Key Takeaways
- Rhode Island introduced legislation proposing tax exemptions for small Bitcoin transactions.
- The state’s Senate Bill 2021 aims to allow transactions up to $5,000 monthly or $20,000 annually without state tax liability.
A new bill introduced by Rhode Island Senator Peter Appollonio proposes exempting small Bitcoin transactions from state income tax.
Senate Bill 2021 (S 2021) would allow individuals and businesses to sell or exchange up to $5,000 in Bitcoin per month, or $20,000 per year, without state tax liability, according to the bill’s text.
The bill, effective from January 1, 2027, through January 1, 2028, aims to simplify tax obligations for small-scale crypto trades and encourages compliance through self-certification, with guidelines for record-keeping and valuation.
The bill kicked off on January 9 and is now sitting in the Senate Finance Committee for review.
Rhode Island has been increasingly active in shaping digital asset policy, with multiple bills and a newly enacted law addressing blockchain use, consumer protection, and individual rights.
Recent legislative efforts include proposals to establish a comprehensive Rhode Island Economic Growth Blockchain Act, define and regulate digital assets and open blockchain tokens, and prohibit the compelled disclosure of private cryptographic keys.
In 2025, the state enacted a crypto ATM consumer-protection law requiring kiosk operators to be licensed and comply with safeguards aimed at reducing fraud.
Source: https://cryptobriefing.com/rhode-island-bitcoin-tax-exemption-small-transactions/
