Illinois Slaps 0.2% Tax on Crypto Transactions Starting 2027

Illinois has taken a stance against cryptocurrency by introducing the Digital Asset Tax Act (DATA), which will impose a 0.2% levy on digital asset transactions and services beginning January 1, 2027.

The law targets primarily cryptocurrency service providers such as exchanges, custodians, and wallet platforms. However, businesses are likely to pass these costs on to consumers through higher fees, making it more expensive to buy, sell, or store digital assets.

Miles Jennings, Head of Policy and General Counsel at a16z crypto, called the measure 'one of the most anti-crypto laws in the U.S.'

The Chamber of Digital Commerce is suing the State of Illinois over the digital asset tax. NetChoice, a trade association of internet businesses, is also challenging the Chicago social media usage tax.