The Digital Asset Tax Act, signed by Governor JB Pritzker on June 16, 2026, introduces a 0.2% levy on digital asset business activities, including transactions, transfers, and brokerage custody services. The law applies to entities with more than $100,000 in gross receipts connected to Illinois, making it the first state-level targeted tax of its kind.
Trade groups including the Blockchain Association, Crypto Council for Innovation, and Digital Chamber have filed two separate lawsuits in the Sangamon County Circuit Court. The Digital Chamber initiated its challenge in late July, while the Blockchain Association and the Crypto Council for Innovation filed their suit on August 21. Both groups seek to block the tax before its effective date of January 1, 2027.
The plaintiffs argue that the tax is unconstitutional, citing the Commerce Clause and the Internet Tax Freedom Act. They claim the levy discriminates against interstate commerce by taxing digital assets while leaving traditional financial activities untaxed. Additionally, they argue that the 'connected to Illinois' threshold for gross receipts may violate due process by affecting firms with minimal physical presence in the state.
Industry representatives estimate that compliance costs for firms could range from tens or hundreds of thousands of dollars to over $1 million per company. A preliminary injunction was requested on September 9, 2026, to prevent enforcement of the law before the start of the0 2027 calendar year.