Illinois has added a new digital asset tax to its fiscal 2027 budget package, creating another state-level compliance question for crypto exchanges, custodians, wallet providers, and other businesses that serve Illinois customers.

What changed

The measure creates a 0.2% privilege tax on the value of digital asset business activity received by customers in Illinois. Tax advisers tracking the bill describe the obligation as applying to digital asset brokers and service providers, including companies involved in exchange, transfer, custody, or wallet services.

The tax is scheduled to take effect on January 1, 2027. PwC says the budget bill also includes a 10% targeted advertising services tax and a monthly social media platform fee, making the digital asset provision part of a broader package of new digital-economy taxes.

Why it matters

For crypto companies, the practical issue is scope. CoinDesk reported that the industry is pushing back because the language covers businesses transacting or storing crypto for customers in the state, while BDO warned that brokers doing business in Illinois should review receipts and state connections to determine whether they fall under the act.

The conservative read is that this is not just a tax on speculative trading. If implemented as written, it could force exchanges, transfer services, custodians, and wallet businesses to build Illinois-specific reporting and collection processes. The final impact will depend on state guidance, any legal challenge, and how regulators define covered digital asset activity before the January 2027 start date.