Illinois Enacts 0.2% Crypto Transaction Tax, Labeled One of the Harshest in the U.S.

KuCoinFlash

Release Time: 06/17/2026 20:43:26

Summary

Illinois Governor JB Pritzker signed the Digital Asset Tax Act, imposing a 0.2% tax on digital asset transactions or services for Illinois residents. The tax, effective January 1, 2027, will be collected by crypto service providers such as exchanges and brokers. Industry groups have criticized the law as one of the most burdensome in the U.S., arguing it could increase costs for users and drive crypto businesses out of the state. The move adds to ongoing digital asset news and raises concerns regarding digital collectibles.

Odaily Planet Daily report: On Tuesday, Illinois Governor JB Pritzker signed the Digital Asset Tax Act, which will impose a 0.2% tax on the transaction value of digital asset trades or services offered to customers in Illinois. The law will take effect on January 1, 2027.

This tax primarily targets cryptocurrency service providers, including exchanges, custodians, and brokers, requiring them to collect and remit taxes on behalf of customers, similar to a sales tax mechanism.

Industry organizations such as the Crypto Council for Innovation, the Digital Chamber, and the Illinois Blockchain Association strongly oppose the bill, stating that it could become one of the most stringent digital asset tax regimes in the United States.

Critics argue that the tax would impose additional costs on Illinois residents simply for using digital assets and could drive cryptocurrency businesses, developers, and innovation out of the state.

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