Illinois Governor Signs Budget Including 0.2% Crypto Transaction Tax

Jun 17, 2026

Illinois Governor J.B. Pritzker has signed a budget bill establishing a first-of-its-kind 0.2% "privilege tax" on all crypto transactions, effective Jan. 1, 2027. Industry groups like the Crypto Council for Innovation have condemned it as the "most anti-crypto law in the U.S.," arguing it will drive innovation out of the state and unfairly singles out digital assets compared to stocks or bonds.

Illinois crypto transaction tax

▪The "Digital Asset Privilege Tax Act," which is Article 3 of the bill, will take effect on January 1, 2027.
▪The tax is part of a larger package intended to close a budget gap and help raise over $800 million in new tax revenue for fiscal year 2027.
▪Illinois Governor J.B. Pritzker signed a $55.9 billion state budget bill (SB 3019) that includes a 0.2% "privilege tax" on crypto transactions.

Industry opposition arguments

▪The CCI warned the law will create an "unprecedented tax regime" that will drive innovation and builders out of Illinois.
▪Industry groups, including the Crypto Council for Innovation (CCI), have labeled the legislation as the "most anti-crypto law in the U.S."
▪The Digital Chamber also opposed the tax, arguing it would push existing blockchain and crypto companies out of the state.
▪The CCI compared the tax to "taxing correspondence because it is delivered by email rather than by post."

Impact on Illinois crypto companies

▪The tax framework contains no exemptions for common non-commercial activities, such as moving funds between personal wallets.
▪Out-of-state companies with sufficient customer activity in Illinois could also be impacted by the tax.
▪Illinois is home to several crypto companies, including Zero Hash, Jump Crypto, Bitnomial, and Apex Crypto.

Comparison to traditional finance taxation

▪Miles Jennings argued that the tax singles out crypto in a way that likely violates several federal laws.
▪Legal expert Miles Jennings stated there is no comparable state financial transaction tax on stocks, bonds, or derivatives anywhere in the country.
▪Illinois will become the only state to tax digital asset users regardless of their income, gains, or profits.