Illinois Introduces Nation's First Transaction-Level Crypto Tax

Illinois Governor JB Pritzker has signed a $55.9 billion state budget that includes a new tax on digital asset transactions, despite objections from crypto industry groups.

The new law makes Illinois one of the first states to add a broad transaction-level tax aimed at digital assets. The Digital Asset Tax Act starts on January 1, 2027, and requires brokers to register with the Illinois Department of Revenue before covered activity begins.

Industry groups warned that the measure could raise costs for users and push firms away statewide. Brokers must collect the tax from customers as a separate line item, while also keeping records and filing monthly reports covering the prior month's activity.