Which Are The Best Places For Crypto Miners In the USA?
Crypto Mining has become quite popular worldwide. Now, everyone wants a piece of that crypto cake. But, the latest technologies and beefy computation capabilities are not the only deciding factors of your success in cryptomining. Area of mining also can have a huge impact on your mining operation.
Income tax and electricity costs are different in various states. So, your earning can greatly be affected based on where you live. So, in this article we are going to talk about 8 of the best states for mining in the USA.
8 Top States In The USA For Crypto Mining
Here are the states that are considered the best for crypto miners for their low electricity costs and income tax.
Louisiana is known for its low-income tax rate and energy costs. These two are the critical matrix determining how profitable a business will be in a given state. Bitcoin mining, as we all know, is an energy-hungry venture. 90% of the cost of bitcoin mining goes into electricity bills.
Louisiana has an income tax rate of 1.7%, which is pretty low compared to other states. The electricity bill is 9.5 cents per kWh, which is on all the states' lower extreme. Also, considering living costs, internet facility, internet speed, etc., Louisiana is one of the best states in the US for crypto mining.
Many debate whether North Dakota should take first place for Louisiana's best crypto mining state. No matter which state takes the first place, there's no denying that North Dakota takes one of the top spots in America for being a friendly state for crypto miners; and it has strong reasons behind that achievement.
North Dakota's power rates are pretty affordable. Residential power rates are 9 cents per kWh, and commercial rates are 8 cents per. So, whether you want to mine cryptocurrency at a smaller scale in your home or commercially at a larger scale, both are reasonable in terms of electricity bills.
Income tax is around 1.1% to 2.9%. The laws regarding crypto mining are very favorable toward crypto miners and energy production companies. All these combined make North Dakota a highly advantageous state for mining cryptocurrency.
Besides factors like energy bills, living costs, and laws, Ohio's colder climate also helps to make it a crypto-friendly state in the USA. Ohio's residential and commercial power rates are 1% and 6% less than the national average. The income tax rate is 3.99%, the highest depending on the income amount.
State laws are crypto-friendly so that miners won't worry about the authorities. Recently, energy harbor corp., a power provider, partnered with a bitcoin mining hosting provider. Their mutual goal is to provide nuclear power for crypto mining for even less electricity bills.
There isn't much of a buzz regarding crypto mining in the state of Wyoming; however, it is one of the best places for crypto miners to run their venture peacefully. Its energy bills, other relevant costs, and laws are highly advantageous for crypto miners.
Wyoming has a residential power rate of 9 cents per kWh, commercial 8 cents per kWh, and industrial power rate is 6 cents which is substantially lower than the national average. On top of that, Wyoming does not have any state income tax, which means miners can keep all their earnings to themselves.
Wyoming has a data center exemption law that provides sales tax exemption on the rental or purchase of software, computer equipment, racking system, trays, cabling, etc. So, the cost of crypto mining equipment decreases thanks to this law.
Texas has been pretty well known for its low power cost, people-friendly tax law, and low living cost for a long time. These attributes are necessary for a high standard of living, which the state of Texas offers to its citizens. At the same time, they also make Texas one of the best states for mining cryptocurrency.
Texas lawmakers have taken various steps to show their support for crypto mining. Also, Texas has deregulated the power grid. It allows crypto miners to choose any power provider they want for their mining business. Thus, creating competition among power providers and lowering the price in return.
In the case of electricity and power rates, they are also pretty low. Texas does not have any income tax either. All these things considered, it shouldn’t be a surprise that Texas is one of the best places in the US for crypto miners.
The state of Colorado followed the footsteps of Wyoming regarding cryptocurrency. Wyoming passed various laws related to crypto mining to make it easier for miners to stick to their venture and also provide as much support as the government could. Colorado has done the same to gain a place on this list.
Colorado's governor stated that they are working to figure out a way to accept tax payments in the form of crypto. It shows how much enthusiasm the state authorities have towards cryptocurrency. The energy price and living costs in Colorado are very reasonable to make Colorado a pro-crypto state.
Montana's living cost is affordable to maintain a standard of living. However, that's not the only reason that makes this state one of the most crypto-friendly states. Montana has state laws that make crypto mining less expensive and more profitable.
Montana State has a property tax classification that denotes qualified data center equipment as class 17 property. All class 17 properties are taxed at only 0.9% of their original market value. This law alone has opened the door to many opportunities for crypto miners, especially large-scale ones.
Florida's residential and commercial power rates are 23.7% and 20.5% less than the national average. While these attributes make the state the mecca of crypto miners, these are not the only reasons. Politicians in Florida have stated that they want to attract crypto miners to their states, and they are working on various policies to ensure that.
Florida does not have any income tax. The Miami mayor, Francis Suarez, is working to bring individual crypto miners and companies into the state. Recently, bit digital, a bitcoin company, has relocated its business to Florida. It is a clear sign that Florida is gaining the trust of crypto miners to be a place that they can trust.
What Makes A State Suitable For Crypto Mining?
To the naked eye, crypto mining is just like any other business. You need to invest a hefty amount of money, rent a place to run your business, and share your profit with the government in the form of taxes. The only difference is that crypto mining relies heavily on electricity, which reflects the energy bill.
So what makes a state favorable for crypto mining, you might wonder. As it's pretty new, many states are taking steps to create a suitable environment for crypto miners. Low electricity rates are vital attributes that help make a place ideal for crypto mining.
Lower living costs are also a factor. Also, many authorities are exempting crypto miners from taxes which means they can keep all their profits. Tax exemption of selling or renting crypto-related equipment also contributes to making a state friendly for crypto miners.
The very nature of crypto mining doesn’t go with existing laws and legislations that we are familiar with. High initial investment and low profit is the hallmark of it. So, a refinement of laws was the only thing that could replenish this industry. Luckily, several states have taken the necessary steps, and many others are warming up. It's safe to assume that there will be more states besides the eight above to offer a pro-crypto environment to the miners.
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