Crypto tax in Illinois FY2027 budget is one step away from becoming law
The law, part of a budget plan passed by Illinois lawmakers, would put the burden of collecting a 0.2% tax on crypto transactions on a registered broker.
Illinois lawmakers have passed a budget plan that includes a 0.2% tax on cryptocurrency transactions, bringing the measure one step closer to becoming law. The legislation, part of the state's fiscal year 2027 budget, would require registered brokers to collect the tax on behalf of the state rather than placing the burden directly on individual crypto traders.
The proposed tax represents Illinois' latest effort to generate revenue from the growing cryptocurrency sector. As digital asset trading has expanded significantly in recent years, state governments across the United States have increasingly looked to crypto transactions as a potential source of tax revenue. The Illinois measure specifically targets the transaction process itself, creating a new revenue stream separate from existing capital gains taxes that apply to crypto profits.
The legislation could set a precedent for other states considering similar crypto taxation measures. Industry observers note that the broker-collection mechanism may prove more practical for enforcement than attempting to track individual transactions across multiple platforms. However, the additional cost burden could potentially impact trading volumes within Illinois or drive activity to platforms based in other jurisdictions.
The budget plan now requires approval from Governor J.B. Pritzker to become law. If signed, Illinois would join a small but growing number of states implementing direct taxes on cryptocurrency transactions, with the measure expected to take effect in the 2027 fiscal year.
Source: Cointelegraph
