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

No

CLICK-THROUGH NEXUS

1/1/2015

AFFILIATE NEXUS

7/1/2011

ECONOMIC NEXUS

10/1/2018see state notice

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.

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.

Midwest State Tax Updates You May Have Missed

In sales tax, legislative updates and law changes are a constant. It is virtually impossible to keep up with all of the changes taking place in the states where you conduct business, especially if there are more than one. But…

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

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.

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.

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.

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.

Illinois Enacts Economic Nexus Legislation

Illinois has enacted legislation containing economic nexus provisions, effective October 1, 2018.

Illinois Issues Guidance on Applicability of Manufacturing Exemption to Commercial Printing

The Illinois Department of Revenue has issued a general information letter regarding whether commercial printing is considered “manufacturing” and if the state’s manufacturing exemption applies to electricity consumed to run printing machinery.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Illinois Appellate Court Finds Motor Fuel Tax Did Not Apply to Compressed Natural Gas

The Illinois First District Appellate Court reversed an earlier order by the Illinois Independent Tax Tribunal regarding motor fuel tax on compressed natural gas.

Illinois Supreme Court Disallows Sales Tax Refund on Bad Debt to Lender

The Illinois Supreme Court reversed a lower court’s decision and disallowed a lender’s refund claim of sales tax paid through affiliated retailers.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

City of Chicago Changes Terms of Voluntary Disclosure Program

Chicago has changed the terms of its voluntary disclosure program. In addition to waiving all penalties for qualified participating taxpayers, the city will now also waive 50% of interest.

Illinois Enacts Changes to Electronic Filing Requirements for Sales and Use Tax

Illinois has enacted new electronic filing requirements for sales and use tax filers, effective January 1, 2018.

Cook County Provides Guidance on Sweetened Beverage Tax Close-Out Process

Following the repeal of the Cook County sweetened beverage tax effective December 1, 2017, the last tax returns and payments regarding the tax are due December 20, 2017.

Illinois Authorizes Information Sharing to Administer Unclaimed Property

Effective August 11, 2017, the names of people who are due unclaimed property held by the Illinois State Treasurer can be shared with the Department of Revenue to aid in returning unclaimed property.

Illinois Enacts Hotel Tax Exemption for Religious Organizations

Effective July 1, 2017, Illinois enacted an exemption from the Hotel Operators’ Occupation Tax for religious organizations renting, leasing, or letting rooms in furtherance of the purposes for which they are organized.

Internet Retailer Not Liable for Use Tax in Illinois

In a class action lawsuit, an Illinois court held that a Nevada-based online retailer did not have substantial nexus with Illinois and was not required to collect Illinois sales tax.

Nexus of Medical Transcription Service Prompts Discussion of Illinois Sales and Use Tax

An Illinois Department of Revenue general information letter detailed that although a taxpayer’s medical transcription service performed work for customers in Illinois, no tangible personal property was transferred, so no tax was due.

Graphic Arts Machinery and Equipment Included in Illinois Manufacturing Exemption

Effective July 1, 2017, graphic arts machinery and equipment are included in the Illinois manufacturing and assembling machinery and equipment exemption. Graphic arts equipment was previously included in a different exemption.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.