Illinois Publishes Draft Rules for Digital Asset Transaction Tax

Illinois has released draft rules for its upcoming digital asset transaction tax, which is set to take effect on January 1, 2027. The tax rate is 0.2% and applies to stablecoins, but excludes non-fungible tokens (NFTs).

The rules also address decentralized finance (DeFi) transactions, with most being exempt unless users pay protocol fees. These fees are considered 'valuable consideration' and trigger the tax. For example, if a user pays fees for operating or maintaining a platform, the transaction is taxable.

Crypto bridging and some exchange-to-wallet transfers could also be taxed when fees are charged. The Illinois Department of Revenue is accepting public comments on the draft rules through October 30, 2026.