Updated October 23, 2025
Capital Gains: 4.95%Income Tax: 4.95%Quick Facts: Illinois, United States Crypto Taxes
Capital Gains Tax
4.95%Income Tax Rate
4.95%Tax Summary
Illinois treats cryptocurrency as property for tax purposes, similar to federal guidelines. Crypto transactions are subject to state income tax at a flat rate. Residents must report crypto income and gains on their state tax returns.
Capital Gains Tax
4.95%- Crypto capital gains are classified as ordinary income in Illinois.
- Illinois taxes capital gains at the flat state income tax rate of 4.95% with no separate capital gains tax.
- No specific exemptions or thresholds for crypto gains beyond general income deductions.
- Gains are calculated based on federal adjusted gross income, with state adjustments possible.
- Illinois taxes capital gains at the flat state income tax rate of 4.95% with no separate capital gains tax.
- No specific exemptions or thresholds for crypto gains beyond general income deductions.
- Gains are calculated based on federal adjusted gross income, with state adjustments possible.
Income Tax
4.95%- Mining income is taxed as ordinary income at the time of receipt in Illinois.
- Staking rewards are treated as ordinary income when earned or received.
- Illinois applies its flat 4.95% income tax to all crypto-related income.
- Income must be reported based on fair market value in USD at the time of receipt.
- Staking rewards are treated as ordinary income when earned or received.
- Illinois applies its flat 4.95% income tax to all crypto-related income.
- Income must be reported based on fair market value in USD at the time of receipt.
Reporting Requirements
- Report all crypto income and gains on Illinois state tax returns if you file federal returns or meet income thresholds.
- Use Form IL-1040 for individual income tax filing.
- Key deadline is April 15, or the federal due date if extended.
- Use Form IL-1040 for individual income tax filing.
- Key deadline is April 15, or the federal due date if extended.
Special Notes
- Illinois does not impose sales tax on cryptocurrency transactions treated as currency.
- Recent guidance aligns with IRS on crypto reporting, including Form 1099 requirements.
- Consult a tax professional for complex transactions like NFTs or DeFi.
- Recent guidance aligns with IRS on crypto reporting, including Form 1099 requirements.
- Consult a tax professional for complex transactions like NFTs or DeFi.
Other US States
Compare state-level crypto tax differences across the United States.
Alabama
CG: 2-5%Income: 2-5%
Alaska
CG: 0%Income: 0%
Arizona
CG: 2.5%Income: 2.5%
Arkansas
CG: Varies (0% - 4.9%)Income: Varies (0% - 4.9%)
California
CG: 1-13.3%Income: 1-13.3%
Colorado
CG: 4.4%Income: 4.4%
Connecticut
CG: 3-6.99%Income: 3-6.99%
Delaware
CG: 0% - 6.6%Income: 0% - 6.6%
Florida
CG: 0%Income: 0%
Georgia
CG: 1-5.75%Income: 1-5.75%
Hawaii
CG: 1.4% - 11%Income: 1.4% - 11%
Idaho
CG: 0-5.8%Income: 0-5.8%
Indiana
CG: 3.05% state + 0-3.38% countyIncome: 3.05% state + 0-3.38% county
Iowa
CG: Varies (4.40% - 6.00%)Income: Varies (4.40% - 6.00%)
Kansas
CG: 3.1-5.7%Income: 3.1-5.7%
Kentucky
CG: 4.5%Income: 4.5%
Louisiana
CG: 1.85% - 4.25%Income: 1.85% - 4.25%
Maine
CG: 5.8% - 7.15%Income: 5.8% - 7.15%
Maryland
CG: Varies (2% - 5.75% state + 1.75% - 3.2% local)Income: Varies (2% - 5.75% state + 1.75% - 3.2% local)
Massachusetts
CG: 5-12%Income: 5%
Michigan
CG: 4.25%Income: 4.25%
Minnesota
CG: 5.35% - 9.85%Income: 5.35% - 9.85%
Mississippi
CG: 0-5%Income: 0-5%
Missouri
CG: 1.5-5.3%Income: 1.5-5.3%
Montana
CG: 1%-6.9%Income: 1%-6.9%
Nebraska
CG: 2.46% - 6.64%Income: 2.46% - 6.64%
Nevada
CG: 0%Income: 0%
New Hampshire
CG: 0%Income: 0%
New Jersey
CG: 1.4% - 10.75%Income: 1.4% - 10.75%
Illinois Crypto Tax FAQ
Illinois treats cryptocurrency as property for tax purposes, similar to federal guidelines. Crypto transactions are subject to state income tax at a flat rate. Residents must report crypto income and gains on their state tax returns.
The state-level capital gains treatment in Illinois is currently listed as 4.95%.
- Report all crypto income and gains on Illinois state tax returns if you file federal returns or meet income thresholds.
Compare With Other Countries
Disclaimer: This information is AI-generated and for educational purposes only. Tax laws are complex and subject to change. Always consult with a qualified tax professional for advice specific to your situation.