Illinois Sales Tax Basics: Rate, Nexus, and Filing
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Full transcript
Overview
Illinois sales tax is easier to follow when the main rules are explained clearly. Here's a quick breakdown of the basics.
Who administers it
Illinois sales tax is administered by the Illinois Department of Revenue.
State and local rates
The WGA page lists Illinois' statewide base sales tax rate as 6.25%. Local rates can stack on top and are generally based on the delivery address.
Economic nexus
In simple terms, nexus means a business may have enough connection to the state for its sales tax responsibilities to need review. For remote sellers, the WGA page lists Illinois' economic nexus threshold as $100,000 in sales or 200 transactions.
Filing frequency
The WGA page notes that filing may be monthly, quarterly, or annually, depending on liability. The bookkeeping goal is to keep collected tax aligned with the filing schedule that applies.
What to watch for
One Illinois watch-out: retailers occupation tax sourcing rules differ for in-state versus remote sellers, and Chicago layers several of its own taxes on top.
How we help
White Glove Accounting helps keep taxable sales, collected tax, and filing records organized around the state requirements.
Illinois sales tax at a glance
- Administered by
- Illinois Department of Revenue
- Statewide base rate
- 6.25%, with local rates on top
- Economic nexus
- $100,000 in sales or 200 transactions
- Filing frequency
- Monthly, quarterly, or annually by liability
Watch for: Retailers’ Occupation Tax sourcing rules differ for in-state versus remote sellers, and Chicago layers several of its own taxes on top.
Rates and thresholds as of August 2026. They change, so verify anything time-sensitive with the Illinois Department of Revenue.
Read the Illinois bookkeeping guideWant your Illinois sales tax kept current?
We track taxable sales, reconcile collected tax, and prepare and file Illinois sales tax returns on the schedule the Illinois Department of Revenue assigns you. Tell us about your business and we'll send a written scope and price.
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