Bitcoin in Illinois: what to know
Illinois limits crypto ATM (kiosk) purchases: $2,500/day new customers. Crypto gains are taxed under Illinois's flat 4.95% income tax. The state does not accept crypto for tax payments.
Bitcoin has one price in US dollars across the country: the price on this page is the same as on the bitcoin price in the United States page, where federal tax rules are covered in full. What differs in Illinois is state law and tax, explained below.
Crypto ATMs in Illinois
The Digital Asset Kiosk Act (SB 2319, signed August 18, 2025) requires operators to register with IDFPR and report kiosk locations. It caps fees at 18% and requires full refunds for scammed new customers. Scammers often tell victims to pay through crypto ATMs: no government agency, bank or utility asks for payment in bitcoin.
Buying bitcoin in Illinois
Under the Digital Assets and Consumer Protection Act (SB 1797, 2025), exchanges and other digital-asset businesses must register with IDFPR by July 1, 2027, and meet capital, custody and disclosure standards. Buying bitcoin carries no sales tax; you pay the exchange's spread and fees.
Tax on bitcoin in Illinois
Crypto gains are taxed under Illinois's flat 4.95% income tax. The state does not accept crypto for tax payments. Federally, the IRS treats bitcoin as property: selling, trading or spending it is a taxable event, with short-term gains (held a year or less) taxed as ordinary income and long-term gains at 0%, 15% or 20%; bitcoin received as pay or from mining is income. Exchanges and other custodial brokers report sales on Form 1099-DA: gross proceeds for sales from 1 January 2025, and cost basis for many sales from 1 January 2026. Every Form 1040 asks whether you received or disposed of a digital asset.
State bitcoin reserve
A Strategic Bitcoin Reserve bill (HB 1844) was introduced in 2025 but not enacted.
Other crypto laws in Illinois
Illinois was one of the lead states in the October 2026 Coinme kiosk settlement.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.