The state of Illinois introduces a tax on crypto transactions: 0.2% on exchanges, transfers, and storage.
Illinois Governor JB Pritzker has officially approved a $55.9 billion state budget that includes a fundamentally new tax on digital asset transactions. Starting January 1, 2027, brokers serving Illinois clients are required to charge 0.2% of the value of exchanges, transfers, storage, and other cryptocurrency transactions.
This measure has drawn sharp criticism from leading industry organizations, including the Crypto Council for Innovation, the Digital Chamber, and a16z Crypto's head of legal, Miles Jennings. Their main argument: the tax artificially singles out digital assets as a separate category, creating a discriminatory regime compared to traditional financial instruments — stocks, bonds, or derivatives. Essentially, this is a precedent that could trigger a chain reaction in other states.
Geographic Impact and Economic Consequences
According to estimates from analytical firm BDO USA, the levy will affect not only local market participants. If a company's annual revenue from Illinois clients exceeds $100,000, it also falls under the new law — regardless of where the business is registered. State authorities expect the entire package of tax measures to bring over $800 million in additional revenue to the budget in fiscal year 2027.
Expert Commentary: In my view, this is an alarming signal for the entire crypto industry in the U.S. Illinois is creating a dangerous precedent that could quickly be adopted by other states, especially given their chronic need for additional revenue. Instead of fostering innovation, regulators are choosing the path of fiscal pressure, which in the long term could push businesses to relocate to more friendly jurisdictions, such as Wyoming or Texas.