Illinois Set to Begin Taxing Bitcoin, Crypto Transactions as Critics Slam 'Most Punitive' Tax

Illinois Governor J.B. Pritzker signed a new Digital Asset Tax Act into law as part of the state’s 2027 budget, creating a 0.2% tax on crypto activity such as transfers and purchases starting Jan. 1, 2027. The move could make Illinois the first U.S. state to impose a transaction-based tax on digital assets, triggering strong backlash from industry groups like the Crypto Council for Innovation, which called it the most punitive crypto tax in the country. Advocates warn the law could drive innovation and builders out of the state, while lawmakers reportedly expect it to raise up to $60 million next year. The policy is likely bearish for crypto adoption and trading activity in Illinois, though broader market impact may be limited geographically.