Illinois Sales Tax and Use Tax
What is the Illinois sales tax?
Taxes in Illinois are origin-based 1, meaning the Illinois sales tax rate is based, or determined from, the location where a sale originates
To see a full breakout of Illinois sales tax rates by state, county, city and special district, use our easy Illinois sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate Illinois sales tax totals.
What is the Illinois use tax?
The Illinois state use tax rate is the same as the state rate, but there is no use tax collected for county, city or special districts.
If you reside in IL, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay Illinois sales tax or use tax?
In general, a business must collect and remit all applicable Illinois sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
Illinois says that an out-of-state seller is required to collect tax if they can be defined as "retailers maintaining a place of business". Illinois does not currently have additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in Illinois, you can usually get free help by contacting the Illinois Department of Revenue. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in Illinois. Click here for listing of recommended resources.
Special rules applying to Illinois sales tax and use taxes
- Shipping is not taxable if separately stated and other specific terms are met.
- Finance charges are exempt from sales tax.
- Clothing is taxed at the same rate as the general sales tax.
- Illinois Sales tax holidays have been held in the past, but have not been authorized yet this year.
Since Illinois legislators can vote to change the Illinois sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of IL state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of Illinois sales tax jurisdictions.