The State of Illinois updated nexus requirements for remote sellers to remove the 200-transaction count from economic nexus requirements in budget legislation signed by Governor JB Pritzker on June 16, 2025. Beginning January 1, 2026, out of state retailers who meet or exceed the $100,000 sales threshold will be required to register or maintain registration in Illinois. Remote businesses who do not exceed $100,000 in a 12-month period will be able to deregister or defer initial registration regardless of the count of sales transactions into Illinois. For those businesses who can deregister, they will have to monitor sales—if they do exceed $100,000 in Illinois sales in a 12-month period, then they will have to re-register and begin collecting again.
This is an update that will give smaller businesses the opportunity to review and streamline their sales tax registrations as well as helping the Department of Revenue save time spent processing smaller returns. Remote sellers to Illinois customers should begin assessing if they will need to remain registered and preparing for any necessary changes as soon as possible. Remote sellers need to continue to monitor their potential economic nexus on a quarterly basis ending on the last day of the month (e.g., March, June, September, and December) for the prior 12-month period based on the $100,000 sales threshold. (Illinois HB 2755, Signed by Governor JB Pritzker June 16, 2025, effective January 1, 2026)
For updates on all transaction thresholds, check out the Economic Nexus State by State Guide.