The Illinois Department of Revenue has released draft rules for the state’s 0.2% digital asset tax, scheduled to begin January 1, 2027. The agency announced the proposal on September 28, detailing how the already-enacted levy would apply to covered crypto services.
Under the draft rules, the Illinois crypto tax is calculated on the asset’s value when a covered transaction is completed, regardless of profit or loss. A taxable transaction involving $10,000 of crypto would therefore generate a $20 levy, with brokers responsible for collection.
Coverage requires an Illinois customer receiving exchange, transfer or storage services from a digital asset broker for a fee or other consideration. An exchange withdrawal to a self-custody wallet can qualify when the exchange charges a fee. Direct peer-to-peer transfers without a broker are excluded.
Stablecoins fall within the draft’s scope, while NFTs are excluded. DeFi transactions can become taxable when platforms charge protocol or operating fees. Fees paid solely to liquidity providers, miners or validators do not, by themselves, meet the consideration requirement.
Public comments are due October 30. The draft has not yet been filed with the Secretary of State or submitted to the Joint Committee on Administrative Rules. Separately, the Blockchain Association and Crypto Council for Innovation sought an injunction on September 9 to block the tax before implementation.
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