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Crypto Industry Slams Illinois’ New Digital Asset Tax as ‘Most Punitive’ in U.S.
Illinois Governor JB Pritzker signed Senate Bill 3019 into law yesterday, making Illinois the first state in the country to impose a transaction-based tax on crypto. This move drew swift condemnation from crypto industry groups who had urged him to strike the provision before his pen hit the paper.
The Digital Asset Privilege Tax Act, tucked inside a 1,624-page revenue bill that forms part of Illinois’ $55.9 billion fiscal year 2027 budget, levies a 0.2% charge on the value of any digital asset involved in an exchange, transfer, custody, or wallet service conducted on behalf of an Illinois customer.
The tax takes effect January 1, 2027, and is projected to generate roughly $60 million annually — a fraction of the more than $800 million in new revenue the broader budget package is expected to produce.
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