Illinois Implements New Digital Asset Tax
- Illinois introduces a new law imposing a 0.2% privilege tax on digital asset broker transactions.
- The tax will take effect on January 1, 2027.
- Applies to brokers where either the customer or broker is located in Illinois, with a $100,000 receipts threshold for out-of-state brokers.
- Industry groups criticize the measure as one of the harshest crypto transaction taxes in the U.S.
The Digital Asset Tax Act is part of Illinois’ $55.9 billion state budget package and represents a significant move in state-level cryptocurrency regulation. The law’s reach may extend beyond firms based in Illinois depending on customer location and transaction activity.
This legislation highlights how states are independently experimenting with crypto regulations, potentially influencing national policies and creating strategic challenges for crypto companies operating across multiple jurisdictions.
