Key facts
- Illinois Governor JB Pritzker signed a budget bill into law enacting a 0.2% tax on digital asset transactions.
- The tax applies to digital asset activities like exchanges, transfers, custody, and wallet services, including transfers between personal wallets.
- The Digital Asset Tax Act will take effect on January 1, 2027.
- Digital asset brokers operating in Illinois or with significant Illinois customer receipts must collect and remit the tax.
- Industry groups have criticized the tax as punitive and potentially driving innovation out of the state.
Illinois Governor JB Pritzker has signed a new digital asset tax bill into law, enacting a 0.2% tax on crypto transactions starting January 1, 2027. The Crypto Council for Innovation (CCI) criticized the move, calling it the "most punitive digital asset tax" in the country and warning it could drive innovation out of the state. The tax applies to digital asset activities like exchanges, transfers, custody, and wallet services, including transfers between personal wallets. Digital asset brokers operating in Illinois or with significant Illinois customer receipts will be responsible for collecting the tax and must register with the Illinois Department of Revenue. Lawmakers expect the tax to generate approximately $60 million annually. The CCI also noted that affected parties did not have a chance to provide input on the proposal before its enactment. Chicago native Renato Mariotti criticized the tax, stating lawmakers included it in the state budget late and that it makes Illinois the first state to specifically tax crypto differently.