Illinois First US State to Tax Crypto Trades with 0.2% Privilege Fee
Illinois has become the first state in the US to impose a tax on cryptocurrency transactions, with Governor J.B. Pritzker signing the Digital Asset Tax Act (DATA) into law as part of the state's fiscal 2027 budget bill.
The new law will charge a 0.2% transactional 'privilege tax' based on the gross value of digital assets, applying to any type of crypto activity, including conversions, movements, and custodial storage.
Crypto service providers operating within the state or earning over $100,000 annually from Illinois residents will be required to register with the state and pay the tax. Failure to comply will constitute a Class 3 felony.
The law is set to take effect starting January 1, 2027, with supporters arguing that it's the state's right to impose taxes on digital infrastructure and contributes an estimated $60 million to the budget.