ILLINOIS POSTS DRAFT RULES FOR ITS DIGITAL ASSET TAX — A PAID WITHDRAWAL FROM AN EXCHANGE TO YOUR OWN WALLET OWES 0.2% OF THE FULL VALUE — WALLET-TO-WALLET WITH NO BROKER OWES NOTHING — COMMENTS CLOSE OCTOBER 30

Illinois posted the draft rules for its new Digital Asset Tax on September 28, 2026. The tax is 0.2% of the value of the digital asset, it starts January 1, 2027, and the broker collects it. The Department of Revenue is taking comments until October 30.

Read Example 1. A customer pays an exchange a fee to move coins to a wallet he holds himself. The draft says: "Because the transfer is completed by the centralized exchange, a digital asset broker, for valuable consideration, the transfer would be subject to the tax." The tax is on the value of what moves, not on the fee. Pulling $100,000 of bitcoin into cold storage costs $200 on top of the withdrawal fee.

Example 3 is the other side. Two people with their own wallets send coins straight to each other. "Since neither transfer used a digital asset broker, neither transfer is subject to the tax." Miner fees do not count as payment to a broker either. The draft taxes the door out of the exchange and leaves the room outside it alone.

That makes the first withdrawal the most expensive thing an Illinois holder does with his keys, which is backward. The Chamber of Digital Commerce sued over the law on July 21, and a repeal bill, HB 5798, was filed in June. Neither has stopped the rules from being written. The cheapest withdrawal in Illinois is the one made before January 1. At the time of this writing, bitcoin was $83,906.