Illinois released draft rules implementing its Digital Asset Tax Act that would impose a 0.2% tax on the value of digital asset transactions starting Jan. 1, 2027, regardless of profit or loss. The draft, proposed Sept. 25, 2026, clarifies treatment of stablecoins, DeFi, crypto bridges and self-custody transfers: stablecoins are taxable, NFTs are excluded, and bridging via a broker for consideration is treated as exchange activity.
DeFi transactions are generally exempt unless users pay fees deemed “valuable consideration” such as protocol fees; network fees and swap fees paid solely to liquidity providers would not trigger the tax. The Illinois Department of Revenue has not yet filed the rules with the Secretary of State or submitted them to the Joint Committee on Administrative Rules and is accepting comments through Oct. 30.