Sales Tax in Madison, Illinois in 2024

The combined sales tax rate for Madison, Illinois ranges from 6.85%-8.35%. Your total sales tax rate is the sum of the Illinois state tax (6.25%) and the special tax (0.60%-2.10%). You don’t pay city or county sales tax in Madison.

We'll walk you through how the sales tax rate is determined for Madison and address some common questions you may have. We'll also cover how to collect, audit, and remit sales tax in Madison.

Plus, we’ll share the best solution that will ensure you are always compliant across the entire sales tax lifecycle.

Disclaimer: Our sales tax data is updated on a quarterly basis.

Madison Sales Tax Rate 2024

Madison is located in Illinois, United States. Its minimum sales tax rate is 6.85%, and its maximum sales tax rate is 8.35%. These rates include local and state sales tax rates.

Here is how the Madison sales tax rates breaks down:

Tax Jurisdiction	Min. Rate	Max. Rate
State Tax	6.25%	6.25%
Special Tax	0.60%	2.10%
Combined Rate	6.85%	8.35%

County Sales Tax in Madison

Madison overlaps with 2 counties in Illinois. But as you can see in the table below, the county sales tax rate is 0.00% in each one.

County	Sales Tax Rate
Madison County	1.50%
St. Clair County	0.00%

Sales Tax Rates in Madison by Zip Codes and Districts

Let’s see the sales tax rates in Madison broken down by zip codes and districts:

District	Zip Codes	Combined Sales Tax Rate
MADISON COUNTY|MADISON CITY (MADISON COUNTY)|MADISON COUNTY FPD|MADISON COUNTY METRO-EAST MTD|MADISON COUNTY METRO-EAST PRD	62201, 62048, 62040, 62090, 62060	6.85%
ST. CLAIR COUNTY|MADISON CITY (ST. CLAIR COUNTY)|ST. CLAIR COUNTY FPD|ST. CLAIR COUNTY METRO-EAST MTD|ST. CLAIR COUNTY METRO-EAST PRD	62201, 62040, 62060	7.35%
MADISON COUNTY|MADISON CITY (MADISON COUNTY)|MADISON - BEND RD BUSINESS DISTRICT|MADISON COUNTY FPD|MADISON COUNTY METRO-EAST MTD|MADISON COUNTY METRO-EAST PRD	62040, 62060	7.85%
ST. CLAIR COUNTY|MADISON CITY (ST. CLAIR COUNTY)|MADISON - GATEWAY BUSINESS DISTRICT|ST. CLAIR COUNTY FPD|ST. CLAIR COUNTY METRO-EAST MTD|ST. CLAIR COUNTY METRO-EAST PRD	62201	8.35%

How Does the Madison Sales Tax Compare to the Rest of Illinois?

Madison’s minimum sales tax rate (6.85%) is only 0.60% higher than the lowest rate in Illinois, which is 6.25% in Golconda, among other places. It is 4.65% lower than Illinois’s highest sales tax rate, which stands at 11.50% in cities such as Norridge Village.

Madison’s maximum sales tax rate (8.35%) is 2.10% higher than the state's lowest rate and 3.15% lower than the highest rate.

To give you a better idea, here’s a comparison of Madison sales tax rates with a few other cities in Illinois:

City	Sales Tax Rates
Golconda	6.25%
Madison	6.85%-8.35%
Kincaid Village	7.25%
Wyoming	7.50%
Algonquin Village	8.00%-8.25%
Summit Village	9.50%
Markham	10.00%
Norridge Village	10.50%-11.50%

You can also compare the sales tax rate of Madison against the Illinois cities closest in population size:

• North Barrington Village's sales tax rate is 7.00%
• Westville Village's sales tax rate is 6.50%-7.50%

What Creates Sales Tax Nexus in Madison?

Madison follows the Illinois state sales tax law, as it’s located in Illinois. There are no separate nexus rules specifically for Madison other than the Illinois state tax law.

Read More: Check out our detailed guide on Sales Tax in Illinois. Illinois state sales tax nexus rules 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.

What Products Are Exempt from Madison Sales Tax?

These tax exemptions are granted by the Illinois sales tax law and apply to Madison as well. (There are no separate exemptions for Madison taxpayers.)

• 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.

Who Needs a Sales Permit in Madison?

A sales tax permit or seller's permit is typically issued by states in the United States. You can register for an Illinois seller's permit online at MyTax Illinois. You need a sales permit if you plan to sell any tangible personal property and other taxable services in Madison or anywhere in Illinois. As tax rates are different in every county, you’ll have to post a permit in every business location you plan to operate.

How to Collect Sales Tax in Madison

Since Illinois uses origin-based sales tax sourcing for intrastate sales and destination-based sales tax sourcing for interstate sales, the same applies to Madison as well. According to Illinois sales tax law, here’s how you can collect sales tax on:

• Intrastate Illinois sales: A sale is considered intrastate if it ships from an origin in Illinois to a buyer's address in Illinois. Illinois is an ‘origin-based’ sales tax sourcing state. This means that if both the seller’s and buyer’s address is in Illinois, you would charge the sales tax rate of the sale’s origination point. For instance, your business is located in North Barrington Village, Illinois, and you make a sale to a buyer in Madison, Illinois. Then, you’d charge the buyer the sales tax rate at your North Barrington Village location.

• Interstate Illinois sales: A sale is considered interstate if the item ships from outside Illinois and the seller isn’t otherwise “engaged in a business” in the state. In such cases, you’d generally charge the sales tax rate at your buyer’s location. For instance, if your business is located in Leander, Idaho, and you sell to a buyer in Madison, Illinois, you should charge the buyer the Madison sales tax rate.   

Learn more about origin-based and destination-based sales tax sourcing here.

How to File and Pay Sales Tax in Madison

Taxpayers have multiple options to file and pay Madison sales tax returns:

• 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)

• Or, you can say goodbye to the tedious paperwork and hello to stress-free sales tax management with Zamp. We help you automate sales tax filings, check your transactions, and manage the nitty-gritty of ongoing compliance without a third-party - wherever you are in the United States!
  • With our white-glove onboarding, rooftop accurate calculations, proactive nexus monitoring, expert tax professional services, and click-to-approve sales tax registrations & filings, we take care of all the sales tax responsibilities for you. You can focus on your business and clients without worrying about the complexities of sales tax. We also ensure that you always stay compliant.