Illinois
Provinces
Illinois
Provinces
Illinois
About
Illinois
About
Illinois
Illinois
Illinois
Standard rate
The standard rate in Illinois for sales tax for 2024 is 6.25%.Reduced rate
The reduced rate in Illinois for 2024 is 1%.Sales of tax-free products and services
In Illinois, certain products and services are exempt from sales tax. These include prescription drugs, groceries (excluding prepared food), and medical devices like insulin, oxygen tanks, and prosthetic devices. Additionally, most digital services (such as Software as a Service (SaaS) and digital downloads) are not subject to sales tax at the state level, the exception is the city of Chicago, which imposes its own taxes on SaaS and other digital services at a rate of 9%. Other tax-exempt items include newspapers and magazines.Who must register sales tax in Illinois
If you make sales outside of a marketplace facilitator and you meet one of the thresholds, you must register to collect and remit sales tax, including local taxes.
Standard rate
6.25%
Reduced rate
1%
Threshold
$100,000
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Threshold
Starting on October 1, 2018, Illinois introduced economic nexus thresholds for remote sellers. These thresholds require registration for sales tax collection if a business exceeds $100,000 in gross sales or 200 transactions with Illinois customers. Merchant thresholds by state Marketplace thresholds by state The special rules are applicable to the SAAS business. Software as Service Tax Thresholds by state.Online Marketplaces
If you marketplace seller and the marketplace facilitator collect and remit Illinois Use Tax for your sales through the marketplace, you will no longer be required to report these sales. If you are selling through your own website, then you will need to register for paying sales tax if you meet the $100,000 or 200 transactions threshold for remote sellers.Sales tax payment and filing date
The filing frequency may vary based on your average monthly liability:- If your average monthly liability is greater than $200, the department may notify you that your filing frequency has been changed to a monthly requirement;
- If your average monthly liability is more than $50 and less than $200, the department may notify you that your filing frequency has been changed to a quarterly requirement;
- The department may change filing frequency to an annual requirement if your average monthly liability is less than $50.
Penalty and interest
- Late Filing Penalty – 2% of the tax due.
- Late Payment Penalty:
- 2% of the tax due if paid within 30 days;
- 10% of the tax due if paid after 30 days but within 90 days;
- 15% of the tax due if paid after 90 days but within 180 days;
- 20% of the tax due if paid after 180 days.
Discount
In Illinois, the discount for paying on time is greater than 1.75% of the tax due or $5 for the calendar year.Sales tax holidays in Illinois
Illinois does not have a sales tax vacation, but there are periods when no tax is imposed on certain items:- Annual School Supply Tax-Free Weekend: The first weekend in August, there is no tax on school supplies valued up to $125.
- Annual weekend with no tax on clothing: The first weekend in February, there is no tax on clothing and shoes up to $125.
- Local Tax Exemptions: Some cities and municipalities in Illinois may offer their own sales tax-free days.
Illinois Sales Tax Nexus
- Physical Nexus: Companies with a physical presence, including offices, warehouses, or employees, must collect sales tax.
- Economic Nexus: Established if a company has gross sales in Illinois exceeding $100,000 in the previous year, or 200 or more separate transactions with buyers in the state.
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