Illinois Drafts Rules for 0.2% Crypto Transaction Tax

The state of Illinois has released draft rules for its upcoming 0.2% crypto transaction tax, set to take effect on January 1, 2027.

The proposed rules cover a wide range of activities, including buying and selling cryptocurrencies for dollars, trading one digital asset for another, converting fiat into crypto, and bridging assets between blockchains.

The Illinois Department of Revenue (IDOR) has accepted public comments on the draft rules until October 30, 2026. The underlying Digital Asset Tax Act was signed into law in June.

Digital asset brokers are responsible for collecting the tax, which is based on the dollar value of the digital asset when the taxable activity is completed.