Illinois Drafts Rules for 0.2% Crypto Transaction Tax Ahead of 2027 Start

The state of Illinois is moving forward with its plan to implement a 0.2% digital-asset transaction tax, which is set to take effect on January 1, 2027.

The tax will be applied to transactions involving covered digital assets, including spot trades, crypto-to-fiat conversions, and bridging between blockchains.

Covered activity also includes transfers and paid custody services, but direct peer-to-peer transfers without an intermediary are exempt from the tax.

Brokers will be required to collect the tax from Illinois customers and remit it to the state, with a threshold of $100,000 in annual receipts for out-of-state providers.