A new law approved in Illinois will impose a tax on commercial services involving digital assets. Brokers providing such services will be responsible for collecting and remitting the tax.
Illinois lawmakers approved new legislation governing the taxation of digital services and digital assets. Among other provisions, the law introduces a 0.2% tax on cryptocurrency transactions, calculated based on the value of the asset involved in the transaction. The new tax rules will take effect on January 1, 2027. Revenue generated from the tax will be allocated to the state’s general fund.
The legislation specifically states that the tax does not apply to cryptocurrency ownership itself. Instead, it covers exchange, transfer, custody, and other commercial services related to digital assets, defined as digital asset business activity. Under the law, a digital asset broker is any person or entity providing such services to customers in Illinois. The responsibility for collecting the tax falls on the broker that executes or processes the transaction.
The legislation establishes specific requirements for companies providing digital asset services within the state:
- a broker is considered to be conducting business in Illinois if a company or individual service provider operates remotely and generates at least $100,000 annually from customers located in the state;
- once that threshold is exceeded, the broker must collect the tax, remit it to the state, and file the required reports;
- threshold reviews will be conducted quarterly at the end of March, June, September, and December.
The bill further emphasizes that the tax obligation rests with the broker and not solely with the purchaser of the service. If the tax is not collected at the time of sale, the liability to pay it remains in effect. In addition, all transactions must be electronically recorded, supported by monthly reporting, and accompanied by documentation confirming the location of the transaction and the tax calculation.
The development comes as digital asset regulation continues to advance at the state level alongside federal initiatives such as the GENIUS Act and other legislative proposals. Wyoming officially launched the first state-issued stablecoin in U.S. history, Alabama granted decentralized autonomous organizations (DAOs) formal legal status, and Louisiana residents gained the ability to use cryptocurrency to pay for government services.
