Illinois Enacts New Digital Asset Tax, Sparking Industry Concerns
- Governor JD Pritzker of Illinois signed a law imposing a 0.2% tax on crypto transactions starting January 1, 2027.
- The Crypto Council for Innovation criticized it as the “most punitive digital asset tax” in the U.S.
- The tax is expected to generate approximately $60 million for Illinois in its first year of implementation.
- Taxes will be collected by digital asset brokers, including major crypto exchanges operating in the state.
The new tax targets crypto activity conducted physically within Illinois or by individuals with a primary use location in the state. This move positions Illinois as an outlier among states, potentially impacting its competitiveness in digital asset innovation.
Critics argue that this unprecedented tax regime could drive innovation and businesses out of Illinois due to its burdensome nature on residents using digital assets. (Source)
