Illinois Delays 0.2% Crypto Tax to July 2027 Amid Legal Challenge

The state of Illinois has agreed to delay the implementation of its 0.2% digital asset transaction tax by six months, moving the effective date from January 1, 2027, to July 1, 2027. The agreement, reached between the Digital Chamber, the Illinois Blockchain Association, and the state government, is pending approval from the Sangamon County Circuit Court. This extension provides the crypto industry with additional time to challenge the constitutionality and enforceability of the Digital Asset Tax Act in court. Industry groups argue that the tax, which applies to businesses with over $100,000 in annual revenue, is discriminatory and potentially preempted by the federal Internet Tax Freedom Act (ITFA).