Illinois Approves 0.2% Tax on Crypto Transactions, First State-Level Digital Asset Tax in U.S.

Governor JB Pritzker signed a 0.2% "privilege tax" on digital asset transactions into law as part of Illinois's $55.9 billion budget bill. The tax applies to transactions by Illinois residents on registered digital asset platforms, regardless of whether users generate profits.

The legislation also introduces new registration and reporting requirements for digital asset brokers operating in the state. Industry groups, including the Crypto Council for Innovation and The Digital Chamber, opposed the measure, arguing that taxing blockchain transactions based solely on the technology used is unprecedented and could drive businesses to other jurisdictions.