In June 2026, Illinois enacted the Illinois Digital Asset Tax Act (DATA) as part of Fiscal Year 2027 budget legislation (SB 3019), signed by Governor J.B. Pritzker. The act creates a new privilege tax on digital asset business activity conducted by digital asset brokers on behalf of Illinois customers, effective 1 January 2027. Illinois is the first US state to impose a direct, transaction-based tax specifically on digital asset activity.
DATA imposes a 0.2% rate on the value of digital asset business activity received by Illinois customers. It applies to digital asset brokers who maintain a place of business in Illinois, including remote brokers meeting a $100,000 Illinois gross receipts threshold. The term digital asset business activity covers the exchange, transfer, and custody of digital assets and wallet services. No equivalent privilege tax applies to equities, bonds, or derivatives under Illinois law, an asymmetry that industry groups have challenged on Dormant Commerce Clause grounds.
Cryptoasset exchanges, custodians, and wallet providers with Illinois customers must assess their exposure under the $100,000 nexus threshold and register for the privilege tax before 1 January 2027. Brokers operating across state lines must determine whether the Illinois nexus rules establish a taxable presence and model the economic impact of the 0.2% levy on their transaction volumes. Non-Illinois brokers with significant Illinois customer revenues must evaluate their obligations under the remote-broker gross receipts threshold.
Several industry groups have indicated they intend to challenge DATA on Dormant Commerce Clause grounds, arguing that singling out digital assets for transaction taxation when equivalent traditional instruments are not taxed creates unconstitutional discrimination against interstate commerce. No court has yet ruled on the act. The effective date of 1 January 2027 gives affected businesses approximately six months to prepare compliance systems or pursue legislative or judicial relief.
Licentium advises digital asset businesses on US state and federal regulatory compliance. If your firm needs to assess its exposure under the Illinois Digital Asset Tax Act or monitor similar legislative developments in other US states, we and our partner network can assist. Work we undertake includes digital asset tax nexus analysis, US state regulatory mapping, cryptoasset licensing support, and policy monitoring for emerging digital asset tax regimes.
Source: Illinois General Assembly, SB 3019, Illinois Digital Asset Tax Act, enacted June 2026