Illinois Governor JB Pritzker signed Senate Bill 3019 on June 17 2026, enacting the Digital Asset Privilege Tax Act that imposes a transaction‑based levy on crypto activities within the state.
Legislative Context
The new statute is embedded in a 1,624‑page revenue bill that funds Illinois’s FY 2027 budget, which totals $55.9 billion. The legislation targets any exchange, transfer, custody, or wallet service involving a digital asset on behalf of an Illinois customer, applying a 0.2 % charge on the transaction value.
Tax Structure and Revenue Forecast
Effective January 1 2027, the tax is projected to generate approximately $60 million each year, representing a modest share of the broader budget package’s anticipated $800 million-plus in additional revenue. Unlike capital‑gains or income taxes, the levy triggers on the act of transacting, regardless of profit outcomes.
Industry Response
The Crypto Council for Innovation condemned the measure, labeling it the most punitive digital‑asset tax in the United States and warning of a chilling effect on blockchain activity in Illinois. Miles Jennings, Head of Policy and General Counsel at a16z Crypto, likened the tax to imposing extra fees on ordinary financial services, underscoring concerns among investors and market participants.