Illinois’ new crypto tax puts users under a burden stocks do not face
Illinois Gov. J.B. Pritzker signed a $55.9 billion budget that includes the Digital Asset Tax Act, a first-in-the-nation 0.2% tax on crypto transactions. Starting in January 2027, brokers in Illinois must collect the fee on exchanges, transfers, and custody-related activity, with broad sourcing rules that can reach out-of-state firms serving Illinois customers. The law is projected to raise about $60 million a year but has drawn strong criticism from crypto leaders, who say it unfairly singles out digital assets while stocks and bonds face no similar state transaction tax. Industry groups warn it could drive businesses and users out of Illinois, trigger geoblocking and compliance problems for DeFi services, and clash with developing federal tax policy.
