Illinois has officially implemented a new tax on digital asset transactions as part of a $55.9 billion state budget signed by Governor J.B. Pritzker. Effective January 1, 2027, brokers will be mandated to impose a 0.2% fee on the value of various activities, including exchanges, transfers, and storage of digital assets for clients in Illinois.
This legislation has drawn criticism from several industry groups, including the Crypto Council for Innovation and the Digital Chamber, as well as Miles Jennings from a16z Crypto. Opponents argue that the tax unfairly classifies cryptocurrencies separately and subjects digital asset transactions to a regulatory regime that does not extend to traditional financial products like stocks and bonds.
Furthermore, BDO USA has noted that this tax could impact businesses outside Illinois, particularly those earning over $100,000 annually from state clients. State officials anticipate that this new tax initiative will contribute more than $800 million in revenue for the fiscal year 2027.
