Illinois eliminates 200-transaction economic nexus threshold

What changed

Illinois is simplifying its economic nexus rules. Under HB 2755, effective January 1, 2026:

• 200-transaction test removed: Remote sellers will no longer trigger sales tax obligations based on transaction counts.
• $100,000 gross sales threshold remains: Remote sellers must collect Illinois sales tax only if their sales into the state exceed $100,000 annually.

This aligns Illinois with states like Utah and New Jersey, which have recently eliminated transaction thresholds.

The bill also creates two amnesty programs:

• General amnesty (Oct 1–Nov 15, 2025): Covers liabilities from mid-2018 through mid-2025. See our full writeup: Illinois Tax Amnesty 2025.
• Remote retailer amnesty (Aug 1–Oct 31, 2026): Offers simplified rates (9% for most items, 1.75% for food) on 2021–2026 transactions.

Why this matters

• Simplified compliance: Small sellers no longer need to worry about hitting 200 low-dollar transactions.
• Remote sellers get relief: The change removes an arbitrary filing trigger that caught many businesses with high transaction counts but modest Illinois revenue.
• Amnesty opportunities: Two programs (2025 and 2026) give businesses a chance to clean up liabilities without penalties or interest.
• Forward-looking planning: Sellers expanding into Illinois should now focus on gross sales only when assessing nexus risk.

If you use TaxCloud: Our system already tracks Illinois sales against the $100,000 threshold—no need to worry about transaction counts. And if you’re carrying past-due liabilities, our team can help you prepare for the 2025 and 2026 amnesty windows.

Need the latest Illinois rates? See our full Illinois sales tax guide for state, county, and local details.

Selling in Chicago? Remember that local rates apply on top of the state rate. Check out our Chicago sales tax guide for the latest city, county, and special district rates.

Next steps

• Review your Illinois nexus footprint. After Jan 1, 2026, transaction counts are irrelevant—only sales totals matter.
• If you’ve been registered in Illinois solely due to the 200-transaction rule, consult a tax advisor about deregistration once the change takes effect.
• Flag the 2025 and 2026 amnesty periods on your compliance calendar. These are rare opportunities to settle old liabilities without penalties.
• Keep monitoring official Illinois Department of Revenue updates as implementation guidance is released.