Illinois Sales Tax

Illinois Sales Tax Guide (2026)

6.25% statewide, now 10.5% in Chicago after the August 2026 transit increase, and the 200-transaction nexus test was repealed in January, so only the $100,000 receipts test remains.[1]

5 min read • Reviewed by Tax Advisory Team • Verified • Sources: IL DOR & ILCS
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Quick Facts

Sales Tax at a Glance

State base rate
6.25% [1]
Combined rate range
6.25%–11% [2]
Chicago combined rate
10.5% [3]
State grocery rate
0% since 1/1/26 [4]
Drugs & medical devices
1% state rate [1]
Sourcing rule
Destination-based [5]
Economic nexus
$100k, receipts only [6]
Tax structure
ROT on seller [7]
Latest change
NITA rate, 8/1/26 [3]
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Four Illinois changes landed in 2025 and 2026

Illinois has moved faster than almost any state recently. Anything written before mid-2026 is likely stale on rates and nexus:[6]

Chicago 10.25% → 10.5%, 8/1/26 200-transaction test repealed 1/1/26 State grocery tax ended 1/1/26 Destination sourcing widened 1/1/25 Vendor discount capped $1,000 Remote seller amnesty open now
Time sensitive: Illinois is running a remote retailer amnesty from August 1 to October 31, 2026, covering periods back to January 2021 and waiving penalties and interest on qualifying past-due liabilities.[6]
Estimate

Illinois sales tax calculator

Illinois · state rate 6.25%
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Estimate only. Confirm your address with IDOR’s MyTax Tax Rate Finder[2] before filing, or let CrownGlobe handle it.

Rates & Registration

Illinois Sales Tax Rates, Nexus & the ROT structure

Chicago rate components

State rate6.25%
Cook County1.75%
City of Chicago1.25%
NITA transit1.25%
Chicago combined10.5%

The transit authority was renamed from the RTA to NITA and its rate rose 0.25 points on August 1, 2026, taking Chicago from 10.25% to 10.5%.[3]

Who must register

The nexus test changed this year. Since January 1, 2026 a remote retailer registers on receipts alone: over $100,000 of Illinois gross receipts in the preceding 12 months, tested quarterly. The old 200-transaction alternative was repealed.[6]

It is not technically a sales tax: Illinois levies Retailers’ Occupation Tax on the seller for the privilege of selling, plus a complementary Use Tax on the buyer, which retailers collect as reimbursement.[7]

Compliance

Sales Tax Registration and Filing

One registration covers ROT and Use Tax across all Illinois jurisdictions.

How to register

  • Confirm nexus→
  • Form REG-1→
  • MyTax Illinois→
  • Certificate of Registration→
  • File Form ST-1

Remote retailers crossing the threshold must register by the end of the quarter in which they cross it. Paper filings take six to eight weeks.[8]

Filing & due dates

FrequencyAverage monthly liabilityDue
MonthlyOver $20020th of next month
Quarterly$50–$20020th after quarter
AnnualUnder $50Jan 20

Late filing costs the lesser of $250 or 2% of tax, rising to a $5,000 cap. Late payment runs 2% within 30 days and 10% after.[9]

Pricing

Sales Tax & Nexus Pricing

Multi Tax Filing – $50 Per State/Month

ServiceWhat’s Included
Multi-state registrationNexus tracking, permit setup, and state agency coordination.
Monthly filingSales tax returns filed in every registered state.
Exemption & audit supportCertificate handling and notice response.
Get Started with Multi-State Filing
Taxability

Taxable vs. exempt

Illinois taxes tangible goods at 6.25%, medicines at a reduced 1%, and generally does not tax services or SaaS at state level.[10]

Generally taxable

  • Tangible retail goods35 ILCS 120/2
  • Prepared & restaurant food35 ILCS 120/2-10
  • Candy, soft drinks & alcohol35 ILCS 120/2-10
  • Downloaded canned software86 Ill. Adm. Code 130.1935
  • Titled vehicles & watercraft35 ILCS 105/3-5
  • Unavoidable delivery chargesKean v. Wal-Mart

Exempt or reduced rate

  • Qualifying groceries0% state since 1/1/26
  • Drugs & medical appliancesReduced 1% rate
  • SaaS & cloud accessState level only
  • Manufacturing machinery35 ILCS 120/2-5(14)
  • Farm machinery35 ILCS 120/2-5(2)
  • Sales for resale on Form CRT-6135 ILCS 120/1
Worth flagging: Chicago taxes cloud computing separately under its Personal Property Lease Transaction Tax, which rose to 15% on January 1, 2026. A SaaS sale untaxed by the state can still be taxable in the city.[11]
Reference

Glossary of key terms

Retailers’ Occupation Tax
Illinois tax on the seller for the privilege of making retail sales in the state.
Use Tax
The complementary tax on the buyer, collected by retailers as reimbursement for their ROT.
NITA
The Northern Illinois Transit Authority, renamed from the RTA, whose rate rose in August 2026.
Qualifying food
Groceries for off-premises consumption, now 0% at state level but taxable locally in many areas.
Destination sourcing
Charging the combined rate at the customer’s delivery address rather than the seller’s location.
Certificate of Resale
Form CRT-61, documenting that a purchase is for resale and outside ROT.
FAQ

Sales Tax FAQs

6.25% at state level on general merchandise, with a reduced 1% rate on drugs and medical appliances. Combined rates run from 6.25% up to 11% in some jurisdictions.

10.5% since August 1, 2026, up from 10.25%. That is 6.25% state, 1.75% Cook County, 1.25% city and 1.25% NITA transit.

Not at state level. The 1% state grocery tax ended on January 1, 2026, but localities may impose their own 1% grocery tax by ordinance, and over 600 have done so.

Over $100,000 of Illinois gross receipts in the preceding 12 months, tested quarterly. The 200-transaction alternative was repealed effective January 1, 2026.

Generally not at state level, because no copy of the software transfers to the customer. Chicago separately taxes cloud computing at 15% under its lease transaction tax.

It depends on whether the buyer could avoid it. A separately stated delivery charge the customer could decline, such as by collecting in store, is not taxable. An unavoidable charge is.

Verification

Sources & methodology

  1. IL DOR – Sales & Use Tax Rates
  2. IL DOR – FY 2026-10-A Rate Changes
  3. IL DOR – FY 2026-34 NITA Rate Change
  4. IL DOR – FY 2026-03 Grocery Tax Changes
  5. IL DOR – FY 2025-10 Destination Sourcing
  6. IL DOR – FY 2026-12 Nexus Changes
  7. IL DOR – Sales & Use Tax Overview
  8. IL DOR – Pub-113 Registering
  9. IL DOR – Pub-103 Penalties (PDF)
  10. IL DOR – Is Computer Software Taxable?
  11. IL DOR – FY 2026-13 Service Occupation Tax (PDF)
  12. ILCS – 35 ILCS 120 Retailers’ Occupation Tax
  13. IL DOR – ST-1 Instructions
  14. IL DOR – CRT-61 Resale Certificate
Methodology: Every figure is checked against the Illinois Department of Revenue or the Illinois Compiled Statutes directly, never copied from a third-party guide. Illinois changed rates and nexus rules four times across 2025 and 2026, so this page is reviewed each quarter.
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