Illinois budget plan would place 0.2% crypto transaction tax collection on brokers

The fiscal 2027 budget measure also requires broker registration and would make noncompliance from Jan. 1 punishable as a Class 3 felony, pending Governor JB Pritzker's signature.

Summary

Illinois lawmakers passed a fiscal 2027 budget that includes a proposed 0.2% tax on cryptocurrency transactions to be collected by digital asset brokers. The measure, part of an amendment to the Digital Assets Privilege Tax Act, would also require brokers to register. Noncompliance from Jan. 1 could be treated as a Class 3 felony carrying two to five years in prison and fines of up to $25,000. The budget still requires Governor JB Pritzker's signature. By placing collection duties on intermediaries rather than individual market participants, the proposal follows a common tax-administration model used to improve compliance.

Terms & Concepts
  • digital asset brokers: Intermediaries that facilitate trades or transactions involving crypto and other digital assets
  • Digital Assets Privilege Tax Act: The Illinois measure being amended to impose tax collection and registration requirements on crypto brokers
  • Class 3 felony: A criminal offense category that, in this case, could carry prison time and fines for noncompliance