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Illinois Sales Tax: Rates, Nexus, Exemptions, and Filing Requirements for Businesses

  • Illinois has a statewide sales and use tax rate of 6.25%, with additional local taxes possible.
  • Sales tax applies to tangible personal property and certain services; exemptions exist for most services, SaaS, agricultural items, digital goods, and specific entities.
  • Nexus for tax collection is established by physical presence or over $100,000 in sales in Illinois.
  • Exemptions require an exemption certificate, commonly the STAX-1 form.
  • Filing can be done electronically or by paper; electronic payments are required for liabilities of $20,000 or more; Illinois does not have sales tax holidays.

Source: sovos.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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