This paper uses data from the Computer and Internet Use Supplement to the August 2000 Current Population Survey to explore causes of racial differences in computer ownership and Internet use rates. Overall, Mexican-Americans are one-half as likely to own computers and one-fourth as likely to use the Internet at home than are whites. The black home computer rate and Internet use rate are, respectively, 58 percent and 46 percent of the white rate. Racial differences in education, income, and occupation contribute substantially to these gaps. Racial income differences are particularly influential, explaining 25.1 to 31.0 percent of the black/white gap and a quarter of the Mexican-American/white gap. These income differences explain one-tenth of the gaps in Internet use conditional on having a home computer. Group differences in all measurable characteristics explain approximately 50 percent of the racial gaps in home computer rates and 11.7 to 31.4 percent of the racial gaps in conditional Internet use rates. Costs and school differences do not appear to be responsible for the remaining gaps. Language barriers may be important in explaining low rates of computer and Internet use among Mexican-Americans. (Contains 1 figure, 13 tables, and 37 references.) (SM)