Illinois state seal

IllinoisSales Tax

A Complete Guide For Businesses

State Rate
6.25%

Local Tax
yes

State Portal
Department of Revenue

Phone
(217) 782-3336

General requirements

Illinois is an origin-based state (sales are taxed where the seller is located).

  • Sales tax is charged on the sale of tangible personal property (TPP) for use or consumption
  • Illinois sales tax has 3 rate structures - one for general merchandise, one for qualifying food and drugs, and one for items required to be titled or registered

File your sales tax online using MyTax Illinois.

Rates

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.

For a fast and accurate sales tax rate lookup by zip code, use our up-to-date calculator below.

Look up your Illinois sales tax rate:

How food is taxed

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.

Nexus in Illinois

Business activities that establish a minimum tax connection to the state include:

  • Having an office, agent, or representative in the state
  • Have a place from which you deliver or produce products in the state

Online activities that establish nexus in Illinois include:

  • Having an affiliate or referral relationship with a contractor or representative in the state
  • Sales from these referrals exceed $10,000 during each of the prior 4 quarters

Economic nexus in Illinois:

  • According to state law, out-of-state sellers whose sales exceed $100,000 gross revenue or 200 separate transactions into Illinois in the previous 12 months* are required to register with the state, collect sales tax on sales to Illinois, and remit that sales tax to the state.
  • *The determination is made quarterly by looking 12 months back from the last day of March, June, September or December. If the criteria is met, the retailer must collect and remit sales tax for one year. At the end of that year, if the criteria continue to be met, collection continues.
  • Enforcement date: Jan. 1, 2019

Find more information about nexus in Illinois.

Filing schedule

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.

Registering to collect sales tax in Illinois

There are 3 ways to register your business and receive a Certificate of Registration:

Penalties

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.

We try our best to keep these guides up-to-date. If any of this information is no longer accurate, or if you'd like us to add something new, please email corrections and suggestions to support@lumatax.com. We love hearing feedback!