Illinois sets out proposed crypto tax rules

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Illinois has outlined how its planned 0.2% digital asset transaction tax could apply to stablecoins, DeFi and crypto transfers.

Draft rules from state tax officials would treat stablecoins as taxable digital assets but exclude NFTs. DeFi transactions would generally fall outside the tax unless users pay fees that qualify as taxable consideration.

Transfers involving crypto brokers could also be subject to the tax when fees are charged, including some moves from exchanges to self-custody wallets. The tax is scheduled to take effect on 1 January 2027, with comments accepted until 30 October.