Illinois Proposes 0.2% Tax on Crypto Transactions Starting 2027

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

The proposed rules, published on September 28, cover digital asset exchanges, transfers, and custodial storage provided by businesses on behalf of customers.

Under the framework, the tax would apply from January 1, 2027, at 0.2% of the value of the digital asset involved in a qualifying transaction. Digital asset brokers would collect the levy from customers and send the money to the state.

The rules cover 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 are exempt.