Illinois Proposes 0.2% Digital Asset Transaction Tax Effective 2027

The Illinois Department of Revenue has released draft regulations under the Digital Asset Tax Act, proposing a 0.2% tax on the value of digital asset transactions, effective January 1, 2027. The mandate applies to brokers and service providers, including out-of-state entities with over $100,000 in annual sales or services provided to Illinois residents. Public feedback is open until October 30 at 5:00 p.m. The tax is calculated based on the transaction value, which may impact market liquidity and high-frequency trading.