Illinois Is About to Tax Crypto — Here's What That Means for Your Portfolio
67d ago · 1 source
Illinois is on the verge of passing a cryptocurrency tax as part of its FY2027 budget, with the measure reportedly just one legislative step away from becoming law. If enacted, it would make Illinois one of the first U.S. states to implement a state-level crypto-specific tax. The move signals a growing trend of states looking to generate revenue from the expanding digital asset economy.
WHY IT MATTERS
Think of this like when states started adding sales tax to online purchases — at first only a few did it, but eventually most followed. Illinois is essentially saying, 'If you're making money from crypto, we want a cut at the state level too.' Right now, you already owe federal taxes on crypto gains (just like stocks), but this would add an extra layer of state-specific crypto taxation on top of that. For everyday crypto holders, this could mean higher tax bills if you live in Illinois. For the broader crypto world, it matters because other states might copy this approach, making it more expensive to trade or hold crypto depending on where you live.
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