Crypto Tax in Illinois FY2027 Budget Is One Step Away from Becoming Law
Illinois lawmakers passed a budget bill that would add a 0.2% tax on crypto transactions, but it still needs the governor's signature.
Intelligence analysis by GPT-5.4 Mini
Illinois included a crypto tax in its FY2027 budget package, placing a 0.2% levy on transactions handled by registered digital asset brokers. The bill has passed the legislature and now awaits Governor JB Pritzker's signature, while industry groups are urging him to reject it.
Illinois lawmakers added a new fee to crypto trades, like taking a tiny cut every time something digital is bought or sold through certain middlemen. The plan is not final yet because the governor still has to sign it.
Analysis
What Illinois passed
Illinois lawmakers approved a 1624-page budget package for fiscal year 2027 that includes a crypto tax provision. The bill would impose a 0.2% tax on crypto transactions, and the burden of collecting it would fall on the “digital asset broker” that makes or facilitates the sale.
The proposal is described in the bill as a “privilege tax” under the Digital Asset Privilege Tax Act amendment. It also adds registration requirements for any entity acting as a digital asset broker in Illinois.
What happens next
The budget bill has cleared the Illinois General Assembly, but it is not law yet. It still needs Governor JB Pritzker’s signature. The article says Pritzker has made public comments suggesting he plans to sign it soon, but as of Friday morning he had not done so.
Pushback from the industry
Digital asset industry groups are objecting to the proposal. The Digital Chamber and the Illinois Blockchain Association sent a letter urging the state to reject the tax, saying it would be economically destructive and arguing there had been no meaningful stakeholder notice. The Digital Chamber also said on X that no other state has imposed a similar tax.
Enforcement and revenue
The bill includes serious penalties for brokers that fail to follow the rules from Jan. 1, including possible felony charges, prison time of two to five years, and fines up to $25,000. Lawmakers expect the tax to raise $60 million for the state.
The crypto tax effort comes after Pritzker signed an executive order on April 21 banning state employees from betting on prediction market event contracts, citing concerns about personal enrichment and access to nonpublic information.
Key points
- Illinois lawmakers passed a budget bill that includes a 0.2% tax on crypto transactions.
- The tax would be collected by a registered digital asset broker that facilitates the sale.
- The bill still needs Governor JB Pritzker's signature before it becomes law.
- Industry groups, including The Digital Chamber and the Illinois Blockchain Association, have urged the state to reject it.
- Lawmakers expect the measure to generate $60 million for Illinois.
If Governor Pritzker signs the bill, Illinois would have a defined tax and registration framework instead of uncertainty. Lawmakers also expect the measure to bring in about $60 million for the state budget.
The tax would add a new cost for crypto users and brokers in Illinois, and industry groups say it could be economically harmful. The bill also creates felony risk and fines for brokers that do not comply with the new rules.
