Illinois Proposes 0.2% Tax on Crypto Transactions Starting 2027

The Illinois Department of Revenue has proposed rules for a new tax framework on digital assets. The Digital Asset Tax Act would impose a 0.2% levy on certain crypto-related transactions starting in 2027.

The tax would apply to digital asset exchanges, transfers, and custodial storage that businesses provide on behalf of customers. This includes buying and selling digital assets, converting fiat currency into crypto, and certain blockchain-to-blockchain transactions.

However, direct peer-to-peer transfers that do not involve an intermediary or valuable consideration are excluded from the tax.