BREAKING: Illinois just passed a law that taxes you every time you buy, sell it or move your crypto.
The governor of Illinois signed a law that will impose a 0.2% tax on use of digital asset services, including exchange, transfer between wallets or custody activities.
The tax applies to firms based in Illinois, as well as any provider generating $100,000 or more annually from Illinois-based users, regardless of physical location.
A company processes a customer's $10,000 Bitcoin purchase, transfer and sale, resulting in $60 in taxes - even if the customer made no profit - because the tax is based on transaction value, not gains.
Illinois Governor J.B. Pritzker signed the Digital Asset Tax Act as part of the state’s 2027 budget.
The law takes effect on January 1, 2027, with projected annual revenue of approximately $60 million.
The crypto industry is pushing back, with the Crypto Council for Innovation calling it “the most punitive digital asset tax in the country,” and Michael Saylor calling it a “big mistake.”
Options are limited since Illinois is out of session for the year, so any policy change would require a special or future legislative session.