Illinois Imposes 0.2% Crypto Transaction Tax, Industry Reacts

Governor J.B. Pritzker signed Senate Bill 3019, the Digital Asset Privilege Tax Act, into Illinois' FY 2027 budget on June 16. The law levies a 0.2 % tax on digital‑asset business activity—exchange, transfer or custody services—performed for Illinois customers by firms that generate at least $100,000 in gross receipts from the state. The tax takes effect on January 1, 2027 and is projected to raise about $60 million annually, a rounding‑error in the $55.9 billion budget but the first such levy in the United States.

The measure has provoked swift backlash from the Crypto Council for Innovation, the Illinois Blockchain Association, the Digital Chamber and other industry groups, which call it “the most punitive digital‑asset tax in the country.” Critics argue the tax could push crypto businesses and developers out of Illinois, may violate federal law, and lacks any counterpart for stocks, bonds or derivatives. Legal challenges are being discussed as the state legislature is adjourned, limiting immediate avenues for reversal.

The crypto tax was added at the last minute to a broader budget that also introduces new taxes on digital advertising, social‑media platforms and fantasy‑sports betting, raising the total new tax revenue by roughly $800 million per year. Observers note the tax’s broad language could affect out‑of‑state firms serving Illinois residents and will require brokers to register, collect and report the levy monthly.