According to Odaily, Illinois Governor JB Pritzker signed the Digital Asset Tax Act on Tuesday. The law applies to digital asset transactions or services offered to customers in Illinois and imposes a 0.2% tax based on the value of the transaction. The measure is scheduled to take effect on January 1, 2027.
A 0.2% levy collected through crypto service providers
The tax is aimed primarily at crypto service providers, including exchanges, custodians and brokers. These businesses will be required to collect and remit the tax on behalf of the state when they provide covered digital asset transactions or services to Illinois customers. The mechanism is described as similar to a sales tax, with collection taking place through the service provider at the point where the relevant transaction or service is delivered.
The law is framed around “digital asset transactions or services,” rather than a single named crypto asset. Under the structure described in the report, if a covered service is provided to a customer in Illinois, the relevant service provider would need to calculate the 0.2% charge based on transaction value and handle the collection and payment process. This places exchanges, custodians and brokers at the center of the law’s implementation.
Industry groups call it one of the strictest digital asset tax regimes
Crypto Council for Innovation, the Digital Chamber and the Illinois Blockchain Association have strongly opposed the law. These industry organizations said the measure could become one of the strictest digital asset tax regimes in the United States. Their criticism focuses on the added cost imposed on users, the treatment of Illinois residents who use digital assets, and the pressure it may create for crypto-related businesses and activity within the state.
Critics argue that the 0.2% digital asset transaction tax will make Illinois residents pay additional costs solely because they use digital assets. They also said the tax could push crypto companies, developers and innovation activity out of Illinois. With the governor’s signature now in place, the law is set for a January 1, 2027 effective date, leaving crypto service providers covered by the measure to face collection and remittance duties once it comes into force.