Illinois to levy income and sales taxes on Bitcoin and crypto transactions, drawing “most punitive” criticism

Illinois is poised to begin taxing Bitcoin and other crypto transactions through both income and sales taxes, positioning itself as the first U.S. state to broadly tax on-chain and off-chain crypto activity, according to Decrypt. The policy requires taxpayers to self-report gains from crypto purchases and sales. It also treats crypto payments as taxable sales transactions. Critics have labeled it the country’s “most punitive” crypto tax, while the state has yet to publish an exact effective date or detailed implementation rules.