Illinois' Digital Asset Tax Faces Industry Challenge Over New Levy

The Illinois Department of Revenue is set to impose a 0.2% tax on digital asset activity starting January 1, 2027, under the Digital Asset Tax Act.

The Blockchain Association and Crypto Council for Innovation have filed a complaint against the state, seeking a declaration that the law is invalid and preliminary and permanent injunctions blocking implementation and enforcement.

The new tax will be based on the value of digital assets held by Illinois customers, rather than gains or service fees. Brokers must collect the tax from their clients, with some exceptions for remote brokers who meet certain thresholds.