The state of Illinois has introduced draft regulations aimed at taxing cryptocurrency transactions. Under the proposed framework, a 0.2% tax will be applied to the value of all digital asset exchanges and transfers. This levy applies regardless of whether the transaction results in a profit or a loss for the user.
These rules are part of the Digital Asset Tax Act, which was included in the state budget for the 2027 fiscal year. The Illinois Department of Revenue proposed the draft on September 25, 2026. The tax is currently in the formalization stage and has not yet been filed with the Secretary of State or the Joint Committee on Administrative Rules.
The state expects the new tax framework to take effect in 2027, following the completion of necessary regulatory procedures. The progression of these rules through the legislative process remains subject to further administrative steps by the Illinois Department of Revenue.
