Illinois authorities have postponed the introduction of a 0.2% tax on digital assets by six months, moving the effective date from January 1 to July 1, 2027, following lawsuits and industry pressure.

In a motion filed in the Sangamon County Circuit Court, the industry group Digital Chamber stated that the parties had agreed to delay the effective date to allow for an orderly review of legal issues without prejudicing the positions of the participants. In July, the organization filed a lawsuit against state Attorney General Kwame Raoul and Department of Revenue official David Harris, arguing that the tax was "embedded in the state budget" without discussion or public feedback.

The Tax Is Included in the Fiscal Year 2027 Budget

The 0.2% rate was added to a Senate bill as part of Illinois' fiscal year 2027 budget, which Governor JB Pritzker signed in June. Under the law, crypto brokers were required to begin collecting the fee starting January 1, 2027; noncompliance could result in fines and imprisonment.

Digital Chamber Will Continue to Seek Repeal

Digital Chamber CEO Cody Carbone called the delay a "significant victory" for the industry, emphasizing that "a delay is not a repeal," and the organization will continue to seek a court ruling declaring the tax unlawful.

CCI and Blockchain Association Also Challenge the Tax

Separate lawsuits from the Crypto Council for Innovation and Blockchain Association were filed in August. The associations are challenging the tax on constitutional grounds and sought a preliminary injunction to block its implementation from January 1, 2027. Their status remained unclear at the time the six-month delay was agreed upon.