Illinois Agrees to Delay First-in-Nation Crypto Tax Until July 2027
The agreement was outlined in a joint motion filed in Sangamon County Circuit Court by the Illinois Department of Revenue and the Chamber of Digital Commerce. The filing seeks to delay the tax while the court considers the underlying legal issues.
Illinois Crypto Tax Faces Legal Challenge
The Digital Asset Tax Act was enacted as part of Illinois' fiscal 2027 budget and was originally scheduled to take effect on Jan. 1, 2027. The law imposes a 0.2% tax on the value of digital assets associated with certain digital asset business activity received by Illinois customers from digital asset brokers.
The Chamber of Digital Commerce challenged the law in July, arguing that Illinois' treatment of digital assets raises constitutional and federal legal questions. The organization sought to prevent the tax from taking effect while its claims are litigated.
The legal challenge argues, among other issues, that the law treats economically similar property differently based on the technology used to record or transfer ownership. The Chamber has also raised questions involving the federal Internet Tax Freedom Act.
Six-Month Delay Allows Litigation to Continue
The agreed motion would shift the tax's effective date to July 1, 2027, giving the parties additional time to brief and litigate the case. Bloomberg Law reported that the Illinois Department of Revenue and the Chamber said the delay would allow the court process to proceed while maintaining the existing status quo.
The postponement does not resolve the underlying legal challenge or repeal the tax. The court must approve the requested preliminary injunction before the revised date becomes operative.
The tax was enacted on June 16, 2026, making Illinois the first U.S. state to enact a tax specifically targeting digital asset business activity. Under the law, the 0.2% levy is collected by digital asset brokers on covered transactions.
The next major step is the court's consideration of the agreed request to move the implementation date to July 1, 2027, while the broader challenge to the law proceeds.
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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