Illinois Legislature Passes Budget With Proposed 0.2% Crypto Transaction Tax

The Illinois state legislature has passed a fiscal year 2027 budget that includes a provision to levy a 0.2% tax on cryptocurrency transactions, to be collected by digital asset brokers. According to ChainCatcher, the measure is described as a “privilege tax” and is part of an amendment to the Digital Asset Privilege Tax Act, which would also require any digital asset broker operating in Illinois to register. Starting January 1, brokers that fail to comply could be charged with a Class 3 felony, facing two to five years in prison and fines of up to $25,000. The budget passed the legislature on Monday but still requires Governor JB Pritzker’s signature to take effect. Pritzker has publicly said he plans to sign the bill as soon as possible, but had not signed it as of Friday morning. Lawmakers estimate the crypto tax could generate $60 million in revenue for the state.