Illinois 2026 remote seller amnesty (August - October 2026) — how to prepare & make the most of it
From August 1 to October 31, 2026, Illinois will run a one-time amnesty program for remote retailers. Sellers can pay outstanding taxes from 2021–2026 at simplified flat rates — 9% for most goods, 1.75% for food — and have all penalties and interest waived. This is a big deal for ecommerce sellers, CPAs, and finance teams managing Illinois sales tax exposure, and here’s how to take full advantage.
Written by Alex Lamachenka
Head of DemandGen
Published
TL;DR: Remote sellers get an early heads-up. A special Illinois amnesty window opens in 2026. Mark it now, so you don’t scramble later.
- Illinois passed HB 2755 / Public Act 104-0006, which creates a Remote Retailer Amnesty Program (RRAP).
- Amnesty runs Aug 1–Oct 31, 2026 and applies to sales from Jan 1, 2021 through June 30, 2026.
- Remote retailers can use simplified rates instead of tracking every local jurisdiction (9% for most items, 1.75% for food).
- As long as you pay in full during the window, penalties and interest are waived.
What changed
Illinois’ House Bill 2755 created a special remote retailer amnesty program to run from August 1 through October 31, 2026. (ilga.gov)
Here’s what it does:
- Covers Illinois Retailers’ Occupation Tax (ROT) liabilities from Jan 1, 2021 through June 30, 2026
- Applies flat rates — 9% for most goods, 1.75% for food — instead of recalculating local rates across thousands of jurisdictions
- Waives all penalties and interest if full payment is made during the window
- Runs in addition to Illinois’ 2025 amnesty program, which applies more broadly to all taxpayers with liabilities from 2018–2024
Why this matters
This isn’t just a policy note — it’s a chance to reset.
- If you’ve been selling into Illinois without ROT compliance (2021–2026): This is your opportunity to wipe the slate clean.
- If you run high-volume, low-dollar sales (marketplaces, subscription boxes, DTC brands): The flat 9% rate may simplify what would otherwise be a nightmare of local rate tracking.
- If you’re a CPA, controller, or finance lead: Three months isn’t much time to reconcile five years of records — get this on the radar now.
- If you’re already considering the 2025 amnesty: Know that it covers 2018–2024. The 2026 program picks up right after.
How this differs from Illinois’ 2025 amnesty
Illinois is running two amnesty programs back-to-back:
- 2025 program (Oct–Nov 2025): For all taxpayers, covering 2018–2024.
- 2026 program (Aug–Oct 2026): For remote retailers only, covering 2021–2026 with simplified flat rates.
Compare with our full breakdown of the 2025 Illinois Tax Amnesty Program.
Remember, if you use TaxCloud…
Our platform will:
- Track Illinois’ $100k economic nexus threshold automatically
- Apply the simplified 2026 amnesty rates (9%/1.75%) during the window — no manual reconfigurations
- Keep you compliant going forward so you don’t land in amnesty territory again
If you have liabilities from 2021–2026, this is your cleanup moment. From there, TaxCloud helps you move forward with confidence.
Next steps
- Mark your calendar: Aug 1–Oct 31, 2026
- Review your Illinois sales from 2021–2026 to flag liabilities
- Work with your CPA to confirm whether simplified rates help or hurt
- Compare both programs (2025 vs 2026) to see which fits your history
- Watch for IDOR implementation details and guidance
FAQs
It runs from August 1 through October 31, 2026.
Remote retailers that made taxable sales into Illinois between Jan 1, 2021 and June 30, 2026 but didn’t collect or remit ROT.
Illinois will apply simplified flat rates: 9% for most goods and 1.75% for food.
The 2025 program (Oct–Nov 2025) covers all taxpayers for 2018–2024. The 2026 program (Aug–Oct 2026) is only for remote retailers and covers 2021–2026.
Other US Sales Tax Updates
Florida’s 2025 Back-to-School Sales Tax Holiday
Florida will hold its Back-to-School Sales Tax Holiday from August 1–31, 2025. During this time, shoppers won’t pay sales tax on clothing under $100, school supplies under $50, learning aids under $30, and personal computers up to $1,500. Online purchases also qualify if the order is placed during the holiday.
Texas will tax marketplace seller fees from Oct 1, 2025
Starting October 1, 2025, Texas will require marketplaces to charge sales tax on the commission fees they take from sellers.
Louisiana Issues Guidance on Digital Product Sales Tax
Effective January 1, 2025, Louisiana expanded sales tax to digital products and services. Updated guidance issued in August 2025 clarified the application to SaaS, streaming, apps, ebooks, and related offerings.