Budget & Taxes (Income Tax)

SB 2021 creates a temporary tax exemption for small Bitcoin transactions in Rhode Island. It exempts individuals and Rhode Island-based businesses from state income tax on Bitcoin sales or exchanges totaling $5,000 or less per month, or $20,000 or less annually. Taxpayers must self-certify eligibility on their annual tax return and maintain records to verify they stayed within the limits, but do not need to report each transaction individually. The exemption applies only to transactions within the state and expires on January 1, 2028.