Illinois Governor JB Pritzker signed Senate Bill 3019 on Tuesday, enacting a 0.2% tax on cryptocurrency transactions as part of the state’s $55.9 billion fiscal 2027 budget.
The measure is projected to generate more than $800 million in additional tax revenue.
How the tax works
The Digital Asset Privilege Tax Act takes effect January 1, 2027, and charges 0.2% of the value of the digital asset involved in each transaction.
Out-of-state brokers become subject to the rule once their Illinois sales reach $100,000.
The law also adds registration and reporting duties for brokers, and violations can be charged as a Class 3 felony.
The legislation bundles the crypto tax alongside new levies on digital advertising, sports betting, and social media.
Industry groups push back
The Crypto Council for Innovation (CCI) urged Pritzker to issue a line-item veto, warning the tax could drive builders and investment out of Illinois:
“This punitive structure would have a profound chilling effect on digital asset activity in Illinois.”
CCI argued that no comparable state tax applies to stocks, bonds, or derivatives, saying the law singles out crypto based on its underlying technology.
Chicago hosts major crypto and trading firms including Jump Crypto and Bitnomial, and industry groups fear the tax pushes such companies toward friendlier jurisdictions.
Legal challenges expected
a16z Head of Policy Miles Jennings compared the levy to taxing email.
NetChoice also urged Pritzker to veto the social media and advertising taxes, citing federal preemption.
Legal challenges now appear likely before the rules take effect in 2027.
