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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1/1/2015 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020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7/1/2011 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020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 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 Introduces New Tax Amnesty Program

Illinois has enacted legislation that establishes an amnesty program for all taxes administered by the Illinois Department of Revenue.

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.

Midwest State Tax Updates You May Have Missed

This blog post will explore three recent Midwestern state tax updates that could have a big impact – positive or negative – on your business.

Illinois Enacts Economic Nexus Legislation

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

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.

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

The Illinois State Treasurer is authorized to (at least annually) share with the Illinois Department of Revenue the names (and social security numbers, if available) of people who appear to own unclaimed property held by the State Treasurer.

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.

Illinois Enacts Hotel Tax Exemption for Religious Organizations

Illinois has enacted an exemption from the Hotel Operators\’ Occupation Tax for entities that are organized and operated exclusively for religious purposes and possess an active Exemption Identification Number (EIN).