According to ChainCatcher, Illinois Governor JB Pritzker signed the Digital Asset Tax Act on Tuesday. The legislation will impose a 0.2% tax on the value of digital asset transactions or services provided to customers in Illinois. The act is scheduled to take effect on January 1, 2027, setting a defined timeline for the state’s new tax arrangement covering digital asset activity.
0.2% Levy Targets Digital Asset Services
The tax mainly applies to crypto service providers, including exchanges, custodians and brokers. Under the act, these providers are required to collect the tax on behalf of the state and remit it, with a mechanism similar to a sales tax. The calculation is based on the transaction value when digital asset transactions or services are provided to Illinois customers.
The measure is framed around digital asset transactions and services rather than a single token or specific asset category. For crypto businesses serving customers in Illinois, the named groups of providers — exchanges, custodians and brokers — are placed at the center of the collection and remittance process.
Industry Groups Oppose the Measure
Industry organizations including the Crypto Council for Innovation, the Digital Chamber and the Illinois Blockchain Association have strongly opposed the act. These groups said the measure could become one of the strictest digital asset tax regimes in the United States. Their objections focus on the added cost burden and the effect on crypto-related business activity in the state.
Critics argue that Illinois residents would face additional costs solely for using digital assets. They also say the tax could push crypto companies, developers and innovation activity out of Illinois. With the governor’s signature, the state’s digital asset tax framework now has a confirmed effective date and a clear set of service providers responsible for collecting and submitting the levy.