Six-month reprieve for crypto tax in Illinois

Six-month reprieve for crypto tax in Illinois. The state agreed to push back its 0.2% levy from Jan. 1 to July 1, 2027. The agreement is contained in a joint motion filed Thursday, Oct. 1, in Sangamon County Court. The judge still has to validate it.

The Digital Chamber and the Illinois Blockchain Association obtain this delay, but their action against the law continues.

According to Decrypt, the parties filed the joint motion on Thursday, October 1. It brings together the two complainant associations and state officials. Among them are David Harris, director of the Department of Revenue, and Attorney General Kwame Raoul. The text sets the new date of entry into force as July 1, 2027. However, the court must still approve this agreement.

Cody Carbone, boss of the Digital Chamber, says he is satisfied that Illinois has accepted this delay, reports CoinDesk. According to him, businesses and users gain respite from costly compliance obligations.

The delay does not end the crypto tax dispute in Illinois. The associations consider the law unconstitutional. They also say it is contrary to the federal Internet Tax Freedom Act, which regulates the taxation of Internet access. Governor JB Pritzker signed this text, the Digital Asset Tax Act, into law in June 2026.

The Crypto Council for Innovation and the Blockchain Association are conducting another procedure, which is still pending, according to The Block. On September 9, these two groups called for a temporary suspension of the tax. They cited the cost of compliance during the trial.

The 0.2% crypto tax targets purchases and transfers of digital assets. Brokers collect it. According to CoinDesk, it concerns companies that exceed $100,000 in revenue. It covers all operations as well as asset custody services.

Illinois elected officials estimate the proceeds from the crypto tax at $60 million in 2027, according to Decrypt.