Illinois enacts 0.2% crypto tax, raising $60 million for state budget
In brief
- Illinois enacted 0.2% tax on crypto transactions and asset storage for businesses serving state residents
- Tax applies to firms with $100K+ gross receipts, effective January 1, 2027
- Governor Pritzker approved measure June 16 as part of $56 billion state budget
- Crypto industry called it one of the most anti-crypto laws in the U.S.
The Tax and Its Scope
The tax was added last-minute to Illinois' broader budget bill, which creates a roughly $56 billion budget for the 2027 fiscal year. The provision is broad. The tax law may cover digital money beyond crypto assets, such as electronic bank transfers, raising questions about its scope.
The tax takes effect on January 1, 2027. The Illinois Senate and House calendars indicate the legislature is out of session for the rest of the year, making legislative reversal unlikely before 2027.
Industry Response and Pathway Forward
The crypto industry pushed back hard. Miles Jennings, head of policy and general counsel with Andreessen Horowitz Crypto, called the new tax one of the most anti-crypto laws in the U.S. The Crypto Council for Innovation requested a line-item veto in a letter dated June 16, but Pritzker didn't grant it.
Change seems unlikely to come through the statehouse. One person following the process said the most likely pathway to changing or mitigating the tax would be through a lawsuit. That reflects the industry's frustration — and its limited political leverage in Illinois right now, despite past spending efforts.
The broader context matters. Stand With Crypto, backed by Coinbase, gave Stratton an F grade on digital assets, signaling the political headwinds the sector faces in the state. For now, the 0.2% tax is law.
