Illinois Imposes 0.2% Tax on Digital Asset Transactions

Illinois has become the first state to tax digital asset transactions, introducing a new 0.2% tax on the value of assets involved in each transaction. This tax applies regardless of whether an investor makes a profit or loss, and it will be collected by businesses facilitating these transactions.

The tax takes effect at the start of 2027, and it requires platforms through which Illinois residents buy, sell, or trade digital assets to register as digital asset brokers if they generate at least $100,000 in annual gross receipts from providing services to Illinois residents.

Crypto industry groups have strongly opposed this measure, with some arguing that it adds friction and may push activity elsewhere.