Illinois sales tax rates 2026: Calculator, nexus, and due dates

Illinois sales tax rates by city and county

Illinois applies sales tax at multiple levels. The 6.25% state base rate applies to general merchandise, but counties, cities, and special districts add local taxes on top, which means the combined rate varies by location.

Because Illinois uses destination-based sourcing for remote sellers, you charge the rate based on where your customer receives the product, not where your business is located.

A sale shipped to Chicago requires 10.25%, while a sale shipped to Aurora requires 8.25%. Illinois centralizes most filings through the Illinois Department of Revenue, although certain local taxes may be administered separately.

Major Illinois cities and their 2026 combined rates:

Illinois sales tax calculator

Can’t find your city? Use our Illinois sales tax calculator to look up the exact sales tax rate for any Illinois address.

TaxCloud’s sales tax calculation engine calculates to the rooftop level — because rates can vary within the same ZIP code, and zip-level estimates aren’t accurate enough for compliance.

Illinois nexus thresholds

Every business with customers in Illinois is subject to nexus laws. You are required to register and collect sales tax if you trigger “nexus” through a physical presence in the state or by exceeding specific economic thresholds as a remote seller.

Illinois economic nexus

You will trigger Illinois economic nexus if you exceed the following thresholds in the prior 12-month lookback period:

• Sales threshold: $100,000 in total gross sales (including marketplace sales).
• Transaction threshold: None. Illinois eliminated the 200-transaction threshold for remote sellers.

Illinois physical nexus

You will trigger Illinois physical nexus (and must register from dollar one) if you have:

• Physical presence: An office, store, warehouse, or other place of business in Illinois.
• Personnel in Illinois: Employees, contractors, or sales representatives operating in the state.
• Affiliate presence: Third-party affiliates or representatives conducting business on your behalf.
• Property in Illinois: Owning or leasing equipment, inventory, or other business property within the state.

Illinois sales tax permit registration

Once you trigger nexus, you must register with the Illinois Department of Revenue before you can legally collect sales tax.

Operating without a permit after crossing the threshold exposes you to back taxes, penalties, and interest from the date nexus was established — not the date you registered.

1. Gather info: You’ll need your FEIN, estimated sales, business structure details, and bank account information.
2. Submit: Use the MyTax Illinois portal to apply for your Seller’s Permit.
3. Note your effective date: Illinois requires you to begin collecting sales tax on the date nexus was triggered — not the date you registered. If there’s a gap, you may owe back taxes for that period.

If you have questions about your Illinois registration or compliance history, TaxCloud’s U.S.-based support team typically responds within 2 hours and can review your setup directly.

Illinois sales tax calculation rules

Illinois’s sales tax rules require careful attention because multiple local taxes may apply depending on where your customer receives the product. The total rate depends on your customer’s delivery address, not your business location. Beginning January 1, 2026, Illinois also applies destination-based sourcing to certain service transactions that include the transfer of tangible personal property. This means some service providers must calculate tax based on the customer’s location rather than the seller’s office.

What is taxable in Illinois?

Taxability in Illinois is determined by how a product is classified under state law. Below is a high-level summary of how major categories are generally treated for 2026:

• Tangible personal property: Most physical goods are taxable unless a specific exemption applies.
• SaaS, software, and digital products: Illinois generally does not tax digital goods (eBooks, music) and Software as a Service (SaaS).
• Food & groceries: Illinois typically does not tax grocery staples. However, prepared or heated food sold for immediate consumption is generally taxable at standard rates.
• Clothing: Clothing and footwear are generally taxable at standard rates, with exceptions for the August back-to-school tax holiday.

What is tax exempt in Illinois?

Below is a high-level summary of items that are generally tax-exempt in Illinois:

• Essential exemptions: Illinois provides specific exemptions for items such as agricultural machinery and specific building materials used in qualifying projects.

Illinois sales tax return due dates and filing frequency

Filing frequency is assigned by the Illinois Department of Revenue based on your reported or estimated sales volume. In Illinois, returns are generally due on the 20th of the month following the reporting period.

Critical 2026 compliance notes:

• Quarterly threshold monitoring: Remote sellers must review the $100,000 economic nexus threshold at the end of each calendar quarter using a rolling 12-month lookback period.
• Collection start date: If you exceed the economic nexus threshold, you must begin collecting tax on the first day of the next calendar quarter.
• Reduced-rate categories: Illinois applies reduced rates to certain items such as qualifying food, drugs, and medical appliances. These must still be reported correctly on your return.
• Zero-return requirement: If you are registered but had no taxable sales during the reporting period, you must still file a return to avoid penalties.

Illinois and the SST program

No, Illinois is not a member of the Streamlined Sales Tax (SST) program.

However, because TaxCloud is a Certified Service Provider of the SST Program, we can save your business time and money on state registration and filing costs in 24 SST-member states — and handle your Illinois filing.

Calculate your potential tax filing savings through the SST program here.

The latest Illinois sales tax changes

We track Illinois’s shifting sales tax landscape so you don’t have to.

Here are latest updates:

• Chicago increases PPLTT rate to 15%, impacting SaaS and cloud providers: Chicago has approved a significant increase to its Personal Property Lease Transaction Tax. The PPLTT rate rises from 11% to 15%. SaaS companies and other digital service providers must update the rate they charge Chicago customers immediately to avoid under-collection.
• Illinois eliminates state grocery sales tax starting January 1, 2026: Illinois has eliminated its 1% state sales tax on grocery items. While the state-level grocery tax is ending, local grocery taxes may still apply depending on the location of the sale.
• Illinois expands destination sourcing rules for certain service transactions: Illinois has expanded its destination-based sales tax sourcing rules. From January 1, 2026, the change will apply to certain sales of service that involve the transfer of tangible personal property, requiring sellers to source tax based on the customer’s location.