Detroit to become largest city in U.S. to accept cryptocurrency for taxes

(CBS DETROIT) – Beginning in 2025, Detroiters will have the option to pay their taxes and other city fees with cryptocurrency, the city announced Thursday, making Detroit the largest city in the U.S. to accept cryptocurrency for taxes. 

City officials said payments will be made through a secure platform and managed by PayPal. 

“Detroit is building a technology-friendly environment that empowers residents and entrepreneurs, said Detroit Mayor Mike Duggan in a statement. “We are excited to be one of the first major U.S. cities to explore blockchains civic applications and allow residents to use their cryptocurrency as a payment option.”

City treasurer Nikhil Patel said the payment option will be made available in mid-2025, but did not provide an exact date as to when the option will launch. 

“The Treasurer’s Office is committed to modernizing our payments channels and processes to enhance the customer experience and improve internal operational efficiency,” Patel said. “This new payment platform will increase accessibility for Detroiters who would like to use cryptocurrency; more importantly, the platform upgrade will also make it easier for Detroiters to make electronic payments — including those who may be unbanked.”

According to the city, other municipalities that accept cryptocurrency for payment include Williston, North Dakota, which allows residents to pay utility bills with cryptocurrency, and Miami Lakes, Florida, where residents can pay for city services like licenses and permits. 

In addition to the new payment option, the city is also inviting blockchain entrepreneurs and innovators to pitch ideas for blockchain civic applications. Officials say they’re interested in “projects that leverage blockchain’s potential for enhancing transparency, improving data security, and streamlining public services.”

As of November 2024, three states accept cryptocurrency for state payment — Colorado, Louisiana and Utah. In September 2022, Colorado became the first state to allow its residents to pay state taxes using cryptocurrency.