Illinois Governor Pritzker Signs 0.2% Digital Asset Tax, Effective January 2027

Illinois Governor JD Pritzker signed the Digital Asset Tax Act into law on Tuesday as part of the state's 2027 budget, enacting a 0.2% tax on crypto transactions starting January 1, 2027. The tax applies to digital asset transfers and purchases conducted within the state or by residents with a primary residence in Illinois. State lawmakers estimate the measure will generate approximately $60 million in annual revenue.

The Crypto Council for Innovation criticized the tax as the "most punitive digital asset tax" in the country, noting that Illinois would be the only state to implement such a transaction-based tax on digital assets. The organization warned the policy could drive innovation and builders out of the state, and expressed concern that stakeholders were not meaningfully consulted before passage.