Illinois Publishes Draft Rules for Digital Asset Transaction Tax

The Illinois Department of Revenue has published draft rules for implementing its upcoming digital asset transaction tax. The tax, which will go into effect on January 1, 2027, imposes a 0.2% levy on certain crypto transactions.

According to the draft framework, stablecoins are considered digital assets and will be subject to the tax, while nonfungible tokens (NFTs) are exempt. The rules also clarify that decentralized finance (DeFi) transactions can be taxed if users pay platform or protocol fees considered valuable consideration.

The Illinois Department of Revenue is seeking public comments on the draft through October 30. The state's Digital Asset Tax Act was approved in June despite opposition from crypto industry groups.