Illinois budget includes 0.2% crypto transaction tax

The Illinois General Assembly approved a fiscal 2027 budget that includes a 0.2% tax on crypto transactions to be collected by digital asset brokers. The provision is part of a 1,624-page revenue and tax package filed as the Digital Asset Privilege Tax Act and now awaits Gov. J.B. Pritzker’s signature.

The roughly $56 billion spending plan passed along party lines early Monday. The amendment requires entities operating as digital asset brokers in Illinois to register with the state and to collect the 0.2% charge on sales of digital assets. Lawmakers estimate the levy will raise about $60 million in fiscal 2027.

The measure calls the levy a “privilege tax” and assigns responsibility for remitting it to the broker “making or effectuating the sale of the digital asset business activity.” The text sets registration requirements and makes failure to comply from Jan. 1 subject to criminal penalties. Violations could be charged as a Class 3 felony, carrying two to five years in prison and fines up to $25,000.

Industry groups and local advocates criticized the inclusion of the tax within the larger budget bill. In a post on X, the Digital Chamber called the proposal “economically destructive” and criticized the lack of advance notice for industry participants. The Illinois Blockchain Association urged state leaders to reject the amendment.

Legislative backers described the provision as a way to raise revenue without increasing other tax rates. Opponents argued the rules could create compliance challenges for exchanges, broker-dealers and firms that operate across state or national lines, and they urged repeal or revision with additional consultation on definitions, timelines and enforcement.

Pritzker has indicated he plans to sign the spending plan but had not signed it as of Friday morning. The crypto tax provision follows an April 21 executive order from the governor that bars state employees from betting on prediction market event contracts with platforms such as Kalshi and Polymarket because of concerns about access to nonpublic information.

If enacted, Illinois would join other states that have adopted or considered new approaches to taxing or regulating digital assets. A broker-collected privilege tax structured like this provision is uncommon among state-level measures.