Illinois agrees to delay new crypto transaction tax until July 2027

Illinois state officials and two cryptocurrency industry groups have jointly requested a six-month delay for the implementation of the state’s new digital asset transaction tax. An agreed motion filed in the Sangamon County Circuit Court on October 1 asks the judge to move the tax's effective date from January 1, 2027, to July 1, 2027.

The 0.2% tax, established under the Digital Asset Tax Act, applies to the value of certain digital asset business activities, including exchanges, transfers, and storage. The delay is intended to allow for the orderly briefing and adjudication of ongoing legal challenges without prejudicing the rights of either party.

Industry groups, including the Chamber of Digital Commerce, the Illinois Blockchain Association, and the Crypto Council for Innovation, are challenging the legality of the tax. Plaintiffs argue the measure violates the Illinois Constitution’s uniformity and due process clauses, as well as the U.S. Constitution’s Commerce Clause and the federal Internet Tax Freedom Act. The state maintains the tax is a valid statutory requirement for digital asset brokers.