Ultimate Illinois Sales Tax Guide

Whether you're puzzled about Illinois sales tax rules or uncertain about the filing timelines — our guide will help you clear the haze.

We'll explore the ins and outs of calculating sales tax rates for every county and city in Illinois. We’ll also tackle some of your burning questions, like how to collect sales tax in Illinois and whether you should.  

Plus, we'll introduce you to the perfect sales tax solution to help you stay compliant throughout the entire sales tax lifecycle. 

Illinois Sales Tax Rate Range 2024

The minimum sales tax rate in Illinois, United States, is 6.250%. 

The sales tax in Illinois consists of:

• Occupation taxes imposed on retail sale receipts.
• Use taxes imposed on the money paid by purchasers.

Additionally, counties, municipalities, townships, special districts, and other units regarded as a local government by law can levy local taxes. These local taxes may include county, city, and special taxes, such as home rule county taxes.

For instance, Elmhurst in Cook County imposes a total sales tax rate of 10.500%. This includes 6.250% of Illinois state tax, 1.750% of Cook County tax, a city tax rate of 1.500%, and 1.000% of special taxes.

How to Calculate Sales Tax in Illinois

You can add the following rates to calculate tax in Illinois:

• State sales tax
• Local sales tax (which could be county and/or city tax)
• Special taxes

For instance, let's calculate the sales tax rate of Harvey, Cook County:

• Illinois state sales tax of 6.250%
• Cook County sales tax of 1.750%
• Harvey city sales tax of 1.500%
• Other special taxes of 2.000%

This brings Harvey's total sales tax rate to 11.500% — the highest in the state.

Note: Illinois revises its local sales tax rates every January 1 and July 1. The last sales tax rate update in the state was on January 1, 2024.

Find your city here for a detailed overview of its sales tax rates.

Sales Tax Rates in Illinois by County

Let’s look at the sales tax rates of a few Illinois counties:

County	Sales Tax Rate
Dupage County	6.250%
Adams County	6.500%
Bond County	7.250%
Brown County	7.500%
Boone County	7.750%
Calhoun County	8.000%
Cass County	8.250%

Next, let’s see how you can collect sales tax in Illinois.

Collecting Illinois Sales Tax from Customers

Here are the answers to some common questions you may have on sales tax collection:

Do I Have to Collect Illinois Sales Tax from Customers?

Retailers who meet these two requirements are required to collect sales tax in Illinois: 

• You have a sales tax nexus in Illinois
• You sell taxable products or services in Illinois

What Creates a Sales Tax Nexus in Illinois?

The Illinois Retailers Occupation Tax Act states that ‘retailers’ have nexus in the state. 

Activities that create nexus include: 

• Economic Nexus: Businesses making taxable sales of more than $100,000, or 200 separate transactions to buyers in the state in the past 12 months.

• Physical Location: Businesses having a store, office, warehouse, or other place of business.

• Employee Location: Businesses with employees, contractors, salespeople, installers, other personnel, or a third-party affiliate in the state.

• Trade Shows: Businesses that sell tangible personal property and services in trade shows, festivals, and craft shows. If you travel to more than one event yearly, you should apply as a ‘changing location’ filer.

Read more about who needs to collect Retailers Occupation Tax here.

Do I Have to Collect Sales Tax from Illinois Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?

No. 

Marketplaces like Walmart and eBay must collect sales tax on behalf of third-party sellers in Illinois. 

If you have a sales tax nexus in Illinois, don’t forget that you must still collect sales tax on your other non-marketplace Illinois sales.

Learn more about what marketplace facilitator sales tax means for e-commerce sellers here.

So, what products are taxed in Illinois?
Let’s find out.

Taxable Products in Illinois

Illinois sales tax has three rate structures for any retail sale:

• Qualifying food, drugs, and medical appliances: Most food items at the grocery, prescription and non-prescription medicines, as well as prescription and non-prescription medical devices. These items have a sales tax rate of 1%.

• Items required to be titled or registered: Motor vehicles, ATVs, watercraft, aircraft, trailers, and mobile homes. All necessary taxes must be paid before registration. 

• General merchandise: Most tangible personal property, such as soft drinks, processed food, prewritten software, and more. They are taxed at a rate of 6.250%.

Let's take a closer look at how a retail sale is taxed in Illinois: 

Are Groceries Taxable in Illinois? 

Yes, but at a reduced state sales tax rate of 1%. 

Local areas like cities and counties may also apply their sales tax rate to groceries. 

Is Clothing Taxable in Illinois?

Yes, clothing is taxable in Illinois. 

Are Digital Products Taxable in Illinois?

No, digital goods are not taxed in Illinois.

Is Software-as-a-Service (SaaS) Taxable in Illinois?

No, but Chicago imposes the Chicago Personal Property Lease Transaction Tax on the usage of SaaS-based products.

Are Services Taxable in Illinois?

Services are generally not taxable in Illinois. But if tangible personal property is sold along with a service, it may be subject to Illinois’ Service Occupation Tax (SOT).

You can read more about what services are taxable in Illinois in publication REV-717 “Retailer’s Information.” 

Tax-Exempt Items

A few tax-exempt items in Illinois are:

• Intangible personal property, such as shares and bonds.
• Tangible personal property for resale purposes. The purchaser should have an active registration or resale number from the Department. 
• Newspapers and magazines.
• Sales made to any corporation, society, association, foundation, or institution for charitable, religious, or educational purposes. 
• Low sulfur dioxide emission coal-fueled devices.
• Manufacturing machinery and equipment for manufacturing of tangible personal property or in the agriculture sector.
• Building maintenance materials used to build real estate projects that already have a Certificate of Eligibility for Sales Tax Exemption
• Breast pumps, breast pump kits, breast pump collection, and storage supplies.
• Photo processing machinery and equipment, including its repair and replacement parts

Now, you need a sales tax permit to collect sales tax. Let's discover how you can get one.

How to Register for an Illinois Seller's Permit

You can register for an Illinois seller's permit online at MyTax Illinois.

Learn how to register for a seller's permit in every US state.

Do I Need an Illinois Sales Tax License if I’m Only a Wholesaler? 

Yes. 

You can apply for a ‘resale number’ with the Illinois Department of Revenue. The department may restrict the use of a resale number to a limited time period, such as one year.

Do I Need an Illinois Seller's Permit if I Only Sell Temporarily in the State?

Yes. 

In Illinois, every big and small business, even those making taxable sales at tradeshows or craft fairs, must get a seller's permit and collect sales tax.

Temporary vendors must pay sales tax within ten days of ending their business activity in the state using the Special Event Tax Collection Report and Payment Coupon (IDOR-6-SETR).

Find out more by calling the Illinois Department of Revenue at 1-847-294-4475 or emailing rev.special.events@illinois.gov. 

How to Collect Sales Tax in Illinois

Sales tax in Illinois is collected in two ways:

A. How to Collect Sales Tax on Intrastate Illinois Sales

A sale is intrastate if the buyer and seller are both in Illinois or if the buyer is in Illinois and the item ships from a location (a store, warehouse, etc.) in Illinois. 

Illinois is an ‘origin-based’ sales tax sourcing state. This means that if you make a sale originating in Illinois and the buyer’s ship-to address is also in Illinois, you would charge the sales tax rate of the sale’s origination point. 

For instance, your business is located in Naperville, Illinois, and you make a sale to a buyer in Rockford, Illinois. Then, you’d charge the buyer the sales tax rate at your Naperville location.

B. How to Collect Sales Tax on Interstate Illinois Sales

A sale is interstate if the item ships from outside Illinois and the seller isn’t otherwise engaged in business in the state. 

For sales that don’t originate in Illinois, you’ll charge the sales tax rate at your buyer’s location. 

For example, your business is located in Leander, Idaho, but you have a nexus in Illinois and sell to a buyer in Champaign, Illinois. You’d charge the buyer the combined state and local Champaign sales tax rate.

Should You Collect Sales Tax on Shipping Charges in Illinois?

Yes.

Shipping charges are subject to sales tax in Illinois.

Learn about sales tax on shipping in every US state here.

How to File and Pay Sales Tax in Illinois

You can file Illinois sales tax returns in multiple ways.

• File and pay online - You can file and pay Illinois sales and use tax online at MyTaxIllinois.
• File and pay by mail - Fill out Illinois Sales and Use Tax and E911 Surcharge Return (Form ST-1)
• Let Zamp handle your Illinois sales tax filing and remittance so you never have to look at a sales tax return again! 

Learn how to file and pay sales tax in other US states here.

Have more questions?

We’ll get to them next. 

FAQs on Paying and Filing Illinois Sales Tax

Here are the answers to some of the most common questions on collecting sales tax in Illinois:

What Is Use Tax?

Use Tax is a type of tax you owe on items bought for use in Illinois, and sales tax hasn't been paid at the time of purchase.

You need to pay use tax if you buy an item:

• For use in Illinois.
• From an out-of-state retailer who doesn’t impose Illinois sales tax or charges a sales tax rate lower than the Illinois rate. In such cases, you’ll have to pay the difference to the Illinois Department of Revenue.
• That generally has sales tax if purchased from a retailer in Illinois.

The use tax in Illinois is the same as the state sales tax rates. You’ll have to pay 6.250% for general merchandise sales and 1% of the purchase price of qualifying food, drugs, and medical appliances.

I Didn’t Collect any Illinois Sales Tax During this Period. Do I Still Need to File a Return?

Yes. 

But you should still file a ‘zero’ return even if you didn’t collect any sales tax over the taxable period. 

Can I Get a Discount on My Illinois Sales Tax?

You'll be eligible for a discount if you file and pay your sales tax on time.

This discount allows you to claim 1.75% (.0175) of the retailers’ occupation tax and use tax collected or $5 per calendar year — whichever amount is greater. 

What Is the Penalty for Filing and/or Paying Illinois Sales Tax Late?

The penalty for failure to file Illinois sales tax is the greater of 2% of the tax due or $250.

If the taxpayer receives a notice of non-filing, an additional penalty may apply.

The penalty for failing to pay Illinois sales tax is progressive:

Late Payment Time Period	Illinois Sales Tax Late Payment Penalty
If paid within 30 days	2% of the tax due
If paid after 30 days but within 90 days	10% of tax due
If paid after 90 days but within 180 days	15% of tax due
If paid after 180 days	20% of tax due

Can I Get an Extension on Filing My Illinois Sales Tax Return? 

Contact the Illinois Department of Revenue to inquire about an extension to file and pay sales tax. 

Can I Amend an Illinois Sales Tax Return? 

Yes. You can amend an Illinois sales tax return online through MyTaxIllinois or by mail using the Amended Sales and Use Tax Return (Form ST-1-X).

How Often Will I Be Required to File and Pay Sales Tax in Illinois?

The more tax liability you have, the more often you’ll have to pay sales tax in Illinois. 

Most Illinois sales taxpayers are required to pay either monthly, quarterly, or annually by the 20th day of the month following the end of the taxable period.

Any retailer whose average monthly sales tax liability is $20,000 or more must pay ‘quarter-monthly payments.’ These payments are due on the 7th, 15th, 22nd, and last day of the same month.

Illinois Sales Tax Due Dates 

If a sales tax due date falls on a weekend or holiday, it’s due the following business day. 

Illinois monthly sales tax filing due dates are:

Taxable Period	Filing Due Date
January 2024	February 20, 2024
February 2024	March 20, 2024
March 2024	April 22, 2024
April 2024	May 20, 2024
May 2024	June 20, 2024
June 2024	July 22, 2024
July 2024	August 20, 2024
August 2024	September 20, 2024
September 2024	October 21, 2024
October 2024	November 20, 2024
November 2024	December 20, 2024
December 2024	January 21, 2025
January 2025	February 20, 2026

Illinois quarterly sales tax filing due dates:

Taxable Period	Filing Dates
Q1 (Jan-March) 2024	April 22, 2024
Q2 (Apr-June) 2024	July 22, 2024
Q3 (July-Sept) 2024	October 21, 2024
Q4 (Oct-Dec) 2024	January 21, 2025

Illinois semi-annual sales tax filing:

Taxable Period	Filing Dates
Year 2024	January 21, 2025

Let the Experts Handle Your Illinois Sales Taxes

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But not when you have Zamp to sweep away all the sales tax blues.

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