Illinois Department of Revenue releases draft implementing rules for a 0.2% digital-asset transaction tax:
Stablecoins are classified as taxable digital assets, while NFTs are exempt. DeFi transactions are generally exempt, but protocol fees related to platform operations and maintenance are still subject to tax; network fees and exchange fees paid solely to liquidity providers are not taxed.
Cross-chain bridging via broker channels, as well as withdrawals from self-custody wallets where centralized exchanges charge fees, are also brought within the scope of taxation.
The bill is proposed to take effect on January 1, 2027. The public comment period runs until October 30.
Stablecoins are classified as taxable digital assets, while NFTs are exempt. DeFi transactions are generally exempt, but protocol fees related to platform operations and maintenance are still subject to tax; network fees and exchange fees paid solely to liquidity providers are not taxed.
Cross-chain bridging via broker channels, as well as withdrawals from self-custody wallets where centralized exchanges charge fees, are also brought within the scope of taxation.
The bill is proposed to take effect on January 1, 2027. The public comment period runs until October 30.