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% – 4.75% 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1/1/2015 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020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7/1/2011 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020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 Illinois Amnesty Page
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. More details.

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.

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 Makes Changes to Taxation of Wine Sales by Remote Sellers

Illinois has enacted changes to the taxation of wine sales to Illinois purchasers by certain winery shipper’s license holders.

Remote Retailers to Collect Illinois ROT at Destination Rate, Effective January 1, 2021

A significant change for remote out of state sellers and marketplace facilitators making sales into Illinois is occurring as of January 1, 2021, regarding the collection of sales and use tax, sourcing, and tax rates, and this will impact your…

Chicago Increases Personal Property Lease Transaction Tax, Effective January 1, 2021

Effective January 1, 2021, Chicago’s Personal Property Lease Transaction Tax increases from 7.25% to 9% on charges for cloud services

Economic Nexus State Guide

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Retailer’s Sale and Installation of Appliances Not Exempt in Illinois

The Appellate Court of Illinois affirmed a lower court’s finding that a retailer’s sales of appliances were not exempt as installations into real property from ROT despite the retailer’s installation of the appliances.

Chicago Extends Tax Payment Due Dates due to COVID-19

To help reduce the financial impact of COVID-19, Chicago has extended tax payment due dates for the periods July 2019 through September 2020.

Cook County Illinois Will No Longer Collect Amusement Tax on Paid Television, Effective April 1, 2020

Effective April 1, 2020, the Cook County Department of Revenue will no longer collect amusement tax on sales of paid television.

Chicago Updates Cloud and Software Lease for Release Rule

Chicago modified its application of the lease for re-lease exemption to include certain software and cloud products, effective July 1, 2020.

Delivery Method Changes Everything: Navigating Sales Tax on Intangible Goods

Explore cases where seemingly intangible goods can be converted to tangible personal property for sales tax purposes.

Sales Tax Nuances of Trade Show Attendance

Trade show attendance in another state can create physical nexus and trigger sales tax obligations. Learn key nuances of trade show rules across the states.

Chicago Increases Personal Property Lease Transaction Tax, Effective January 1, 2020

Effective January 1, 2020, Chicago’s Personal Property Lease Transaction Tax increases from 5.25% to 7.25% on charges for cloud services.

Metallurgical Coke Did Not Qualify for Manufacturing Chemical Exemption in Illinois

A zinc refining facility was held liable for Illinois use tax on its out-of-state purchases of metallurgical coke for use in the refining process.

Illinois Issues Guidance on Parking Excise Tax

The Illinois Department of Revenue (DOR) has issued information regarding the state’s Parking Excise Tax, which took effect on January 1, 2020.

Illinois Re-Enacts the Repealed Click-Through and Affiliate Nexus Provisions

Illinois has enacted legislation that re-enacts the repealed click-through nexus and affiliate nexus provisions, effective January 1, 2020.

Illinois Expands Manufacturing Machinery and Equipment Exemption

Illinois has expanded the state’s manufacturing sales and use tax exemption to include production related tangible personal property, effective July 1, 2019.

Illinois Enacts Marketplace Nexus Legislation

Illinois has enacted legislation including marketplace nexus provisions, effective January 1, 2020.

Illinois Introduces New Tax Amnesty Program

The Illinois DOR will run a tax amnesty program from October 1, 2019 through November 15, 2019 that covers taxable periods after June 30, 2011 and prior to July 1, 2018.

Illinois Amends Voluntary Disclosure Procedure

The Illinois Voluntary Disclosure Program will now be run through the Problems Resolution Division.

October 1, 2018 Remote Seller Deadline for Multiple States

The October 1, 2018 remote seller compliance deadline is approaching for a number of states. Click on the links below for our previous news items with more details. Alabama Enacts Economic Nexus Provision Illinois Enacts Economic Nexus Legislation Indiana Enacts…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Case Study: How Local Taxes Can Impact Small Businesses

There is a crucially important topic when it comes to sales tax compliance that most don’t properly consider: local sales and use tax.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.