Illinois has enacted the Digital Asset Tax Act, imposing a 0.2% transaction tax on crypto starting January 1, 2027. This move highlights the potential for states to levy taxes on digital assets, even as federal legislation aims to create a unified rulebook for the industry.
Illinois has enacted a $55.9 billion budget featuring a first-of-its-kind 0.2% tax on crypto assets, set to take effect in January 2027. The Digital Asset Tax Act will levy a privilege tax on digital asset brokers for customer transactions, drawing sharp criticism from industry leaders concerned about discriminatory practices and potential capital flight.
Illinois Governor Pritzker signed a new digital asset tax bill into law, imposing a 0.2% tax on crypto transactions starting January 1, 2027. The Crypto Council for Innovation criticized it as the "most punitive" in the nation, warning of severe consequences and potential exodus of innovation from the state. Lawmakers estimate the tax could generate $60 million next year.
The US House Ways and Means Committee has released seven draft bills to clarify and simplify digital asset taxation, including reduced paperwork for crypto holders, clarity on mining/staking, and a potential 'de minimis' exception for small transactions, ahead of a Tuesday hearing.
