Bitcoin in Tennessee: what to know
Tennessee bans crypto ATMs (kiosks) from Jul 1, 2026. No state income tax (the Hall tax on investment income was fully repealed in 2021), so crypto gains are not taxed by the state.
Bitcoin has one price in US dollars across the country: the price on this page is the same as on the bitcoin price in the United States page, where federal tax rules are covered in full. What differs in Tennessee is state law and tax, explained below.
Crypto ATMs in Tennessee
HB 2505 (signed April 13, 2026) bans installing or operating crypto kiosks from July 1, 2026, and covers businesses that host the machines. A violation is a Class A misdemeanor. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin. See how bitcoin ATM scams work.
Buying bitcoin in Tennessee
Exchanges and other crypto businesses serving Tennessee residents generally need a state money-transmitter license. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in Tennessee
No state income tax (the Hall tax on investment income was fully repealed in 2021), so crypto gains are not taxed by the state. Federally, the IRS treats bitcoin as property: selling, trading or spending it is a taxable event, with short-term gains (held a year or less) taxed as ordinary income and long-term gains at 0%, 15% or 20%; bitcoin received as pay or from mining is income. Exchanges and other custodial brokers report sales on Form 1099-DA: gross proceeds for sales from 1 January 2025, and cost basis for many sales from 1 January 2026. Every Form 1040 asks whether you received or disposed of a digital asset.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.