Illinois is an origin-based state (sales are taxed where the seller is located).
File your sales tax online using MyTax Illinois.
Illinois’ sales tax rate is 6.25% on general merchandise and 1% on qualifying foods, drugs, and medical appliances.
The tax rate may be higher in some areas due to numerous additional local and home rule taxes. Use the Tax Rate Finder to find specific tax rates in Illinois.
Grocery-type food items are taxed at a reduced 1% rate, while prepared foods for immediate consumption are taxed at the full 6.5% plus local rate.
Business activities that establish a minimum tax connection to the state include:
Online activities that establish nexus in Illinois include:
Find more information about nexus in Illinois.
Most taxpayers are required to file monthly returns. All returns are due on the 20th of the month following the reporting period.
The Department will notify you if you qualify to file returns quarterly or annually. Taxpayers whose average tax due is at least $20,000 per month, will be notified and required to make 4 tax payments per month.
Taxpayers are allowed to take a 1.75% discount for timely filing and payment.
There are 3 ways to register your business and receive a Certificate of Registration:
Late returns incur penalties and interest. The Department states that in the event of late filing or late payment, “We encourage you to let us calculate your penalties and interest and bill you.”
More information about penalties and interest charged on late returns can be found here.