Illinois just became the first US state to slap a broad transaction-level tax on crypto. Governor JB Pritzker signed the Digital Asset Tax Act, known as DATA, into law, imposing a 0.2% privilege tax on digital asset business activities including exchanges, transfers, custody, and storage for Illinois customers.
The tax takes effect January 1, 2027. Industry groups estimate it will generate roughly $60 million annually for the state. Crypto industry leaders have been less diplomatic in their assessment, calling the legislation draconian.
What the tax actually covers
The law targets what it calls “digital asset brokers,” which is a broad category covering companies involved in cryptocurrency trading and management. If a business has a physical presence in Illinois or earns more than $100,000 in annual receipts from Illinois customers, it falls under the statute’s reach.
The expansive definition of covered assets includes Bitcoin, Ether, and a range of other digital assets. Activities subject to the 0.2% levy span exchanges, transfers, custodial services, and storage.
