State-by-State Guide ยท Updated November 13, 2026

Is Bitcoin Mining Legal in the US? State-by-State Guide 2026

Mining Bitcoin is legal in every state. This guide shows what each state's law says, what power costs there, and which federal and local rules apply to home and commercial miners.

Key facts

  • Mining Bitcoin is legal under federal law and in all 50 states. No state bans it.
  • Eight states have passed laws that protect the right to mine. Arkansas later added limits to its law.
  • Four states set extra rules for large mines: Texas, New York, Nebraska and Washington (through its public utility districts).
  • Most disputes are local: zoning, noise, and who pays for grid upgrades.

The short answer

Yes. You can mine Bitcoin legally anywhere in the United States, at home or at industrial scale. Congress has never banned mining, and no state has either. What changes from place to place is how much paperwork a large mine faces, how much the electricity costs, and whether a city or county can restrict where the machines sit.

This guide covers the federal rules first, then every state in one table, then the local rules that decide most real projects. It is general information, not legal advice. Laws change, so check the statute or ask a lawyer before you spend money on a site.

Federal rules that apply in every state

Tax. The IRS treats mined coins as income on the day you receive them, valued at that day's market price (Notice 2014-21). If mining is your business, self-employment tax applies too, and you can deduct power and depreciate hardware. Selling the coins later creates a capital gain or loss.

Money transmission. FinCEN said in 2013 and 2014 that a person or company mining for its own account is not a money transmitter. Running a pool or holding coins for customers can change that answer.

Securities. In March 2025, SEC staff stated that proof-of-work mining, solo or pooled, does not involve the offer and sale of securities.

Policy. Executive Order 14178 (January 2025) made it federal policy to protect lawful mining and self-custody. The March 2025 order creating the US Strategic Bitcoin Reserve followed. In Congress, the Mined in America Act (2026) would add a voluntary certification for domestic mines and write the reserve into law; it has not passed.

What has not happened. A proposed 30% federal excise tax on mining electricity was never enacted. An emergency energy survey of miners was withdrawn in 2024 after a court challenge.

How states differ

States fall into three groups.

States with a right-to-mine law. Montana went first in 2023, followed by Arkansas, Oklahoma, Louisiana, Tennessee, Kentucky, Utah and Arizona. These laws generally stop cities and counties from banning mining or singling it out with special zoning, and several bar utilities from charging miners a discriminatory rate. Arkansas is the caution: after complaints about noise and foreign owners, it amended its law in 2024 to add noise limits, restore local control and bar ownership by certain foreign parties.

States with rules for large mines. Texas has the most mining in the country and now requires big sites to register and to accept curtailment in grid emergencies. Nebraska makes mines above one megawatt pay for the grid upgrades they cause. New York paused new air permits for fossil-fuelled mines for two years; the pause expired in November 2024. In Washington the limits come from individual public utility districts, not the state.

Everyone else. About three dozen states have no mining statute at all. Mining there is treated like any other data-center load: legal, and subject to ordinary zoning, building, noise and utility rules.

All 50 states at a glance

Electricity figures are average industrial prices from the US Energy Information Administration for early 2026, in cents per kilowatt-hour. Large miners usually negotiate their own rates, so use these to compare states, not to forecast a bill. Each state name links to our page on that state's Bitcoin reserve and crypto laws.

Showing 50 of 50

StateStatusWhat the law saysPower, ยข/kWh
AlabamaNo mining lawNo mining-specific law. Ordinary zoning and utility rules apply.7.8 ยข/kWh
AlaskaNo mining lawNo mining-specific law. Power is among the most expensive in the country.22.3 ยข/kWh
ArizonaRight-to-mine lawHB 2342 (2025) stops cities and counties from restricting home mining or running a node.7.2 ยข/kWh
ArkansasRight to mine, with limitsAct 851 of 2023 protects mining. Acts 173 and 174 of 2024 added noise limits, restored local control and barred ownership by certain foreign parties.6.6 ยข/kWh
CaliforniaNo mining lawNo mining-specific law or ban. Environmental review and high prices are the real limits. The 2026 digital-asset licensing law covers exchanges, not miners.19.4 ยข/kWh
ColoradoNo mining lawNo mining-specific law.9.5 ยข/kWh
ConnecticutNo mining lawNo mining-specific law.20.4 ยข/kWh
DelawareNo mining lawNo mining-specific law.12.6 ยข/kWh
FloridaNo mining lawNo mining-specific law.9.3 ยข/kWh
GeorgiaNo mining lawNo mining-specific law. A large mining base; the sales-tax treatment of mining equipment has been debated.7.6 ยข/kWh
HawaiiNo mining lawNo mining-specific law. The highest power prices in the country.33.1 ยข/kWh
IdahoNo mining lawNo mining-specific law.7.0 ยข/kWh
IllinoisNo mining lawNo mining-specific law.9.7 ยข/kWh
IndianaNo mining lawNo mining-specific law.9.3 ยข/kWh
IowaNo mining lawNo mining-specific law.6.7 ยข/kWh
KansasNo mining lawNo mining-specific law.8.3 ยข/kWh
KentuckyRight-to-mine lawHB 701 (2025) protects the right to mine, run a node and self-custody, and bars zoning that singles out mining.7.8 ยข/kWh
LouisianaRight-to-mine lawHB 488 (2024) protects mining and self-custody and limits control of mines by certain foreign parties.6.6 ยข/kWh
MaineNo mining lawNo mining-specific law.17.4 ยข/kWh
MarylandNo mining lawNo mining-specific law.17.3 ยข/kWh
MassachusettsNo mining lawNo mining-specific law.20.8 ยข/kWh
MichiganNo mining lawNo mining-specific law.9.3 ยข/kWh
MinnesotaNo mining lawNo mining-specific law.9.3 ยข/kWh
MississippiNo mining lawNo mining statute confirmed in force. Right-to-mine bills have advanced in the legislature.7.6 ยข/kWh
MissouriNo mining lawNo mining-specific law. Right-to-mine bills have been introduced.8.1 ยข/kWh
MontanaRight-to-mine lawSB 178 (2023) bars local bans and discriminatory power rates, and protects home mining.6.8 ยข/kWh
NebraskaRules for large minesLB 526 (2025): mines above 1 MW pay for the grid upgrades they need, report their usage and accept interruptible service.7.6 ยข/kWh
NevadaNo mining lawNo mining-specific law.7.6 ยข/kWh
New HampshireNo mining lawNo mining-specific law. The state does have a Bitcoin reserve law (HB 302).19.3 ยข/kWh
New JerseyNo mining lawNo mining-specific law.15.1 ยข/kWh
New MexicoNo mining lawNo mining-specific law. The lowest average industrial price on this list.5.7 ยข/kWh
New YorkRules for large minesA two-year pause on new air permits for fossil-fuelled mines took effect in 2022 and expired in November 2024. Normal state air permitting still applies.10.9 ยข/kWh
North CarolinaNo mining lawNo mining-specific law.7.9 ยข/kWh
North DakotaNo mining lawNo mining-specific law. The state courts miners to use flared gas and stranded power.8.1 ยข/kWh
OhioNo mining lawNo mining-specific law.10.5 ยข/kWh
OklahomaRight-to-mine lawHB 3594 (2024) protects the right to mine, run a node and self-custody, and bars discriminatory power rates.6.4 ยข/kWh
OregonNo mining lawNo mining-specific law.8.0 ยข/kWh
PennsylvaniaNo mining lawNo mining-specific law.11.8 ยข/kWh
Rhode IslandNo mining lawNo mining-specific law.21.3 ยข/kWh
South CarolinaNo mining lawNo mining-specific law.8.3 ยข/kWh
South DakotaNo mining lawNo mining-specific law.9.3 ยข/kWh
TennesseeRight-to-mine lawHB 2309 (2024) allows home mining and lets businesses mine in areas zoned for industrial use.6.8 ยข/kWh
TexasRules for large minesSB 1929 (2023) requires mines above 75 MW to register with the Public Utility Commission. SB 6 (2025) adds cost-sharing and emergency curtailment rules for large loads.6.9 ยข/kWh
UtahRight-to-mine lawHB 230 (2025) protects the right to mine, run a node and self-custody.8.4 ยข/kWh
VermontNo mining lawNo mining-specific law.13.1 ยข/kWh
VirginiaNo mining lawNo mining-specific law.10.3 ยข/kWh
WashingtonRules for large minesNo state ban. Chelan, Douglas and Grant county utility districts set their own rate classes and load limits for miners.7.0 ยข/kWh
West VirginiaNo mining lawNo mining-specific law.8.3 ยข/kWh
WisconsinNo mining lawNo mining-specific law.9.1 ยข/kWh
WyomingNo mining lawNo mining statute, but state law exempts miners from money-transmitter licensing.8.8 ยข/kWh

Mining at home

Home mining is legal in every state. The practical limits are closer to home than the statehouse:

Montana, Arkansas and Arizona go further and stop local governments from banning mining in a residence.

Mining at commercial scale

For a commercial site, state law is rarely the obstacle. These are:

Where mining meets Bitcoin reserves

Mining is one of the three ways a government ends up holding Bitcoin, alongside seizures and purchases. Bhutan built its stack from hydropower, and Kazakhstan now routes a share of its miners' output into a national reserve. In the US, listed miners such as MARA, CleanSpark and American Bitcoin hold much of what they mine as treasury, which is why they appear in our public companies tracker. For the mechanics, see our glossary entries on mining, proof-of-work and hash rate, and the guide to what a Strategic Bitcoin Reserve is.

Bitcoin mining law FAQs

Is Bitcoin mining legal in the United States?

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Yes. No federal law bans Bitcoin mining and no state bans it. Miners owe income tax on the coins they mine and must follow local zoning, noise and electrical rules.

Which states have right-to-mine laws?

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Montana (2023), Arkansas (2023, amended 2024), Oklahoma and Louisiana (2024), Tennessee (2024), and Kentucky, Utah and Arizona (2025). These laws stop local governments from banning mining or singling it out, and several bar discriminatory power rates.

Is Bitcoin mining banned in New York?

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No. New York paused new air permits for mines powered by their own fossil-fuel plants for two years, starting in November 2022. The pause expired in November 2024 and was not renewed. Home mining and grid-powered mining were never covered.

Do I need a license to mine Bitcoin?

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Not to mine for yourself. FinCEN does not treat a miner working for its own account as a money transmitter. A large site may need a utility agreement, building and electrical permits, and in Texas a state registration above 75 megawatts.

Do I pay tax on mined Bitcoin?

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Yes. The IRS counts mined coins as income at their market value on the day you receive them. If you later sell for more than that value, the difference is a capital gain.

Can my city or HOA stop me from mining at home?

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A city can enforce noise and electrical rules, and a lease or homeowners' association can forbid mining by contract. Montana, Arkansas and Arizona bar local governments from banning home mining outright.

Sources: IRS Notice 2014-21; FinCEN guidance FIN-2013-G001 and FIN-2014-R001; SEC Division of Corporation Finance statement on proof-of-work mining (March 20, 2025); Executive Order 14178; state session laws and bill texts cited in the table; US Energy Information Administration state electricity data. Checked November 13, 2026. Read how we verify data.

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โœ“ Verified by the BitcoinReserveTracker Team

BitcoinReserveTracker Team has verified the information and data provided on this page. Our research team is dedicated to tracking Bitcoin reserves, cryptocurrency regulation, and mining policy across the globe. We verify information using government records, official announcements, and other primary sources to ensure the data remains accurate and regularly updated. Learn how we verify data โ†’