Illinois Crypto Tax Delay Extends to July 2027

Illinois has agreed with crypto industry groups to seek a six-month delay to the Illinois crypto tax, moving the proposed enforcement date from 1 January to 1 July 2027. The joint court motion requests a preliminary injunction while the legal challenge continues, so the delay is not a final ruling on whether the tax is lawful. The 0.2% Illinois crypto tax would apply to businesses with annual revenue above $100,000 and certain broker-related digital asset activities, including exchange, transfer and custody services. Industry groups say the original deadline could require millions of dollars in compliance spending. The proposed tax would cover transaction activity rather than only profitable trades. Draft rules suggest stablecoins may be included, while NFTs may be excluded. Exchange-to-personal-wallet transfers could be taxable when a fee is charged, while direct transfers between personally controlled wallets may receive different treatment. Illinois will accept comments on the draft rules through 30 October. Separately, the US House Ways and Means Committee approved the Digital Asset Tax Certainty Act in a 38–5 vote. The bill would generally prevent gains or losses from being recognised on eligible digital assets used to pay qualifying network or transaction fees of up to $10. It still requires approval by both chambers of Congress. For crypto traders, the Illinois crypto tax delay reduces near-term compliance uncertainty for exchanges, custodians and other service providers. However, the tax’s scope, enforcement rules and legal status remain unresolved. The outcome could affect operating costs and regulatory fragmentation across the US crypto market.