Illinois Crypto Tax Delayed Until July 2027 Pending Court Approval
Illinois has reached an agreement to postpone the implementation of its 0.2% Digital Asset Tax from January 1, 2027, to July 1, 2027. The decision, announced by The Digital Chamber on October 1, requires court approval to take effect. The state’s Department of Revenue Director David Harris and Attorney General Kwame Raoul, along with industry groups The Digital Chamber and the Illinois Blockchain Association, jointly filed the motion in Sangamon County Circuit Court.
The six-month delay aims to allow for a thorough legal review of the tax’s validity without affecting either party’s claims. The Digital Asset Tax Act, signed by Governor JB Pritzker in June 2026, imposes a 0.2% levy on crypto transactions by firms with over $100,000 in receipts, collected by digital asset brokers. The state had projected the tax could generate up to $60 million in its first year.
The agreement does not resolve the ongoing litigation. Industry groups argue the tax is unconstitutional, invalid under state law, and conflicts with the federal Internet Tax Freedom Act. Separate legal challenges from the Blockchain Association and Crypto Council for Innovation remain pending. Cody Carbone, CEO of The Digital Chamber, called the delay a significant victory but emphasized that the fight against the tax continues.