Illinois officials agree to six-month delay on crypto transaction tax
CIE News ·
Illinois authorities and industry groups requested a court order delaying the state's 0.2% digital asset tax until July 1, 2027, as a constitutional lawsuit proceeds.
Illinois revenue officials and Attorney General Kwame Raoul joined industry groups on October 1, 2026, in asking a state court to delay the rollout of the Digital Asset Tax Act until July 1, 2027. According to Decrypt and ambcrypto.com, the stipulated motion filed in Sangamon County Circuit Court would stay the 0.2% levy originally set to take effect on January 1, 2027, subject to judicial approval.
The delay stems from a constitutional challenge brought by The Digital Chamber and the Illinois Blockchain Association. As reported by ambcrypto.com, the plaintiffs argue the levy discriminates against digital assets compared to similar financial transactions and violates federal interstate commerce protections. The tax, designed to generate up to $60 million in 2027, applies to crypto purchases and transfers collected by exchange brokers.
While state officials have agreed to the temporary enforcement pause, they have not conceded that the law is invalid, ambcrypto.com reported. Under the procedural timeline, Illinois officials must file their response to the amended complaint by November 13, 2026.