Illinois has become the first U.S. state to impose a standalone tax on digital asset transactions. Governor JB Pritzker signed SB 3019 into law in June, embedding the Digital Asset Tax Act (DATA) within the state’s $55.9 billion budget. Effective January 1, 2027, the legislation projects $60 million in annual revenue.
Unlike capital gains or sales taxes, DATA is a 0.2% privilege tax levied directly on brokers who exchange, transfer, or store digital assets for Illinois customers. The law applies to entities with a physical presence in the state or those generating over $100,000 in gross receipts from local clients. Traditional brokerages handling stocks and bonds remain exempt from this specific levy.
The measure has drawn sharp condemnation from legal experts and industry advocates. Renato Mariotti, a former federal prosecutor, criticized the lack of public debate, noting the tax was buried in the budget without standalone legislative scrutiny. The Digital Chamber and Illinois Blockchain Association labeled the act procedurally deficient and economically destructive, arguing it penalizes innovation and incentivizes businesses to relocate to more favorable jurisdictions.
This development follows the August 2025 enactment of the Digital Assets and Consumer Protection Act (DACPA), which established a regulatory framework for consumer safety. Critics argue that adding a punitive tax so soon after establishing regulations creates an uneven playing field. Legal challenges based on the Commerce Clause and equal protection principles are anticipated as the 2027 implementation date approaches.