Illinois 0.2% crypto tax law signed, takes effect 2027

Illinois just became the first US state to tax crypto transactions at the point of trade. Governor JB Pritzker signed the Digital Asset Tax Act, or DATA, into law, imposing a 0.2% privilege tax on digital asset business activities including exchanges, transfers, custody, and storage for Illinois customers.

The tax takes effect January 1, 2027. Industry groups estimate it will generate roughly $60 million annually for the state.

The law targets what it calls "digital asset brokers" – a broad category covering companies involved in cryptocurrency trading and management. If a business has a physical presence in Illinois or earns more than $100,000 in annual receipts from Illinois customers, it falls under the statute's reach. Covered assets include Bitcoin, Ether, and a range of other digital assets.

The 0.2% levy is calculated on the gross value of transactions, not on profits. That means every time you swap tokens or move assets through a covered broker, the tax hits the full transaction amount regardless of whether you made money on the trade. For a day trader moving $500K in monthly volume, that works out to $1,000 in state tax charges per month, or $12,000 per year, irrespective of whether those trades were profitable.