Illinois Delays Digital Asset Tax After Six-Month Injunction Request

The Illinois state government has agreed to delay its incoming digital asset tax by six months in response to a lawsuit filed by crypto industry groups. The Digital Asset Tax Act, set to take effect on January 1, 2027, imposes a 0.2% tax on certain digital asset transactions involving a fee.

The delay was requested through an agreed motion submitted by the state and plaintiffs, which includes the Digital Chamber and Illinois Blockchain Association, to Sangamon County Circuit Court. If approved, enforcement of the tax would begin on July 1, 2027.

The groups argue that the law unfairly singles out digital assets for taxation, potentially affecting businesses and users outside Illinois, and interfering with interstate trade. They also claim that the law conflicts with federal rules aimed at preventing discriminatory online commerce taxation.