Illinois Seeks Six-Month Delay in Enforcing 0.2% Crypto Tax

Illinois is seeking a six-month delay in enforcing its 0.2% crypto tax, which was originally set to take effect on January 1, 2027. The state and two crypto industry groups, the Digital Chamber and the Illinois Blockchain Association, have jointly asked a state court to delay the tax's enforcement until July 1, 2027.

The agreed motion, filed in Sangamon County Circuit Court on October 1, requests a preliminary injunction to change the effective date. This would pause the enforcement of the tax for six months while the legal challenge continues. The court still needs to approve the new date for it to take effect.

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

The Illinois crypto tax applies to any qualifying services, including digital asset exchange, transfer, and storage. It covers digital asset brokers, who must impose the tax as per the statutory requirement. The effective date for the tax is set as January 1, 2027, unless the court grants relief on the request.