Illinois Sales Tax

On this page you will find handy sales and use tax information about Illinois.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Illinois that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

6.250% The state has reduced rates for sales of certain types of items.

Range of Local Rates

0% – 5.25% Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

Yes/No Remote Sellers are required to collect state & local sales tax.

CLICK-THROUGH NEXUS

1/1/2015 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020

AFFILIATE NEXUS

7/1/2011 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020

ECONOMIC NEXUS

10/1/2018see state notice

MARKETPLACE NEXUS

1/1/2020

Status

Inactive

Amnesty Filing Dates

January 1, 2011 - October 15, 2011

Go to Illinois Amnesty Page
AMNESTY INCLUSION PERIODS

Any taxable period ending after June 30, 2004 and before January 1, 2011.

TAX TYPES AND CONDITIONS

Individual Use Tax

AMNESTY BENEFITS

No interest or penalties, no civil/criminal prosecution upon payment.

Status

Inactive

Amnesty Filing Dates

October 1, 2010 - November 8, 2010

Go to Illinois Amnesty Page
AMNESTY INCLUSION PERIODS

Any taxable period ending after June 30, 2002, and prior to July 1, 2009.

TAX TYPES AND CONDITIONS

Covers Business Sales and Use Tax; Taxpayers with eligible liabilities who don’t participate will be charged double interest & penalty under audit.

AMNESTY BENEFITS

No interest or penalties, no civil/criminal prosecution upon payment.

Status

Inactive

Amnesty Filing Dates

November 15, 2015 - December 31, 2015

Go to City of Chicago Amnesty Page
AMNESTY INCLUSION PERIODS

Unpaid tax liabilities incurred prior to January 1, 2012.

TAX TYPES AND CONDITIONS

The City of Chicago is offering a debt relief program providing individuals and businesses the opportunity to resolve outstanding debt. Included in the eligible debt are unpaid tax liabilities (for both non-filers and tax assessments) incurred prior to January 1, 2012. More details.

AMNESTY BENEFITS

Penalties, interest, and collection costs waived.

Status

Inactive

Amnesty Filing Dates

October 1, 2019 - November 15, 2019

Go to
AMNESTY INCLUSION PERIODS

Taxable periods after June 30, 2011 and prior to July 1, 2018.

TAX TYPES AND CONDITIONS

All taxes administered by the Illinois Department of Revenue.

AMNESTY BENEFITS

No interest or penalties, no civil/criminal prosecution upon payment.

Administration Information
Streamlined Sales Tax Status

Advisory State

NUMBER OF TAXING AUTHORITIES

563 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

N/A

Sales Tax Sourcing (Intrastate)

Origin

Sales Tax Return Due Date

The 20th of the month following the reporting period

Exemption Information
RESALE CERTIFICATE

Illinois Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: sales of newspapers and magazines; sales of tangible personal property to interstate carriers for hire used as rolling stock; sales of machinery and equipment that will be used primarily in manufacturing or assembling of tangible personal property for wholesale or retail sale or lease, and production agriculture; qualified sales of building materials

 

Entity types of exemptions: sales to state, local, and federal governments; sales to not-for-profit organizations that are exclusively charitable, religious, or educational

 

Illinois Exemption Certificates

State Links
History & Fun Facts
HISTORY

  • The Illinois retailers’ occupation (sales) tax was enacted June 28, 1933.
  • National Bellas Hess Inc. v. Illinois Dept. of Revenue was a 1967 U.S. Supreme Court decision that started paving the way for Internet sales tax and our current debates surrounding South Dakota v. Wayfair, Inc. National Bellas Hess was a mail order company based in Missouri. The company did not own tangible property in Illinois nor have sales outlets, representatives, or solicitors, and did not advertise in Illinois. It mailed catalogs twice a year to customers, occasionally supplemented by flyers. The Illinois Supreme Court determined the company should be required to collect and remit use tax for customers who purchased the company’s goods for use within Illinois. The U.S. Supreme Court held that the U.S. Due Process Clause and Commerce Clause required some physical presence in order for a state to impose a collection responsibility on an out-of-state seller. This ruling was overturned in South Dakota v. Wayfair.

FUN FACTS
  • In Illinois, candy has a broad definition in the way sales tax is imposed. However, candy items that contain flour or require refrigeration are not considered candy. For example, a candy made with flour, such as Twix, is not taxed, but a candy such as a Milky Way would be subject to sales tax.
  • While Illinois does not have any home-rule cities; there is continual legislative efforts to allow home-rule style audits.
  • Watch purchases from out-of-state sellers; they may have locations in and outside of Illinois. If your transaction is from an out-of-state location, make sure they collect only the 6.25% seller’s use tax v. defaulting to an Illinois ROT rate for their instate location. But if the seller is a true remote seller with no physical nexus, effective 1/1/21 they are required to collect state and local ROT instead of seller’s use tax.

Illinois Appeals Court Partially Affirms False Claims Act Qui Tam Claim Against Lowe’s

The Appellate Court of Illinois First Judicial District has released an order affirming the Trial Court’s decision in case 15 L 50776, People of the State of Illinois, ex rel. v. Sears Brands, LLC, et al, Lowe’s Home Centers LLC Defendant- Appellee.

Remote Retailer Files Challenge to Illinois “Leveling the Playing Field” Laws

PetMeds, a Florida based online retailer of pet supplies and medication, has recently lodged a petition with the Illinois Independent Tax Tribunal to challenge an audit assessment.

Card Interchange Fees to be Prohibited in Illinois

A new prohibition on interchange fees paid by merchants was included in Illinois HB 4951 and will go into effect in Illinois on July 1, 2025. The law forbids card networks from receiving or charging any fees on the tax…

Illinois Updates Sales Tax Requirement for Leases

Effective January 1, 2025, Illinois will begin taxing lease transactions, which will bring Illinois more in line with most other states’ sales tax treatment of leases. Prior to January 1, 2025, Illinois opted to tax personal property at the time…

Illinois Caps Vendor Discount

Effective January 1, 2025, a provision of Illinois HB4951 goes into effect which caps the sales tax vendor discount to $1,000 per month. The original idea behind offering this discount was as a form of compensation to businesses meant to…

Illinois Updates Destination Based Sourcing Rules

Effective January 1, 2025, a provision of Illinois S.B. 3362 goes into effect which makes certain Illinois retailers responsible for destination-based sourcing for sales tax purposes.

Illinois Enacts New Requirements for Direct Pay Permit Holders

Illinois has enacted sales and use tax legislation that creates new requirements for direct pay permit holders.

Illinois Provides Updated Guidance on Nonresident Purchaser Exemption for Motor Vehicles and Trailers

Illinois provided guidance on whether non-residents may claim an out-of-state purchaser exemption from sales tax when purchasing a motor vehicle or trailer in Illinois that will be titled in another state.

Your Guide to Sales Tax in the Midwest

To catch you up and cut down your research time, we’ve compiled some of the essential Midwestern sales tax trends for 2024 that you need to know.

Illinois Provides Information Bulletin Regarding New Payment Equals Agreement Statute

The Illinois Department of Revenue has released helpful guidance on legislation already enacted that alters how payments for sales, use, and excise taxes and fees are understood.

Illinois Provides Tax Exemption for Aircraft Parts

On June 7, 2023, Governor J.B Pritzker signed S.B. 1963, which amended Article 5 of the Use Tax Code to provide exemptions for aircraft parts.

Illinois DOR Rules Company’s Freezing & Cooling Machinery is Exempt

In a private letter ruling issued on June 2, 2023, the Illinois Department of Revenue ruled that an Illinois company’s machinery was exempt from sales tax due to its role in preserving and maintaining food to be sold.

Illinois Enacts Exemption for Federal Government for Property Sold to Active-Duty Armed Forces Members

Illinois has enacted a new exemption for tangible personal property that is sold to active-duty members of the Armed Forces. The exemption will go into effect on January 1, 2024.

Dismissal of Illinois Qui Tam Claim Against UK Tailor Affirmed

A Chicago man’s qui tam action claim against a U.K. tailor was dismissed by a circuit court. The dismissal was recently affirmed by an Illinois Appellate Court.

Federal Statute Prevents Chicago Imposing Amusement Tax

The Illinois Appellate Court determined that Wendella Sightseeing, Inc. was not liable for the City of Chicago’s amusement tax due to a federal statute.

Illinois Issued a Letter Discussing Taxability of Various Digital Goods

The Illinois Department of Revenue issued a general information letter encompassing the applicability of sales and use tax to the sales of various digital goods by a digital goods distributor (taxpayer).

Illinois Amends Administrative Code to Address Specifics of Leveling the Playfield for Out of State Sellers

Effective January 23rd, the Illinois Department of Revenue adopted amendments to their use tax rules to provide guidance in line with the state\’s Leveling the Playing Field for Illinois Retail Act, which originally came into effect on January 1, 2021.

Illinois Issues Guidance on Taxability of Sporting Event Ticket Sales

The Illinois Department of Revenue (DOR) issued a General Information Letter (GIL) providing guidance on the taxability of sporting event ticket sales.

Illinois Releases Answers to 2022 Sales and Use Tax Issues Survey

In response to a request from a state tax reference book, Illinois has published a General Information Letter addressing issues surrounding the state\’s nexus standards and other laws and procedures.

Challenge to Chicago’s streaming tax settled between the city and Apple

Apple and Chicago agreed to settle a lawsuit claiming the city’s 9% streaming tax was unconstitutional.

Illinois Makes Cuts to Grocery and Gas Taxes

Illinois’ legislative session is resulting in tax cuts across grocery and fuel taxes.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Illinois Clarifies Taxation of Software as a Service

The Illinois Department of Revenue has issued a private letter ruling regarding the taxation of software as a service and cloud-based remote work tools.

Bundled Hardware and Software Subscription Subject to Service Occupation Tax in Illinois

The Illinois Department of Revenue ruled that a taxpayer providing software subscriptions and hardware for a bundled price is subject to the Service Occupation Tax, but not Retailers’ Occupation Tax, Use Tax, or Service Use Tax.