Illinois to Tax Crypto Trades 0.2%—Even on Losing Trades

On September 29, the Illinois Department of Revenue officially released a draft outlining details of its Digital Asset Tax Act (DATA).

Notably, Governor J.B. Pritzker signed the unparalleled bill into law on June 16 as part of the state’s fiscal 2027 budget bill (SB 3019). 

Illinois mandates 0.2% crypto transaction tax

Most states have defaulted to the federal IRS rules, where crypto is treated as property and therefore attracts standard capital gains taxes.

Differently, Illinois’s DATA will charge a 0.2% transactional “privilege tax” based on the gross value of the digital asset.

More specifically, this tax will cover any type of crypto activity, including crypto conversions, crypto movements, and basic custodial storage.

To enforce this, Illinois will require mandatory state registration by all crypto service providers operating within the state or earning over $100,000 annually from its residents. Failure to comply will constitute a Class 3 felony.

Reaction from supporters and critics

The law is set to take effect starting January 1, 2027. Supporters argue that the state has the right to impose taxes on digital infrastructure. Crypto taxation would also contribute an estimated $60 million to the budget.