Illinois Enacts 0.2% Crypto Transaction Tax Starting in 2027
Illinois has enacted the Digital Asset Privilege Tax Act through its fiscal 2027 budget, making it the first U.S. state to levy a transaction-based tax on covered digital-asset activity. Unlike capital-gains taxes, the charge is tied to the value of assets involved in exchanges, transfers, custody and wallet services received by Illinois customers. The broad base has drawn industry objections that brokers could pass costs to consumers or curtail service in the state.
The Illinois General Assembly passed SB 3019 on June 1, 2026, and Governor JB Pritzker signed it on June 16 as part of the state's $55.9 billion FY2027 budget. Starting Jan. 1, 2027, digital asset brokers must collect a 0.2% tax, register with the Illinois Department of Revenue and file monthly returns. Remote brokers cross the threshold at $100,000 in annual Illinois receipts; violations can trigger a Class 3 felony. The levy is projected to raise $60 million a year.
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The history behind this eventDigital Chamber Sues Illinois to Block 0.2% Crypto Tax
Illinois enacted the Digital Asset Tax Act as part of its fiscal 2027 budget, creating a 0.2% levy on the value of digital assets involved in services received by customers in the state. Starting Jan. 1, 2027, the measure will cover activities including exchanging, transferring and storing digital assets. Because the tax is based on asset value rather than investment gains or service fees, the law has become a significant test of whether US states can impose transaction-based taxes specifically on blockchain activity.
The Digital Chamber filed a 32-page complaint in Sangamon County Circuit Court on July 21, 2026, naming Illinois Attorney General Kwame Raoul and Department of Revenue Director David Harris as defendants. The trade group is seeking a declaration that the law is invalid and an order blocking enforcement before its Jan. 1, 2027, start date. It argues Illinois unlawfully singles out assets recorded or transferred using blockchain technology and could impose tax even when an investor earns no profit or no ownership change occurs.
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