Illinois Delays Crypto Tax Six Months Pending Court Approval

Illinois has agreed to push the start of its 0.2% Digital Asset Tax from Jan. 1, 2027 to July 1, 2027, under a joint filing with industry groups that still needs a judge’s approval.

The Digital Chamber announced the agreement in a post on X on Oct. 1. The stipulated motion was filed in Sangamon County Circuit Court by state officials and The Digital Chamber and the Illinois Blockchain Association, which sued the state’s Department of Revenue Director David Harris and Attorney General Kwame Raoul over the tax. Both sides asked the court for the same outcome, but the delay does not take effect until the judge signs off on it.

The filing said the six-month pause will “permit orderly briefing and adjudication of the underlying legal questions” without prejudicing either side’s claims.

What the delay buys businesses

Gov. JB Pritzker signed the Digital Asset Tax Act in June 2026 as part of the state’s 2027 budget. The law imposes a 0.2% levy on crypto activity by firms with more than $100,000 in receipts, collected by digital asset brokers. Lawmakers projected it would raise as much as $60 million in 2027, an estimate rather than booked revenue.

Under the act as written, brokers would have had to impose the tax starting Jan. 1 or face potential fines and prison time. The six-month delay removes that deadline for now, but it does not remove the obligation: if the court allows the tax to stand, the 0.2% levy still starts July 1, 2027.

A pause, not an end

The agreement does not settle the litigation. Industry groups argue the tax is unconstitutional, invalid under state law and preempted by the federal Internet Tax Freedom Act, and separate challenges from the Blockchain Association and Crypto Council for Innovation remain pending.

Digital Chamber CEO Cody Carbone called the delay a major win but said the fight continues. “A delay is not a repeal,” he said.