Illinois crypto tax delayed six months as industry fights in court

crypto tax delayed — The US state of Illinois has agreed to a six-month delay of a contentious 0.2% crypto tax, postponing its implementation from January 1, 2027 to July 1, 2027, pending court approval.

The delay was negotiated by crypto industry groups The Digital Chamber and the Illinois Blockchain Association with state officials. The agreement is intended to allow ongoing legal challenges against the tax to proceed without the immediate pressure of a January enforcement date.

The proposed tax, which targets digital asset purchases, has been a point of significant concern for the crypto industry in Illinois, with groups arguing it could stifle innovation and drive business out of the state. The legal battle over its validity will continue during the proposed delay period.

A judge must still formally approve the agreement to enact the six-month postponement. The outcome of the court case will ultimately determine whether the tax is permanently blocked or allowed to take effect next summer.