Illinois Delays 0.2% Crypto Tax Amid Lawsuit

Illinois will postpone implementation of its 0.2% digital asset tax from Jan. 1 to July 1, 2027, under an agreement in a lawsuit challenging the law.

The delay was disclosed Thursday in a filing with the Circuit Court of Sangamon County. The agreement gives the court and the parties more time to address the legal issues without affecting their claims or defenses.

The Digital Chamber, a crypto and blockchain advocacy group, sued Illinois Attorney General Kwame Raoul and Illinois Department of Revenue official David Harris in July. The organization argued that lawmakers added the tax to the state budget without sufficient debate or public feedback.

The tax was included in a Senate bill for Illinois’ fiscal 2027 budget, which Gov. JB Pritzker signed in June. Under the law, crypto brokers would have been required to collect a 0.2% tax on digital asset transactions beginning Jan. 1, 2027. Brokers that failed to comply could have faced fines and imprisonment.

Digital Chamber CEO Cody Carbone described the delay as a win for the crypto industry while indicating that the group would continue challenging the tax. “A delay is not a repeal,” Carbone said. “The job isn’t done, and we won’t stop until this tax is struck down for good.”

The Digital Chamber’s case is separate from lawsuits filed in August by the Crypto Council for Innovation and the Blockchain Association. The groups challenged the tax on constitutional grounds and sought a preliminary injunction to block its implementation on Jan. 1. The status of their case was unclear after the agreement to delay the tax.