Illinois has agreed to delay its controversial Digital Asset Tax from January 1, 2027 to July 1, 2027, according to a joint motion filed in Sangamon County Circuit Court. The postponement requires court approval.
The Digital Chamber and the Illinois Blockchain Association filed the motion as part of their ongoing lawsuit challenging the tax's constitutionality and enforceability. Governor JB Pritzker signed the Digital Asset Tax Act in June as part of the state's 2027 budget.
Tax Details and Scope
The law imposes a 0.2% levy on cryptocurrency activity in the state, including purchases and transfers. Digital asset brokers such as major exchanges would collect the tax. Lawmakers estimated the tax could raise approximately $60 million in 2027.
Critics have focused on the tax's broad application, noting it affects users regardless of whether they realize any financial gain from their transactions.
Ongoing Legal Challenges
The delay does not resolve the underlying litigation. The Digital Chamber and Illinois Blockchain Association continue to challenge whether the tax is constitutional and enforceable.
The Blockchain Association and Crypto Council for Innovation are pursuing a separate legal challenge. In September, they asked the court to block the tax, arguing that firms were already spending millions of dollars to build compliance systems without clear guidance from the state.
Federal Development
Meanwhile, the House Ways and Means Committee advanced the Digital Asset Tax Certainty Act, which would eliminate gain-or-loss calculations on qualifying network fees of $10 or less, starting in 2028.
