Overview
- Governor J.B. Pritzker signed the FY2027 budget that includes the Digital Asset Tax Act, a 0.2% privilege tax on covered crypto activity, and the statute takes effect January 1, 2027.
- The law targets so-called digital asset brokers — exchanges, custodians, wallet and transfer services — and requires those brokers to register with the Illinois Department of Revenue before they begin covered activity.
- Out-of-state firms that earn at least $100,000 in receipts from Illinois customers can be liable under broad sourcing rules that look at account data, mailing address and IP to locate the transaction in Illinois.
- Brokers must collect the tax as a separate line item, keep records and file monthly reports, and the statute includes stiff enforcement measures that industry sources warn could lead firms to geoblock Illinois users or relocate operations.
- State budget documents project roughly $60 million in annual revenue from the levy, and industry groups and executives have urged a veto, pledged political and legal challenges, and are preparing compliance and litigation plans before the law’s start date.