Illinois Digital Asset Tax Takes Effect in January 2027

The Illinois state government has implemented a new tax on digital assets, effective January 1, 2027. The law requires brokers to register in advance and review their record-keeping processes.

PYMNTS reports that the tax rate is 0.2% of the value of digital assets traded, transferred, or stored by clients within the state. Brokers with a physical presence in Illinois or total Illinois revenue exceeding $100,000 must register before January 1, 2027.

The new law was signed by Governor JB Pritzker in June and has been called 'the toughest digital asset tax law in the country' by the Crypto Council for Innovation. Jones Day notes that the bill may face constitutional challenges.