Illinois authorities and cryptocurrency sector entities asked the court to postpone the effective date of the new state tax on digital assets from January 1 to July 1, 2027. The postponement still depends on court approval.
Provided for in the Digital Asset Tax Act, the charge is 0.2% on the value of the digital asset related to certain activities provided to clients in the state. The remittance is the responsibility of the broker or intermediary responsible for the transaction.
The rule covers services such as exchange, transfer, and storage of digital assets. The charge applies to the value of the asset involved in the activity covered by the law, and not to any profit obtained by the investor.
The Digital Asset Tax Act is part of Public Act 104-0468, approved by Governor JB Pritzker on June 16, 2026, and originally provided for the collection to begin in January 2027.
Collection remains under legal dispute
The Digital Chamber and the Illinois Blockchain Association are challenging the legislation in court. The entities argue that the tax creates discriminatory treatment for digital asset transactions and question its compatibility with state and federal constitutional provisions.
The state agreed to keep the collection suspended for another six months while the case proceeds. The postponement does not repeal the tax or end the dispute over its legality. If the court approves the request, the new start date will be July 1, 2027.
The Illinois Department of Revenue continues preparing the regulations and opened a public comment period on the rules until October 30, 2026.
