Illinois Drafts Rules for Digital Asset Transaction Tax Implementation
- A new stablecoin tax of 0.2% will apply to transactions starting Jan. 1, 2027.
- Non-fungible tokens (NFTs) are excluded from the tax scope.
- Decentralized finance (DeFi) transactions may be exempt unless they involve fees deemed “valuable consideration.”
- Crypto bridging activities through brokers for consideration are considered taxable exchanges.
- Transfers from centralized exchanges to self-custody wallets could incur taxes if a fee is charged by the exchange.
- The Illinois Department of Revenue is accepting comments on these draft rules until Oct. 30.
The proposed tax rules clarify how Illinois will implement its digital asset transaction tax, affecting various crypto activities including DeFi and stablecoins, while excluding NFTs from taxation.
With the scheduled implementation date of January next year, the new regulations aim to define taxable events in the growing cryptocurrency landscape.(Source)
