Illinois Unveils Draft Rules for Crypto Transaction Tax: 0.2% Levy Coming in 2027

Illinois has taken a significant step towards regulating cryptocurrency transactions by releasing draft rules to tax them. The state's Digital Asset Tax Act, enacted in the fiscal year 2027 budget, proposes a 0.2% tax on the value of digital asset transactions, including exchanges and transfers, regardless of profit or loss.

The draft rules, proposed on September 25, 2026, are expected to take effect in 2027 after further regulatory steps. This development suggests that regulatory uncertainty may be affecting Bitcoin's price predictions negatively, with current market pricing implying a low probability for the cryptocurrency reaching higher price targets by the end of 2026.

The Illinois Department of Revenue has not yet filed these rules with the Secretary of State or submitted them to the Joint Committee on Administrative Rules (JCAR), so the tax framework is still in the formalization stage. The progression of the draft rules through the Illinois legislative process will be closely watched, as their formalization could impact crypto market dynamics.