Illinois proposes 0.2% crypto tax on digital asset transactions

4.1 Regulation

Sep 30, 2026

Illinois released draft rules for a 0.2% digital asset tax starting in 2027, covering stablecoins and brokered crypto transactions, but exempting most DeFi and NFTs. Transfers with fees may be taxed. Comments open until Oct 30, 2026.

Illinois has released draft regulations for a 0.2% digital asset transaction tax, set to take effect on January 1, 2027. The tax applies to the value of digital assets in transactions involving Illinois-based customers and digital asset brokers. Covered activities include spot trading, crypto-to-fiat conversions, stablecoin transactions, crypto swaps, certain derivatives settlements, and cross-chain bridging. Notably, NFTs are excluded from the tax. Most DeFi transactions are exempt unless users pay protocol fees considered valuable consideration; standard network and liquidity provider fees do not trigger the tax. Transfers from centralized exchanges to self-custody wallets and crypto bridging may be taxed if intermediaries charge fees. Direct peer-to-peer transfers without a broker and without consideration are not subject to the tax. The Illinois Department of Revenue is accepting public comments on the draft rules until October 30, 2026. Legal challenges have emerged, raising concerns about potential double taxation, and courts are expected to review the statutory basis of the tax before implementation.