Illinois proposes 0.2% tax on digital asset services

• Illinois has proposed a 0.2% tax on qualifying digital asset services from January 1, 2027.
• The draft covers exchanges, transfers and storage involving Illinois customers and digital asset brokers.
• The rules also address stablecoins, DeFi platforms, NFTs and digital asset payment processors.

Illinois has proposed a 0.2% tax on qualifying digital asset services starting January 1, 2027.

The draft rules cover exchanges, transfers and storage when Illinois customers pay brokers for those services.

The tax would apply when an Illinois customer receives broker services for valuable consideration.

The proposal sets the tax at 0.2% of the asset's value when the service occurs.

Stablecoins fall within the Act, while NFTs remain specifically excluded from its definition.

DeFi transactions would generally escape the tax unless platforms charge taxable protocol fees.

Retailers accepting digital assets would not qualify as brokers or charge the tax.

The proposed rules would begin applying on January 1, 2027, if adopted.