Illinois becomes the first US state to impose a 0.2% tax on digital asset transactions starting January 1, 2027.
Illinois Governor JD Pritzker signed legislation introducing a 0.2% tax on cryptocurrency transactions, effective January 1, 2027. The measure aims to generate an estimated $60 million in annual revenue for the state.
The tax applies to all digital asset transfers and purchases, positioning Illinois as the only state with such a levy. Critics, including the Crypto Council for Innovation, argue the tax is the most punitive in the nation and could stifle innovation.
The law was included in the state’s 2027 budget, with advocates warning it may drive crypto businesses and users out of Illinois.