Illinois Proposes 0.2% Tax on Crypto Transactions Starting 2027

Illinois is moving ahead with a new tax framework for digital assets that would impose a 0.2% levy on certain crypto-related transactions beginning in 2027.

The Illinois Department of Revenue published proposed rules on September 28, outlining how the Digital Asset Tax Act would work. The rules cover digital asset exchanges, transfers, and custodial storage that businesses provide on behalf of customers.

Under the framework, the tax would apply from January 1, 2027, at 0.2% of the value of the digital asset involved in a qualifying transaction. Digital asset brokers would collect the levy from customers and send the money to the state.

Notably, the rules cover activities such as buying and selling digital assets, converting fiat currency into crypto, converting crypto back into fiat and certain blockchain-to-blockchain transactions. Transfers carried out through brokers can also fall within the tax.

However, the proposal does not treat every crypto transaction the same way. The rules exclude direct peer-to-peer transfers that do not involve an intermediary and do not involve valuable consideration.

Illinois is not the only state considering additional taxes on the crypto industry. In August 2025, New York lawmakers introduced A8966, a proposal that would establish a 0.2% excise tax on digital asset transactions, including the sale or transfer of digital assets. The bill was referred to the Assembly Ways and Means Committee and remains a proposal, not enacted law.