Illinois Crypto Tax Delayed by Six Months as Court Challenge Continues

Illinois and two crypto industry groups have jointly asked a state court to delay the state's 0.2% crypto tax for six months. The proposed change would move enforcement from January 1, 2027, to July 1, 2027.

An agreed motion was filed in Sangamon County Circuit Court on October 1, asking the judge to enter a preliminary injunction. Court approval is still required before the new date takes effect.

The Digital Chamber and the Illinois Blockchain Association sided with state officials in the request for the pause. The filing cannot resolve the dispute regarding the legality of the crypto tax. Each side will continue to pursue their respective arguments.