Bitcoin Loans by State
Where you live doesn’t change your rate. It changes which lenders will take you — and what selling instead would have cost you in tax.
Availability verified August 17, 2026 · Verified daily
Frequently looked up
Selling vs. borrowing, state by state
Enter how much Bitcoin you hold and how much you want to borrow. The calculator shows, for every state, what selling would cost you in tax versus what borrowing against your Bitcoin costs over the same period — and how far Bitcoin has to fall for borrowing to lose. Availability counts and each state’s page link stay visible whether or not you run the numbers.
Tax figures are estimates, under review.Federal brackets are the 2026 figures from IRS Rev. Proc. 2025-32; state figures use each state’s 2026 income-tax brackets and capital-gains treatment (Tax Foundation and state Departments of Revenue), and we are still confirming each against its primary source. Treat the output as a directional estimate, not a filing figure. This is general information, not tax advice.
This tool is general information, not tax, legal, or investment advice, and every figure is an estimate. borrowonbitcoin.com is published by Sypher Capital; we are a publisher and affiliate referral source, not a lender, broker, registered investment advisor, or tax preparer. The federal and state capital-gains tax rates used here are compiled from third-party sources, including IRS Revenue Procedures, state departments of revenue, and the Tax Foundation, and reflect the tax year shown; each rate links to the source it came from. Tax law changes, and how it applies depends on your income, filing status, residency, cost basis, and other facts this tool does not capture, so your actual tax may differ. The tax treatment of Bitcoin-backed loans is itself still evolving. Confirm your situation with a CPA or qualified tax professional before acting.
“Lenders” counts the 7 US Bitcoin-backed loan lenders we track. North Dakota has the fewest coverage at 3. Availability reflects each lender’s stated state coverage, verified daily.
What actually changes by state
Not your rate. Lenders price on loan size, LTV, and term — not geography. A $100,000 loan costs the same in Wyoming as in New York.
Your choice of lender. Consumer-lending licenses are issued state by state, so the roster that will take you varies. 29 of 51 jurisdictions have all 7 lenders available; the rest have fewer. These are licensing gaps, not Bitcoin restrictions — the same lenders operate freely one state over.
The tax of not selling. The real state variable shows up only if you sell instead of borrow: selling realizes a capital gain, and while federal tax applies everywhere, 9 states add no income tax of their own and others do. Washington is the trap — no income tax, but a 7% capital-gains excise tax on large gains. The calculator above estimates it for every state; the per-state detail lives on each state’s page.
Is the loan interest deductible?
Usually not — and it doesn’t depend on your state. It depends on what you do with the money. Interest on a Bitcoin-backed loan is not deductible as personal interest (IRC §163(h)). It may qualify as investment interest expense under §163(d) only if you can trace the proceeds to an investment purpose (Treas. Reg. §1.163-8T), you itemize, and you have net investment income to offset it against.
Borrow $100K against your Bitcoin to buy a car: not deductible. To buy securities: possibly, capped at your net investment income. Same lender, same rate, same state — opposite answers. That’s why deductibility is a use-of-proceeds question, not a state one. General information, not tax advice.
Frequently asked
Are Bitcoin-backed loans available in every US state?
In most of them, yes, though not every lender serves every state, so the number of lenders available varies by jurisdiction. Coverage gaps come from state consumer-lending licenses, not anything specific to Bitcoin. Each state’s page shows exactly which lenders we track lend there and which don’t.
Does my state change the rate I pay?
No. Lenders price on loan size, LTV, and term — not geography. A $100,000 loan costs the same in Wyoming as in New York. What your state changes is which lenders will take you.
Why do some lenders skip certain states?
State-by-state consumer-lending licensing. A lender can operate freely in one state and not its neighbor because of licensing requirements, not because of anything specific to Bitcoin.
Is the interest on a Bitcoin-backed loan tax deductible?
Usually not — and it does not depend on your state. It depends on what you do with the money. Personal-use interest is not deductible (IRC §163(h)); it may qualify as investment interest expense (§163(d)) only with tracing, itemizing, and net investment income. This is general information, not tax advice.
What if I sell my Bitcoin instead of borrowing?
Selling realizes a capital gain, and federal capital-gains tax applies in every state. Some states add their own tax on the gain and some do not. Each state’s page covers how that state treats it.
Rates don’t change by state — but they change by loan size.
Run your numbers against every lender that serves you.
Cite this data
Bitcoin-backed loan availability across all 51 US jurisdictions: 7 US lenders tracked, 29 states with all 7 available, verified August 17, 2026. Includes a sell-vs-borrow tax breakeven estimate by state. borrow/on/bitcoin. https://borrowonbitcoin.com/bitcoin-loans-by-state
Free to cite with attribution and a link. Media inquiries welcome.
Sources
- Federal capital-gains tax. Long-term rate thresholds are the 2026 figures from IRS Revenue Procedure 2025-32; the 3.8% Net Investment Income Tax follows IRC §1411. Rates apply per IRS Topic No. 409.
- State income-tax brackets. Each state’s 2026 individual income-tax brackets are from the Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. The state tax on a gain is estimated by stacking the gain on your taxable income against those brackets.
- State capital-gains treatment.Capital-gains exclusions (AR, AZ, NM, ND, SC, WI), Missouri’s deduction, Hawaii’s alternate-rate cap, and Washington’s 7% capital-gains excise are applied per each state’s Department of Revenue. These are still being confirmed against each primary source, which is why the figures are labeled estimates.
- Interest deductibility. IRC §163(h) (personal interest), §163(d) (investment interest expense), and Treas. Reg. §1.163-8T (tracing).
- Lender availability & rates. Each lender’s published state coverage and current APR, verified daily; see how we verify. Bitcoin spot price and the market-average rate used by the calculator are live values.
borrowonbitcoin.com is an independent comparison publisher, not a lender, broker, or registered investment advisor. Availability verified daily against each lender’s published state coverage; tax figures are estimates for general information, not tax advice — confirm your own situation with a qualified tax professional. How we verify.