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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 Sales Tax Rates
State Rate

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

0% – 5.75% 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.
Remote Seller Nexus Rules
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1/1/2015 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020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7/1/2011 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020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

10/1/2018 – see state notice
MARKETPLACE NEXUS

1/1/2020
Sales Tax Amnesty
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

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.

Status

Inactive

Amnesty Filing Dates

October 1, 2025, - November 15, 2025

Go to Illinois Amnesty Page
AMNESTY INCLUSION PERIODS

Tax periods beginning after June 30, 2018, and ending prior to July 1, 2024.

TAX TYPES AND CONDITIONS

Applies to most taxes (e.g., state corporate and personal income taxes, and sales and use taxes) owed to the Department.
AMNESTY BENEFITS

Qualifying tax amnesty applicants potentially may receive a waiver of all related penalties and interest.

Status

Future

Amnesty Filing Dates

August 1, 2026 - October 31, 2026

Go to Illinois Amnesty Page
AMNESTY INCLUSION PERIODS

Remote retailers who have had economic nexus with Illinois for all or part of the amnesty period between January 1, 2021, and June 30, 2026

TAX TYPES AND CONDITIONS

Under the amnesty program, a standard tax rate of 9% will apply to sales of tangible personal property that were subject to the state’s 6.25% use tax or 1.75% for food sales rather than the actual combined state and local rate of the customer. Taxpayers must register with the Department of Revenue and must file returns and remit payment within the amnesty period.
AMNESTY BENEFITS

This program offers both the Simplified ROT rate and the waived interest and penalty charges

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
State Tax Web Page

Illinois Department of Revenue
Rate Look-Up Page

Illinois Sales Tax Rate Look-Up
Registration Link

Register for Illinois Sales Tax
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 Manufacturer’s Purchase Credit repealed.

The tax credit program for manufacturers will cease for purchases of manufacturing machinery and equipment or graphic arts machinery and equipment made after June 30, 2003.

Illinois corporate taxpayers affected by budget bills.

On May 31, 2003 the Illinois General Assembly passed measures that will affect retailers\’ occupation tax, service occupation tax, service use tax, and use tax.

Illinois Certified Audit Program uncertain.

There are distinct uncertainties regarding the future of the Illinois Certified Audit Program (CAP).

Out of state company not entitled to Illinois credit.

A Pennsylvania corporation doing business in Illinois leased computer equipment in a buyout of its lease commitment. A motion for reconsideration found that they were not entitled to a credit against Illinois use tax equal to the amount the corporation…

Illinois multistate exemption credit not allowed.

A Pennsylvania corporation, doing business in Illinois, purchased leased computer equipment in a buyout of its lease commitment but…

An Illinois corporation which leased computers was not granted use tax credit.

A Pennsylvania company, doing business in the state of Illinois, was not allowed to take a credit against its Illinois use tax liability even though it had already paid an equal amount in use tax in the state of Pennsylvania.

Illinois bill to make transfers via the internet taxable.

The Illinois Senate has introduced a bill that would make all \”internet transfers\” subject to Illinois use tax.

Illinois vs. Internet retailers.

Six separate online retailers are have been targeted as part of a lawsuit being filed by the Illinois Attorney General.

Illinois rolling stock exemption.

Rolling stock sold to owners, lessors or shippers are not liable for sales and use tax.

Illinois liability.

Taxpayers are liable for filing fees incurred by the Department of Revenue for filing and releasing an assessment lien…

Illinois credit clarification.

Regulations on the Illinois Manufacturer’s Purchase Credit have been amended for clarification. A supplier or serviceman must now report the use of the Manufacturers Purchase Credit on sales or purchases on the IL Form ST-1 as a credit, not as…

Illinois exemption for storage.

Tangible personal property will be exempt from sales tax as of January 1, 2002, if it meets the following requirements: if it is purchased from an Illinois retailer by a Illinois taxpayer who is engaged in centralized purchasing, is stored…

Illinois authorizes Direct Payment program

Public Act 92-484 has been enacted as of August 23, 2001, which states that Illinois will have a direct payment program established for sales and use tax payments. (Illinois Department of Revenue letter, October 5, 2001)

Illinois authorizes Direct Payment program.

Public Act 92-484 has been enacted as of August 23, 2001, which states that Illinois will have a direct payment program established for sales and use tax payments. (Illinois Department of Revenue letter, October 5, 2001)

The Circuit Court of Cook County, Illinois ruled that gas combustion electric generators that are used in a mandated landfill gas emission project are exempt from sales tax as pollution control equipment.

The Court contended that the Department of Revenue already acknowledged the collection piping, pumps and compressors used to collect the landfill gas qualified for an exemption. They also stated that the equipment used to dispose of the landfill gas, once…

The provision of satellite transmission services in Illinois is not subject to telecommunications excise tax.

The Court found that the service provider was merely a middleman enabling its customers to transmit information and did not originate, modify, or terminate and of the communications. (Spacecom Systems, Inc., Illinois Circuit Court, Cook County v Illinois Department of…

Illinois Manufacturer’s Purchase Credit Reports due by June 30, annually

The Illinois MPC reports detailing the amount of credit earned and used for the period January 1 to December 31, are due by June 30, of the following year.