Illinois Governor JB Pritzker signed the Digital Asset Tax Act on Tuesday, creating a new tax framework for digital asset transactions and services offered to customers in the state. Under the act, transactions or services involving digital assets and provided to Illinois customers will be taxed at 0.2% of transaction value. The law is scheduled to take effect on January 1, 2027.
A 0.2% levy tied to digital asset transaction value
The tax is aimed primarily at crypto service providers, including exchanges, custodians and brokers. These entities will be required to collect the tax from applicable activity and remit it to the state, using a mechanism described as similar to a sales tax. In practice, when a covered digital asset transaction or service is provided to an Illinois customer, the service provider becomes responsible for calculating, collecting and paying the tax.
The structure of the measure focuses on transaction value rather than company profit or revenue. The fixed 0.2% rate means that the tax obligation is linked to the size of the relevant digital asset transaction or service. Exchanges, custodians and brokers are therefore placed at the center of implementation, because the act assigns them the role of collecting and remitting the levy.
Crypto industry groups oppose the measure
The Crypto Council for Innovation, the Digital Chamber and the Illinois Blockchain Association have strongly opposed the legislation. These industry organizations said the measure could become one of the strictest digital asset tax regimes in the United States, and critics have described it as one of the most anti-crypto laws in the country.
Opponents argue that the tax would impose additional costs on Illinois residents simply for using digital assets. Critics also said the new requirement could push crypto companies, developers and innovation activity out of Illinois. With the act now signed, the digital asset tax is set to enter into force at the beginning of 2027.