Illinois Agrees to Seek Crypto Tax Delay to July 2027

Published October 5, 2026, 05:01 UTC. Based on an agreed motion filed October 1, 2026, as reported by Bitcoin.com News and CryptoSlate.

Illinois officials have agreed with two crypto industry groups to ask a state court to delay the start of the state's 0.2% digital asset tax by six months, from January 1, 2027, to July 1, 2027. The request still needs a judge's approval.

What was filed

In an agreed motion filed October 1 in Sangamon County Circuit Court (Case No. 2026-MR-271), the Chamber of Digital Commerce, the Illinois Blockchain Association, Illinois Department of Revenue Director David Harris and Attorney General Kwame Raoul asked the court to postpone the tax's effective date, Bitcoin.com News reported. The parties said the delay would preserve the status quo and allow time for briefing and a decision on the legal issues without prejudicing either side.

The proposed injunction would remain in effect until July 1 unless the court modifies it. The agreement does not resolve the lawsuit, and both sides preserve their claims and defenses, according to Bitcoin.com News.

CryptoSlate reported that the court had not been confirmed to have entered the order as of October 4. The law remains in force, and the state is not conceding that it is unconstitutional. The parties also asked to move the state's deadline to respond to the lawsuit to November 13, CryptoSlate said.

How the tax works

The Digital Asset Tax Act, Article 3 of Public Act 104-0468, applies a 0.2% rate to the value of digital assets in qualifying transactions for Illinois customers, rather than to trading profits. Covered activity includes the exchange, transfer or storage of digital assets when the transaction is recorded on a blockchain and facilitated by a qualifying broker, Bitcoin.com News reported. Brokers can include centralized exchanges, some DeFi platforms that collect protocol fees, custodians, broker-dealers and payment processors. Retailers that accept crypto as payment are exempt from being treated as brokers.

According to CryptoSlate, brokers collect and remit the tax and can remain liable if they fail to collect it. If the tax is not charged, customers may have to calculate and pay it themselves by the 20th of the following month.

The legal challenge

The industry groups argue the law violates several provisions of the Illinois Constitution, as well as the U.S. Constitution's Commerce Clause and Fourteenth Amendment Due Process Clause, and that it is preempted by the federal Internet Tax Freedom Act. State officials dispute those claims, Bitcoin.com News reported. The Crypto Council for Innovation and the Blockchain Association filed a separate lawsuit in September.

What to watch

Two questions remain before year-end: whether the judge grants the agreed delay, and how the Department of Revenue changes its draft rules. Public comments on those rules are open through October 30, and the rules have not yet been filed with the Secretary of State or the Joint Committee on Administrative Rules, according to CryptoSlate. MABOnChain has not reviewed the court filing or a Department of Revenue notice directly.

This article is news reporting and is not investment advice.

Sources

• Bitcoin.com News, Illinois Agrees to Delay Rollout of 0.2% State Crypto Tax (Oct. 1, 2026)
• CryptoSlate, Illinois backs delay to crypto tax rule after months of industry pushback (Oct. 5, 2026)
• The Crypto Times, Illinois Delays Digital Asset Tax to July 2027 Amid Lawsuit (Oct. 1, 2026)