Illinois Unveils Draft Rules for 0.2% Digital Asset Tax Ahead of 2027 Deadline

The state of Illinois has published draft rules for its upcoming 0.2% digital asset tax, which is set to take effect on January 1, 2027.

The proposed rules clarify how the tax will apply to various crypto activities, including buying, selling, transferring, and storing digital assets through businesses such as centralized exchanges and custodians.

The tax will be based on the value of the assets involved in a qualifying transaction, not just the exchange or service fee. For example, if a customer makes a $1,000 crypto transaction, they could face a $2 state tax, in addition to any other fees.

Stablecoins such as USDT and USDC are considered digital assets for the purposes of this tax, but non-fungible tokens (NFTs) are not. The rules also suggest that decentralized exchanges may be exempt from taxation if fees only go to liquidity providers or miners.