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Illinois Governor J.B. Pritzker has signed SB 3019 into law. The measure creates the first state-level crypto tax in the United States, setting a 0.2% levy on digital assets and taking effect in January 2027.
The tax sits inside Article 3 of Illinois’ fiscal year 2027 budget. That budget totals USD 55.9 billion and includes more than USD 800 million in new tax revenue. Illinois also passed the Digital Assets and Consumer Protection Act in 2025.
The Digital Asset Privilege Tax Act places the charge on digital assets received by Illinois customers. It covers purchases, holdings, transfers, and custody. The law also applies to transfers between a user’s own accounts.
Registered brokers must collect the tax. Users do not pay it directly. Instead, the broker becomes the taxable entity and remits the charge to the state.
For out-of-state brokers, the law applies to out-of-state brokers that generate at least USD 100,000 in annual revenue from Illinois customers. Firms below that level fall outside the duty. Those above it must identify Illinois customers and calculate the levy for each digital asset received.
The law covers exchanges, wallet providers, custodians, and transfer services. It does not limit the levy to sales. It also applies to holding, transfer, and custody activities through registered brokers.
That scope places major pressure on routine platform activity. Moving funds without a sale can still trigger the charge if the transfer runs through a platform. The law does not create an exception for private movements.
The expected annual revenue from the levy stands at about USD 60 million. Illinois firms such as Zero Hash, Jump Crypto, Bitnomial, and Apex Crypto may face the strongest impact. These companies handle many of the transaction types now covered by the tax.
The Digital Chamber and the Illinois Blockchain Association opposed the plan before its passage. They warned in a joint letter that the measure was substantively untenable, procedurally flawed, and economically destructive. Pritzker did not remove the tax through a line-item veto.
According to reports, the budget structure limited that option. A selective veto would have affected the balance of the overall spending plan. As a result, the tax provision remained intact.
The law also carries penalties for violations. Reports say it includes prison sentences of two to five years and fines of up to USD 25,000. That penalty range places the levy among enforceable state obligations rather than a simple fee.
Read More: Clarity Act Boosts Crypto Rules While Tax Reporting Remains Messy
The move also arrives as federal lawmakers discuss a national digital asset framework through the Clarity Act. Illinois has taken a separate path. No other state has adopted a similar transaction tax so far.
For platforms that operate across state lines, the new rule adds another layer of compliance. Firms would need to map Illinois customers and apply a separate tax logic inside their systems. Illinois now becomes the first state to test that model at scale.
Illinois has signed SB 3019 into law, creating the first state crypto tax in the United States. The 0.2% levy will start in January 2027 and apply through registered brokers to purchases, transfers, custody, and holdings. The move brings new compliance demands and fresh debate.
