Illinois to become first US state to impose digital asset transaction tax, expected to take effect in 2027

Odaily reports that Illinois has become the first state in the United States to impose a tax on digital asset transactions. Governor J.B. Pritzker signed SB 3019, which includes the Digital Asset Tax Law, levying a 0.2% business tax on brokers who trade, transfer, or custody digital assets for clients within the state. The tax is expected to take effect on January 1, 2027, and is projected to generate approximately $60 million in annual revenue for the state government.

The tax targets business activities rather than profits, and traditional securities brokers in Illinois do not bear a similar tax burden. Former federal prosecutor Renato Mariotti criticized the tax for being embedded in the budget without sufficient public debate. The Digital Chamber of Commerce and the Illinois Blockchain Association jointly oppose the measure, calling it "unsound in substance, flawed in process, and economically destructive." (cryptobriefing)