Illinois to impose 0.2% tax on crypto broker transactions
**Illinois Imposes 0.2% Tax on Crypto Broker Transactions**
Illinois Governor J.B. Pritzker has signed a $55.9 billion state budget package that includes the Digital Asset Tax Act — adding a 0.2% privilege tax on digital asset broker transactions.
The law takes effect **January 1, 2027**. It applies when either the customer or the broker is in Illinois. Out-of-state brokers qualify if annual receipts from Illinois customers exceed $100,000.
Crypto Council for Innovation and other groups have criticized the measure, warning it could raise transaction costs, lower competitiveness, and add compliance burdens. They caution that similar rules across states could create a patchwork of obligations on top of federal law.
This regulation marks a shift: crypto policy is no longer solely federal. Exchanges, brokers, and DeFi firms now need to monitor state tax and licensing measures alongside federal oversight from the SEC and CFTC.
For industry players serving Illinois customers, key considerations include:
- How the $100,000 receipts threshold applies
- Impact of broker-location provisions
- Potential legal or legislative challenges before the 2027 start date
Illinois’ move could remain unique — or become a model for other states taxing digital asset transactions.
