Illinois Governor JB Pritzker signed Senate Bill 3019 into law on June 16, 2026, making Illinois the first U.S. state to impose a transaction-based tax on digital assets. The Digital Asset Privilege Tax Act, embedded in a 1,624-page revenue bill, levies a 0.2% charge on the value of any digital asset exchanged, transferred, held in custody, or moved through wallet services for Illinois customers. The tax takes effect January 1, 2027.
The tax applies to exchanges, custodians, wallet providers, and firms transmitting assets between accounts. Unlike capital gains or income taxes, the levy does not require a profit; it triggers on the act of transacting itself. Brokers must register with the Illinois Department of Revenue and file monthly reports. Out-of-state brokers with annual receipts of $100,000 or more must register. Failure to register carries penalties up to $25,000 in fines and a Class 3 felony conviction carrying 2 to 5 years in prison.
The state projects $60 million in annual revenue from the crypto tax as part of a broader budget package generating $800 million in new revenue. Illinois’ fiscal year 2027 budget totals $55.9 billion.
Industry pushback intensifies
The Crypto Council for Innovation, a global industry alliance, called SB 3019 “the most punitive digital asset tax in the country” and warned it would have “a profound chilling effect on digital asset activity in Illinois.”
Miles Jennings, Head of Policy and General Counsel at a16z Crypto, criticized the tax’s structure. “Charging customers extra for receiving an email rather than a letter,” Jennings said, amounts to “singling out the technology used to deliver a transaction rather than the substance of the transaction itself.”
No comparable state financial transaction tax exists for stocks, bonds, or derivatives. CCI argued the law arrived during marketplace disruptions stemming from Illinois’ own Digital Assets and Consumer Protection Act.
Chicago crypto hub implications
Chicago is home to prominent crypto firms including Bitnomial, operator of the first U.S. leveraged retail spot crypto exchange, and Jump Crypto. The tax’s impact on these firms and other Chicago-based digital asset businesses remains unclear.
SB 3019 also contains social media and digital advertising taxes that face potential legal challenges over federal preemption and First Amendment concerns. The revenue bill’s complexity and breadth suggest broader fiscal restructuring beyond the crypto sector.
Brokers must list the tax as a separate line item on customer bills beginning in the new year.
