Illinois governor signs budget that includes crypto transaction tax

Governor JB Pritzker signed a $55.9 billion state budget that includes a 0.2% 'privilege tax' on crypto transactions involving Illinois residents. The levy applies to all digital asset transactions on any registered platform under broadly termed 'digital asset business activity' and takes effect on Jan.

1, 2027. Digital asset brokers operating in the state must register and comply with new reporting obligations. The Crypto Council for Innovation urged a line-item veto of Article 3 of Senate Bill 3019, saying the measure would create "an unprecedented tax regime that disproportionately burdens Illinois residents for simply using digital assets and will drive innovation and builders out of the state." The council compared taxing blockchain transactions to taxing correspondence because it is delivered by email rather than by post.

The Digital Chamber sent a similar letter on June 3, warning the levy will discourage use of digital assets and push companies and innovation out of Illinois.

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