Illinois Crypto Tax Delay Sought as Industry Groups Push Back

Illinois officials have joined crypto industry groups in seeking a six-month delay to the state's digital-asset tax. The agreed motion, filed on October 1 in Sangamon County, asks a judge to postpone the levy's January 1 start until July 1, 2027, while a constitutional challenge brought by The Digital Chamber and the Illinois Blockchain Association proceeds.

Revenue Director David Harris and Attorney General Kwame Raoul joined the request, even as the state continues to dispute the industry groups' claims against the law. If granted, the injunction would temporarily spare brokers from collecting the tax and defer corresponding liabilities for covered customers.

The law remains in force, and the joint filing does not concede that it is unconstitutional or seek its repeal. Instead, both sides would preserve their legal positions while delaying collection as the lawsuit and the state's rulemaking process continue.

The Illinois Digital Asset Tax imposes a 0.2% levy on the value of digital assets involved in certain covered transactions rather than on investors' trading profits. Brokers are responsible for collecting and remitting the tax and can remain liable when they fail to collect it.

Customers face a separate fallback obligation: if the tax is not charged, they may have to calculate and pay the amount themselves by the 20th of the following month.