Illinois Proposes 0.2% Tax on Crypto Transactions in 2027

The state of Illinois is proposing a 0.2% tax on certain crypto-related transactions, starting from January 1, 2027. The Digital Asset Tax Act, as outlined by the Illinois Department of Revenue, covers digital asset exchanges, transfers, and custodial storage provided by businesses on behalf of customers. The tax would apply to activities such as buying and selling digital assets, converting fiat currency into crypto, converting crypto back into fiat, and certain blockchain-to-blockchain transactions. However, direct peer-to-peer transfers that do not involve an intermediary and do not involve valuable consideration would be exempt from the tax.

The proposed tax would be collected by digital asset brokers, who would then send the money to the state. This is not the only state considering additional taxes on the crypto industry, as New York lawmakers have introduced similar proposals in the past. In August 2025, New York lawmakers introduced A8966, a proposal that would establish a 0.2% excise tax on digital asset transactions, including the sale or transfer of digital assets. The bill was referred to the Assembly Ways and Means Committee and remains a proposal, not enacted law.

Other states, such as Maryland, Pennsylvania, Arkansas, Montana, Kentucky, and Washington, have also introduced taxes on cryptocurrency or digital-asset activities. Most proposals have focused on crypto mining, energy consumption, or digital-asset businesses, rather than a direct tax on ordinary crypto transactions.