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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1/1/2015 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020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7/1/2011 – repealed effective 6/28/2019 – re-enacted effective 1/1/2020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 Gasification Facilities May Be Eligible for Credits, Exemptions.

Under the Federal Enterprise Zone Act, certain new gasification facilities now qualify as a \”high impact business.\”

Pumpkins Are Subject to the Reduced (1%) Illinois State Sales Tax.

Pumpkins are considered to be food and are therefore subject to the reduced (1%) Illinois state sales tax rate if they are sold in a condition suitable for human consumption. Local sales taxes may also apply, depending upon where the…

Chicago Rate Increase 7/1/05

This is just a reminder that the Chicago, IL sales tax rate is increasing to 9% effective 7/1/05.

Illinois Makes Changes to “”Out-of-State Buyer”” Exemption.

The State of Illinois has issued an Informational Bulletin stating changes to the \”out-of-state buyer\” exemption.

Illinois Publishes List of Delinquent Taxpayers on Internet.

The Illinois Department of Revenue has posted the names, addresses, and outstanding tax balances of 100 business and individuals who have outstanding liabilities of $1,000 or more, which was due at least six months ago.

Illinois Governor Signs into Law Revisions to the Uniform Penalty and Interest Act.

On January 15, 2005, Illinois Governor Rod Blagojevich signed into law P.A. 93-1068, amending the late payment penalties imposed under the Uniform Penalty and Interest Act (UPIA).

Three Retailers Settle Suit With Illinois.

Wal-Mart, Target and Office Depot have agreed to pay $2.4 million in taxes owed on sales made over the internet. The companies had originally argued that they were not responsible for tax on the sales due to the fact that…

City of Chicago Passes 2005 Budget.

The 2005 $5.1 billion city budget was passed by the City Council on December 16, 2004.

Illinois retail giants settle in affiliate nexus lawsuits.

Recent settlement of more than $2.4 million was reached as a result of lawsuits filed against major Illinois retailers due to their failure to collect tax on internet sales.

Complaint Filed Against Online Retailer.

The Illinois Attorney General has filed a complaint against an online retailer under the Illinois Whistleblower Act.

Illinois nexus does not allow for tax on tugboat supplies.

Even though a tugboat company passed three out of four prongs of the Commerce Clause test under the U.S. Supreme Court test used in Complete Auto Transit, Inc. v. Brady, 430 U.S. 274 (1977), the tax apportioned by the state…

Illinois Manufacturer’s Purchase Credit (MPC) reinstated as of September 1, 2004.

Purchases of machinery and equipment made on or after that date will earn a credit equal to 50% of the 6.25%, or 3.125%, of the state sales tax rate. Printers and newspaper companies will also be allowed to apply the…

Illinois Graphic arts machinery and equipment exemption reinstated as of September 1, 2004.

The prior exemption was eliminated on July 1, 2003 and the reinstated exemption will be a mirror of the prior exemption. The exemption will apply to machinery and equipment used for graphic arts and will include new and used machinery…

Watercraft subject to Illinois use tax as of September 1, 2004.

Taxpayers who acquire a watercraft by gift, donation, transfer, or non-retail purchase must remit the 6.25% state use tax, and any applicable local taxes, with Form RUT-75 within 30 days of the acquisition or the date the watercraft is brought…

Illinois requests collection by out-of-state retailers.

A resolution has been adopted urging out-of-state retailers to collect (instead of \”charge\”) sales taxes upon goods and taxable services intended for use within Illinois.

Senate Bill 2205 has been passed by the Illinois Senate and is currently being reviewed by the House.

An amendment added by the House would change the state’s definition of ‘use’ and the state’s definition of ‘tangible personal property.’ If passed, sales and leases of prewritten and custom software would be taxable. Illinois does not tax leases of…

Chicago tax on restaurants and eating establishments.

A new tax is imposed in Chicago for each \”place of eating\” located in the City, at the rate of .25% of the selling price of all food and beverages sold at retail by the place of eating.

Illinois new business registration form.

When registering a business with the state of Illinois, Form NUC-1 is no longer accepted. Completing Form REG-1 is the initial step in the registration process for most fees and taxes, including sales and use.

Illinois penalty and interest changes.

Several changes were made to the Uniform Penalty and Interest Act. These changes are outlined in IL DOR Information Bulletin FY 2004-17 and include: – New calculations for the late payment penalty are effective for tax returns due on or…

Illinois liquor purchases must be reported.

Beginning October 2003, Line A has been added to Illinois Form ST-1, Sales and Use Tax Return, and Form ST-1-T, Illinois Sales and Use Tax Telefile Worksheet on which liquor retailers are required to report total liquor purchases. This value…

Illinois will not allow letter rulings to be relied upon once the letter ruling is ten years old.

It is stated, “No ruling may be cited or relied upon for any purpose after the date of its revocation, and the ruling will cease to bind the Department after the date of revocation.” Taxpayers must apply for a new…

Illinois power plants denied use tax pollution control facility exemption.

An Illinois utility company operating two coal fired power plants was denied an Illinois use tax pollution control facility exemption.

Illinois amnesty program.

The Illinois tax amnesty will run from October 1, 2003 to November 17, 2003 and is applicable to any tax period ending after June 30, 1983 but before July 1, 2002.

Illinois terminates various exemptions.

As of July 1, 2003, Illinois is putting a halt to many of the state\’s exemptions in attempts to help bolster the state\’s revenue.