# Illinois Sales Tax 2026: Rates, Chicago’s 10.50%, the CRT-61 and the New Remote Seller Rules

> Illinois sales tax is 6.25% statewide and 10.50% in Chicago since August 1, 2026. The $100,000 test, CRT-61 rules, and the amnesty ending October 31.

Source: https://taxdo.com/resources/countries/us/illinois

Last updated: 2026-10-08

_Why Illinois calls its sales tax something else, how the 6.25% state rate becomes 10.50% in Chicago, who needs a Certificate of Registration, how a CRT-61 protects a seller, and what the 2026 changes mean for sellers outside the state._

On January 1, 2026, Illinois stopped counting orders. A seller outside the state now owes Illinois sales tax on a single test, $100,000 of sales to Illinois customers, and the old 200-transaction route is gone. What that seller collects starts at the 6.25% state rate and rises with local taxes: in Chicago, the combined rate has been 10.50% since August 1, 2026.

Illinois does not, in law, have a sales tax. The retailer owes Retailers’ Occupation Tax on its receipts and recovers it by collecting use tax from the buyer; the Illinois Department of Revenue’s own audit manual explains that _“the term ‘sales tax’ actually refers to several tax acts.”_ The distinction is not academic. It decides whose location sets the rate, whether a delivery charge is taxed, and which return a business files.

Three more changes arrived this year. Groceries left the state tax base on January 1, 2026, though cities and counties may now tax them locally. Sellers who cannot show where their sales were delivered face a 15% rate. And a remote-retailer amnesty covering sales since 2021 closes on October 31, 2026\. This guide explains how the system works, what each kind of seller has to do, and where Chicago adds rules of its own.

## **01 ·** **Snapshot: Illinois sales tax at a glance**

_Every figure here is restated, with its source, in the section that deals with it._

| **ITEM**                            | **ILLINOIS**                                                                                                                                                     |
| ----------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Tax authority**                   | Illinois Department of Revenue (IDOR); filing through MyTax Illinois                                                                                             |
| **Tax system**                      | Retailers’ Occupation Tax on the seller, Use Tax on the buyer, plus Service Occupation and Service Use Taxes for service providers                               |
| **State rate, general merchandise** | 6.25%: a 5% state share, 1% for the municipality or county and 0.25% countywide                                                                                  |
| **Groceries**                       | State 1% tax ended January 1, 2026\. Municipalities and counties may impose a local 1% grocery tax; transit taxes still apply                                    |
| **Drugs and medical appliances**    | 1% state rate continues                                                                                                                                          |
| **Chicago combined rate**           | 10.50% since August 1, 2026 (10.25% from January 1, 2016, to July 31, 2026)                                                                                      |
| **Local taxes**                     | Home rule, non-home rule, county and transit taxes (NITA, formerly RTA, and the Metro-East Mass Transit District), administered by IDOR                          |
| **Remote seller threshold**         | $100,000 of sales to Illinois purchasers in the preceding 12 months, reviewed quarterly. No transaction test since January 1, 2026                               |
| **Sourcing**                        | Remote retailers and marketplaces: destination rate since 2021\. Illinois retailers shipping from Illinois inventory: origin rate                                |
| **Marketplace facilitators**        | Treated as the retailer for facilitated sales since January 1, 2020                                                                                              |
| **Software and SaaS**               | Canned software taxable, including downloads, unless a qualifying license applies. SaaS not taxed by the state. Chicago taxes cloud software under its lease tax |
| **Registration**                    | Certificate of Registration through MyTax Illinois (Form REG-1). No fee; about one to two business days online                                                   |
| **Resale certificate**              | Form CRT-61 with the buyer’s Illinois account ID or resale number. Blanket certificates updated at least every three years                                       |
| **Return and due date**             | Form ST-1, due the 20th of the month after the period                                                                                                            |
| **Filing frequency**                | Monthly above $200 average monthly liability; quarterly $50 to $200; annual under $50                                                                            |
| **Penalties**                       | Late payment 2% (1 to 30 days) or 10% (31 days or more); late filing the lesser of $250 or 2%; 50% for fraud                                                     |
| **Statute of limitations**          | Three years; no limit where no return was filed or a return was fraudulent                                                                                       |
| **Voluntary disclosure**            | Four-year look-back, penalties waived, interest due (Form BOA-2). Remote-retailer amnesty open August 1 to October 31, 2026                                      |

## **02 ·** **60-second self-check**

Six questions. A yes to any of them sends you to the track that deals with it.

| **QUESTION**                                                                                                     | **IF YES**                                                                                                              |
| ---------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- |
| **Did your sales to Illinois purchasers reach $100,000 in the 12 months ending with the last calendar quarter?** | You collect Illinois tax from the first day of the next quarter, for a year. Read Track 1 or Track 2.                   |
| **Is any of your stock, staff, office or sales agents located in Illinois?**                                     | That is a physical presence, and the remote-seller test does not apply. Read Track 1.                                   |
| **Were you over the threshold in an earlier year without registering?**                                          | Read 3.4 before registering: the remote-retailer amnesty closes on October 31, 2026.                                    |
| **Are marketplaces part of your sales mix?**                                                                     | The marketplace collects on the sales it facilitates, and those sales can drop out of your own threshold. Read Track 3. |
| **Does your catalog include software, apps or SaaS sold to Chicago customers?**                                  | The state and the City treat it differently. Read Track 3.                                                              |
| **Do you sell in Illinois to businesses that resell what they buy?**                                             | Take a valid CRT-61 from each one, or charge tax. Read Track 4.                                                         |

## **03 ·** **Track 1: Sellers based in another US state**

_Written for the tax or finance lead at a US company outside Illinois that ships goods to Illinois customers._

### **3.1 The $100,000 test, and nothing else**

From January 1, 2026, IDOR applies one threshold. A remote retailer is engaged in business in Illinois if it makes [“$100,000 or more in cumulative gross receipts of sales of TPP to purchasers in Illinois during the lookback period”](https://tax.illinois.gov/research/publications/bulletins/fy-2026-12.html). Public Act 104-0006 removed the alternative 200-transaction test, so a seller of small, frequent orders that crossed the line on volume alone no longer does.

The look-back is a rolling one. IDOR’s guidance for remote sellers, [PIO-125](https://tax.illinois.gov/content/dam/soi/en/web/tax/research/taxinformation/sales/documents/pio-125.pdf), has a retailer review its sales at the end of each calendar quarter for the preceding 12 months. A seller over the line begins collecting on the first day of the following quarter and, according to [IDOR bulletin FY 2024-08](https://tax.illinois.gov/research/publications/bulletins/fy-2024-08.html), collects for one year before it tests again.

Marketplace sales are treated differently from many states. The 2024 bulletin excludes from a remote retailer’s own threshold the sales it makes through a marketplace, provided the retailer holds a certification that the marketplace facilitator has assumed the retailer’s duties for those sales. The rule predates the 2026 changes and has not been restated since, so it is worth confirming the certification is on file.

### **3.2 Physical presence**

The threshold is only for sellers with no physical presence. IDOR defines that presence as [“having or maintaining within Illinois, directly or by a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or any agent or other representative operating within Illinois”](https://tax.illinois.gov/content/dam/soi/en/web/tax/research/taxinformation/sales/documents/pio-125.pdf). A retailer that fulfills any orders from its own inventory in Illinois is not a remote retailer at all. The exception is inventory held for marketplace sales where the seller is not responsible for the tax, which does not by itself create a presence.

### **3.3 Registration and the destination rate**

A remote retailer registers through MyTax Illinois for an ST-1 account and collects state and local Retailers’ Occupation Tax at the rate of the delivery address. Illinois moved remote sellers to destination sourcing on January 1, 2021, under its [Leveling the Playing Field for Illinois Retail Act](https://tax.illinois.gov/research/taxinformation/sales/level-the-playing-field.html). A seller below the threshold may register voluntarily to collect use tax as a convenience to its customers.

The 2026 act added a sting. If a seller cannot produce the information needed to establish where its sales were delivered, IDOR taxes those receipts at [15%](https://tax.illinois.gov/research/publications/bulletins/fy-2026-12.html), and may use that rate in an audit of periods before 2026\. Address-level records are no longer a nicety.

### **3.4 If you should already have been collecting: amnesty and voluntary disclosure**

The window that matters now is the [2026 Remote Retailer Tax Amnesty Program](https://tax.illinois.gov/research/publications/bulletins/fy-2026-28.html), open from August 1 to October 31, 2026\. It covers unpaid tax on sales made between January 1, 2021, and June 30, 2026\. If the eligible tax is paid in full during the window, or through a repayment plan that is completed, IDOR waives the related penalties and interest. The program is for remote retailers with no physical presence in Illinois; the retailer must be registered, hold a MyTax Illinois logon and apply electronically. A retailer already under audit should speak to its auditor first.

After October 31, the route is IDOR’s [Voluntary Disclosure Program](https://tax.illinois.gov/programs/voluntarydislosure.html). It limits the look-back to four years and eliminates penalties once the tax and interest are paid within 60 days of billing; interest is not waived. The application is [Form BOA-2](https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/misc/documents/boa/boa-2.pdf), filed before IDOR opens an audit or investigation. Two conditions trip up applicants: the business must register, and it cannot use the program for tax it collected from customers and never remitted. IDOR’s pages make no provision for anonymous applications, although a representative may act under a power of attorney.

Before either filing, a [sales tax exposure analysis](https://taxdo.com/services/tax-exposure-analysis) sizes the liability by quarter, and a [nexus assessment](https://taxdo.com/services/nexus-assessment) shows where else the same facts have created obligations.

## **04 ·** **Track 2: Sellers based outside the United States**

_A non-US manufacturer selling direct to Illinois customers, worked through one fictional company. Read this if you are its founder or finance director._

Illinois applies the same remote-retailer test whatever the seller’s home country. A foreign company with no office, staff or inventory in Illinois is a remote retailer, measured against $100,000 of sales to Illinois purchasers like any seller in Indiana or Texas.

### **4.1 Worked example: Saltillo Timber Works, S.A. de C.V.**

Saltillo Timber Works is a furniture maker in Coahuila, Mexico. It sells solid-wood tables and shelving through its own online store, built on WooCommerce, and through a US marketplace that has certified it assumes the retailer’s duties for marketplace sales. Goods ship by freight carrier from Mexico to the customer’s door. In the 12 months ending September 30, 2026, its own store sold $140,000 of furniture to Illinois addresses; the marketplace sold another $300,000.

| **STEP**                       | **SALTILLO TIMBER WORKS’ POSITION**                                                                                                                     |
| ------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **1\. Measure the threshold**  | Own-store sales of $140,000 exceed $100,000\. The $300,000 of certified marketplace sales is excluded from its own test, and the result does not change |
| **2\. When collection starts** | The look-back ends on September 30, 2026, so the company collects from October 1, 2026, for one year                                                    |
| **3\. Register**               | An ST-1 account through MyTax Illinois as an out-of-state retailer                                                                                      |
| **4\. Who collects on what**   | The marketplace on its own sales; Saltillo Timber Works on its web-store sales                                                                          |
| **5\. Which rate**             | The destination rate of each delivery address, found in the Tax Rate Finder                                                                             |

Take one order. In November 2026 a customer in Chicago buys a $1,800 dining table. At Chicago’s 10.50% the tax is $189.00, not the $112.50 the 6.25% state rate alone would produce. The company adds a $150 delivery charge, and there is no option to collect the table in person. Under [86 Ill. Adm. Code 130.415](https://ilga.gov/commission/jcar/admincode/086/086001300D04150R.html), which follows the Illinois Supreme Court’s 2009 decision in Kean v. Wal-Mart Stores, a delivery charge is taxable where there is an _“inseparable link”_ between the sale and the delivery, and the test is whether the buyer could have bought the item at the stated price without it. Here the buyer could not, so the $150 is taxable too.

Two changes would alter the picture. If the company moved stock into a warehouse in Joliet, it would stop being a remote retailer and would collect at the origin rate of the warehouse location on orders filled from it. And had it crossed the threshold in 2024 without registering, it would be a candidate for the amnesty in section 3.4, provided it registers and applies by October 31, 2026\. For a store on WooCommerce, our [WooCommerce integration](https://taxdo.com/integrations/woo) applies the delivery-address rate at checkout.

## **05 ·** **Track 3: Marketplaces, software and delivery**

_For operators: marketplace sellers, platform builders and anyone selling software or SaaS into Illinois and Chicago._

### **5.1 Marketplace facilitators**

Since January 1, 2020, a marketplace facilitator that meets the threshold, now $100,000 counting its own sales and those of its marketplace sellers, has been treated as [the retai](https://tax.illinois.gov/research/publications/bulletins/fy-2024-08.html)[l](https://tax.illinois.gov/research/publications/bulletins/fy-2024-08.html)[er](https://tax.illinois.gov/research/publications/bulletins/fy-2024-08.html) for the sales it facilitates, and it collects destination-based Retailers’ Occupation Tax on them. A marketplace seller remains responsible for its sales through every other channel.

### **5.2 Software at the state level**

Illinois taxes canned software, and the method of delivery does not matter. IDOR’s tax matrix, [PIO-101](https://tax.illinois.gov/content/dam/soi/en/web/tax/research/taxinformation/sales/documents/pio-101-illinois-tax-matrix.pdf), states that prewritten software _“regardless of the form in which it is transmitted, including electronic means (e.g., downloaded), is subject to tax.”_ A license of canned software escapes the tax only if it meets five conditions in 86 Ill. Adm. Code 130.1935: a written agreement signed by both parties, restrictions on duplication and use, a ban on transfer without the licensor’s permission, a replacement or archival-copy policy, and the return or destruction of copies at the end of the term. From January 1, 2025, leases and rentals of software under a qualifying license are exempt as well.

Software as a service is outside the state tax. In a December 2025 letter ruling, [ST 25-0070-GIL](https://taxarchive.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2025/st25-0070-gil.pdf), IDOR wrote that software _“only accessed remotely is not subject to tax.”_ Downloaded books, music and similar digital goods are also untaxed by the state. No enacted state law changes that position for 2026 or 2027.

### **5.3 Chicago’s cloud tax**

Chicago is the exception inside Illinois. The City treats the remote use of software within Chicago as a nonpossessory computer lease under its [Personal Property Lease Transaction Tax](https://www.chicago.gov/city/en/depts/fin/supp%5Finfo/revenue/tax%5Flist/personal%5Fpropertyleasetransactiontax.html), a position restated in a [private letter ruling of August 27, 2025](https://www.chicago.gov/content/dam/city/depts/rev/supp%5Finfo/TaxPrivateLetterRulings/7550%20PLR%208.27.25%20-%202.pdf). The rate is now [15% of the lease or rental price](https://codelibrary.amlegal.com/codes/chicago/latest/chicago%5Fil/0-0-0-2606475): the City raised it from 9% to [11% on January 1, 2025](https://www.chicago.gov/content/dam/city/depts/rev/supp%5Finfo/TaxPublicationsandReports/Chicago%20Tax%20Rate%20Changes%20-%20January%202025.pdf), and the City Council raised it again to 15% in an amendment passed on December 19, 2025\. The Municipal Code also provides that the rate _“shall not be increased prior to January 1, 2028.”_ Under the Code the customer, as lessee, pays the tax with each payment; the tax is administered by the City’s Department of Finance rather than IDOR. A SaaS subscription used in Chicago is therefore taxed at 15%, more than the 10.50% on goods sold in the city, although the state does not tax it at all. For how other states treat SaaS, see [our state-by-state SaaS guide](https://taxdo.com/resources/blog/post/us-sales-tax-saas).

### **5.4 Delivery charges**

Illinois taxes delivery on its own logic, set out in [86 Ill. Adm. Code 130.415](https://ilga.gov/commission/jcar/admincode/086/086001300D04150R.html). A separately stated delivery charge is not taxable if the buyer could take the goods at the stated price without it, for example by collecting them. If delivery is compulsory, the charge is part of the taxable sale. The question the regulation asks is whether the purchaser had the option to buy the property _“with no added transportation and delivery charge”_.

## **06 ·** **Track 4: Businesses based in Illinois**

_Registration, certificates and returns, seen from the desk of the owner or in-house accountant of an Illinois business._

### **6.1 The Certificate of Registration**

You must register if you are [“engaged in the business of selling, leasing, or renting at retail tangible personal property in Illinois for use or consumption”](https://tax.illinois.gov/research/publications/pubs/retailers-overview-of-sales-and-use-tax/registering-your-business.html). IDOR issues a Certificate of Registration after you apply through MyTax Illinois, or on paper with Form REG-1\. There is [no registration fee](https://tax.illinois.gov/questionsandanswers/answer.286.html). An application through MyTax Illinois takes [approximately one to two business days](https://tax.illinois.gov/businesses/registration.html); paper applications take several weeks. IDOR may require a bond, capped by [35 ILCS 120/2a](https://ilga.gov/legislation/ilcs/documents/003501200K2a.htm) at the lower of three times your average monthly liability or $50,000.

Trading without a certificate is a crime. Under [35 ILCS 120/13](https://ilga.gov/legislation/ilcs/documents/003501200K13.htm) it is a Class A misdemeanor, and each day in business without a certificate counts as a separate offense. The “reseller’s license” people search for is not a separate license: a retailer uses the account ID on its Certificate of Registration, and IDOR also issues resale numbers. If your registration is outstanding, our [sales tax registration service](https://taxdo.com/services/sales-tax-registration) handles the application.

### **6.2 Resale certificates: the CRT-61**

A sale for resale is exempt only if the buyer gives you a certificate of resale, usually on Form CRT-61\. According to [IDOR’s CRT-61 instructions](https://tax.illinois.gov/forms/sales/crt-61-instructions.html), it must show the seller’s name and address, the purchaser’s name and address, a description of the property, a statement that it is bought for resale, the purchaser’s signature and date, and the purchaser’s Illinois retailer or reseller account ID. A buyer from outside Illinois may instead give a certificate of resale to an out-of-state purchaser. A federal EIN is not a substitute; the certificate needs the Illinois number.

Certificates do not last forever. IDOR’s instructions state that blanket certificates _“must be updated at least once every three years”_, and you must check that the buyer’s number is valid and active. The check is free: MyTax Illinois has a [Verify a Registered Business](https://tax.illinois.gov/questionsandanswers/answer.278.html) search by account ID, FEIN or license number. A proper certificate with a number that was valid on the day it was given protects you; as an IDOR letter ruling puts it, citing the courts, [“the retailer’s liability is at an end”](https://tax.illinois.gov/content/dam/soi/en/web/tax/research/legalinformation/letterrulings/st/documents/2010/st-10-0107.pdf). Collecting, dating and renewing certificates across hundreds of customers is where most audit adjustments begin; our [certificate management service](https://taxdo.com/services/tax-certificate-management) tracks them by customer and expiry.

### **6.3 Exempt buyers and manufacturers**

Charities, schools, churches and government bodies buy tax-free only with an active exemption identification number, the “E-number”, which IDOR issues without a fee and which is [not retroactive](https://tax.illinois.gov/research/publications/pio-37.html). You can confirm one on MyTax Illinois with the Verify a Sales Tax Exemption Number search. Manufacturers buying machinery and equipment used primarily in manufacturing or assembling goods for sale are exempt under [35 ILCS 120/2-5(14)](https://ilga.gov/legislation/ilcs/documents/003501200K2-5.htm); they give the seller [Form ST-587](https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/sales/documents/sales/st-587.pdf), which the seller keeps.

### **6.4 Returns, payments and penalties**

Retailers file [Form ST-1](https://tax.illinois.gov/forms/sales/salesandusetax/st-1-instructions.html) by the 20th of the month after the period. IDOR sets the frequency from your average monthly liability: monthly above $200, quarterly between $50 and $200, and annually below $50\. Under [35 ILCS 120/3](https://www.ilga.gov/legislation/ilcs/documents/003501200K3.htm), returns must be filed electronically once annual gross receipts average $20,000 or more, payments must be made by electronic funds transfer once annual liability reaches $200,000, and quarter-monthly payments apply once average monthly liability reaches $20,000.

The penalties are set out in [IDOR Publication 103](https://tax.illinois.gov/research/publications/pubs/penalties-and-interest-for-illinois-taxes.html). A late payment costs 2% if it is 1 to 30 days late and 10% after that, rising to 15% for amounts not paid until an audit begins. A late return costs the lesser of $250 or 2% of the tax, with a second penalty of up to $5,000 if the return is still missing 30 days after a notice. Fraud carries 50% of the deficiency. IDOR generally has [three years](https://tax.illinois.gov/content/dam/soi/en/web/tax/research/legalinformation/letterrulings/st/documents/2023/ST-23-0009-GIL.pdf) to assess; where no return was filed, or the return was fraudulent, there is no limit. Our [sales tax filing service](https://taxdo.com/services/sales-tax-filing) prepares the ST-1 alongside every other state’s return.

### **6.5 Use tax on your own purchases**

A registered retailer reports use tax on its business purchases on the ST-1\. Other businesses and individuals who owe more than $600, or $1,200 for married couples filing jointly, must file [Form ST-44](https://tax.illinois.gov/forms/sales/salesandusetax/st-44-instructions.html); smaller amounts may be reported on the individual income tax return. IDOR’s Voluntary Disclosure Program, described in section 3.4, sets no condition about where the business is located.

Vehicles have their own forms. A car bought from a private seller carries use tax reported on Form RUT-50, which [can now be filed and paid through MyTax Illinois](https://tax.illinois.gov/individuals/cars.html); a printed copy goes to the Secretary of State with the title application. A vehicle bought from a dealer outside Illinois uses Form RUT-25, due within 30 days of bringing it into the state.

### **6.6 Selling the business**

A buyer of an Illinois business must file [Form CBS-1](https://tax.illinois.gov/forms/reg/cbs-1-instructions.html) at least ten business days before the sale. If the notice is late, the buyer becomes personally liable for the seller’s unpaid tax up to the reasonable value of the assets acquired. IDOR can then order part of the purchase price withheld until the seller’s liabilities are settled.

## **07 ·** **Cross-track essentials: how the rate is built**

### **7.1 What makes up 6.25%**

IDOR’s allocation note, [PIO-114](https://tax.illinois.gov/content/dam/soi/en/web/tax/localgovernments/localtaxallocation/documents/pio-114.pdf), divides the 6.25% into a 5% state share, 1% returned to the municipality or county where the sale takes place, and 0.25% for the county. On top of that sit local taxes that IDOR collects on their behalf: [home rule municipal taxes](https://tax.illinois.gov/research/taxinformation/sales/homerule.html) in 0.25% steps with no cap, non-home-rule taxes of up to 1%, county taxes and transit taxes. Home rule and non-home-rule taxes do not apply to titled or registered property, qualifying food, drugs or medical appliances. Service businesses meet the same rates under different names: a serviceperson who transfers goods as part of a service owes Service Occupation Tax, and the customer the matching [Service Use Tax](https://tax.illinois.gov/research/publications/pubs/overview-of-service-occupation-tax.html).

### **7.2 Chicago and the transit tax**

The Northern Illinois Transit Authority, formerly the Regional Transportation Authority, [raised its tax by 0.25% on August 1, 2026](https://tax.illinois.gov/research/publications/bulletins/fy-2026-34.html) in Cook, DuPage, Kane, Lake, McHenry and Will counties. In Cook County the NITA rate is now 1.25% on general merchandise and 1.50% on groceries and drugs. That took Chicago from 10.25%, where it had stood since January 1, 2016, to 10.50%: the 6.25% state rate plus Cook County’s 1.75%, Chicago’s 1.25% and NITA’s 1.25%. Chicago is not the state’s highest rate; several Cook County municipalities are higher, and IDOR does not publish a statewide maximum.

### **7.3 Groceries after January 1, 2026**

The state [eliminated its 1% tax on groceries](https://tax.illinois.gov/research/publications/pio-115.html) on January 1, 2026\. Municipalities and counties may now impose a local grocery tax of exactly 1% by ordinance, effective January 1 or July 1\. The 1% state rate still applies to qualifying drugs and medical appliances, and transit taxes still apply to groceries. The [IDOR bulletin](https://tax.illinois.gov/research/publications/bulletins/fy-2026-03.html) keeps the old definition of groceries: it excludes alcoholic drinks, soft drinks, candy and food prepared for immediate consumption.

### **7.4 Origin or destination**

Which rate applies depends on who ships and from where. Remote retailers and marketplaces use the destination rate. An Illinois retailer filling an order from Illinois inventory uses the [origin rate](https://tax.illinois.gov/content/dam/soi/en/web/tax/research/taxinformation/sales/documents/pio-104.pdf) of the inventory location. Since January 1, 2025, an Illinois retailer shipping from a location outside Illinois uses the [destination rate](https://tax.illinois.gov/research/publications/bulletins/fy-2025-10.html). IDOR’s [MyTax Illinois Tax Rate Finder](https://mytax.illinois.gov/?Link=TaxRateFinder) returns both origin and destination rates by address. Our [US sales tax calculator](https://taxdo.com/resources/sales-tax-calculator) gives a quick estimate; for a return, use the address lookup.

### **7.5 The August sales tax holiday**

Illinois ran a [sales tax holiday](https://tax.illinois.gov/research/publications/bulletins/fy-2026-30.html) from August 7 to August 16, 2026, cutting the state rate from 6.25% to 1.25% on clothing and footwear under $125 an item and on school supplies. Local taxes still applied, and retailers report holiday sales on a separate schedule.

## **08 ·** **Recent changes and the road ahead**

### **January 1, 2020: marketplace facilitators**

Marketplace facilitators meeting the threshold became the retailer for the sales they facilitate.

### **January 1, 2021: destination sourcing for remote sellers**

The Leveling the Playing Field for Illinois Retail Act moved remote retailers and marketplaces from use tax to destination-based Retailers’ Occupation Tax, including local taxes.

### **January 1, 2025: out-of-state shipments and Chicago’s cloud tax**

Illinois retailers shipping from outside the state moved to destination rates, software leases under qualifying licenses became exempt, and Chicago raised its lease tax from 9% to 11%.

### **December 19, 2025: Chicago’s cloud tax reaches 15%**

The City Council raised the Personal Property Lease Transaction Tax, which covers SaaS used in Chicago, to 15% and barred any further increase before January 1, 2028.

### **January 1, 2026: one threshold, no state grocery tax**

The 200-transaction test was removed, a 15% rate began to apply to sales with undetermined locations, and the state’s 1% grocery tax ended.

### **August 1, 2026: transit tax increase**

The NITA tax rose by 0.25% in six counties, taking Chicago to 10.50%. IDOR bulletin [FY 2026-34](https://tax.illinois.gov/research/publications/bulletins/fy-2026-34.html) lists the new rates.

### **October 31, 2026: remote-retailer amnesty closes**

The last day to apply for penalty and interest relief on remote sales made between January 1, 2021, and June 30, 2026.

### **How TaxDo handles Illinois sales tax, from A to Z**

Illinois is one of 45 states with a statewide sales tax, and a seller that owes it here usually owes it elsewhere too. TaxDo combines a specialized sales tax team with an automated compliance platform, and covers the whole cycle in every state in four steps, in this order, because each one needs the one before it.

**Step 1 · Monitor exposure.** The platform tracks your sales into each state against that state’s own test, including Illinois’ rolling quarterly look-back, and flags a threshold before you cross it. A [nexus assessment](https://taxdo.com/services/nexus-assessment) sets the starting position.

**Step 2 · Resolve the past, then register.** Where a threshold was crossed in an earlier year, we [quantify the exposure](https://taxdo.com/services/tax-exposure-analysis) and negotiate a voluntary disclosure agreement with each state; in Illinois that means the remote-retailer amnesty before October 31, 2026, or Form BOA-2 after it. We then obtain the [registration](https://taxdo.com/services/sales-tax-registration).

**Step 3 · Automate collection and certificates.** Use the [platform](https://taxdo.com/services/all-in-one-sales-tax) on its own or [connect it](https://taxdo.com/integrations) to your accounting system, ERP, sales platform or e-commerce channel, and it calculates sales tax live at the delivery-address rate in every state. [Certificate management](https://taxdo.com/services/tax-certificate-management) is automated too, including CRT-61 renewals every three years.

**Step 4 · File, and defend.** We [prepare and file](https://taxdo.com/services/sales-tax-filing) the ST-1 on the frequency IDOR assigns, and every other state’s return alongside it. If a state opens an audit, our team [handles it on your behalf](https://taxdo.com/services/expert-support-for-state-matters), from records to resolution.

**One specialized team and one platform, from registration to audit, in every state you sell into.** For the national picture, see our [US sales tax guide for 2026](https://taxdo.com/resources/blog/post/us-sales-tax-guide-2026), the [California guide](https://taxdo.com/resources/countries/us/california) and the [state-by-state hub](https://taxdo.com/resources/countries/us).

## Frequently asked questions

### Is Illinois tax 10%?

Not as a state rate. The state rate is 6.25%. Local and transit taxes raise the combined rate, and in Chicago it has been 10.50% since August 1, 2026\. Some Cook County municipalities are higher. The rate that applies is the one for the delivery address, which the [Tax Rate Finder](https://mytax.illinois.gov/?Link=TaxRateFinder) returns.

### What is the 10.25 tax in Illinois?

It was Chicago's combined rate from January 1, 2016, to July 31, 2026: the 6.25% state rate, Cook County's 1.75%, Chicago's 1.25% and the 1% regional transit tax. When the transit tax rose by 0.25% on August 1, 2026, Chicago's rate became 10.50%.

### How much does it cost to get a sales tax permit in Illinois?

Nothing. IDOR charges no fee for a Certificate of Registration, and an application through MyTax Illinois takes about one to two business days. IDOR may ask some applicants for a bond.

### How long is an Illinois CRT-61 good for?

A blanket CRT-61 must be updated at least once every three years, and the buyer's Illinois account ID or resale number must be valid and active when you accept it. Check it with the Verify a Registered Business search on MyTax Illinois.

### Is an EIN the same as a resale certificate?

No. An EIN is a federal identification number. An Illinois resale certificate, usually Form CRT-61, must carry the buyer's Illinois retailer or reseller account ID. The Verify a Registered Business search does accept an FEIN, which helps you find the Illinois account behind it.

### Is SaaS taxable in the city of Chicago?

Yes, under a City tax. Illinois does not tax SaaS, but Chicago treats remote use of software within the City as a nonpossessory computer lease under its Personal Property Lease Transaction Tax. The rate is 15% of the subscription price under the current Municipal Code, up from 11% in 2025, and the Code bars any further increase before January 1, 2028.

### What is the sales tax on food in Cook County?

The state stopped taxing groceries on January 1, 2026\. IDOR's grocery rate file effective August 1, 2026, shows 1.50% for Chicago and Cook County, which is the transit tax alone. Prepared food, soft drinks and candy are taxed at the full general merchandise rate.

### Do I have to pay Illinois use tax?

Yes, if you bought taxable items without paying Illinois tax and use them in Illinois. Registered retailers report it on Form ST-1\. Others who owe more than $600, or $1,200 for joint filers, must file Form ST-44; smaller amounts can go on the individual income tax return.

## References

All retrieved on September 23, 2026\. 
1. [Illinois Department of Revenue](https://tax.illinois.gov/): administering authority; guidance, forms and MyTax Illinois
2. [IDOR bulletin FY 2026-12: changes to remote retailer rules](https://tax.illinois.gov/research/publications/bulletins/fy-2026-12.html): $100,000 test only and the 15% rate, from January 1, 2026
3. [IDOR bulletin FY 2026-28: 2026 Remote Retailer Tax Amnesty](https://tax.illinois.gov/research/publications/bulletins/fy-2026-28.html): August 1 to October 31, 2026
4. [IDOR bulletin FY 2026-34: NITA rate change](https://tax.illinois.gov/research/publications/bulletins/fy-2026-34.html): transit tax increase from August 1, 2026
5. [IDOR PIO-115: grocery tax changes](https://tax.illinois.gov/research/publications/pio-115.html): the state 1% grocery tax ends January 1, 2026
6. [IDOR: Leveling the Playing Field for Illinois Retail Act](https://tax.illinois.gov/research/taxinformation/sales/level-the-playing-field.html): destination sourcing for remote sellers
7. [IDOR PIO-125: remote retailers and marketplace facilitators](https://tax.illinois.gov/content/dam/soi/en/web/tax/research/taxinformation/sales/documents/pio-125.pdf): look-back, physical presence
8. [IDOR: Tax rates and the Tax Rate Finder](https://tax.illinois.gov/research/taxrates.html): origin and destination rates by location
9. [IDOR: CRT-61 instructions](https://tax.illinois.gov/forms/sales/crt-61-instructions.html): certificate of resale requirements
10. [IDOR: ST-1 instructions](https://tax.illinois.gov/forms/sales/salesandusetax/st-1-instructions.html): filing frequency and due dates
11. [IDOR Publication 103: penalties and interest](https://tax.illinois.gov/research/publications/pubs/penalties-and-interest-for-illinois-taxes.html): late filing, late payment and fraud
12. [IDOR: Voluntary Disclosure Program](https://tax.illinois.gov/programs/voluntarydislosure.html): look-back, penalties and eligibility
13. [IDOR PIO-101: Illinois tax matrix](https://tax.illinois.gov/content/dam/soi/en/web/tax/research/taxinformation/sales/documents/pio-101-illinois-tax-matrix.pdf): taxability of software and digital goods
14. [Municipal Code of Chicago, section 3-32-030](https://codelibrary.amlegal.com/codes/chicago/latest/chicago%5Fil/0-0-0-2606475): Personal Property Lease Transaction Tax at 15%

 _This guide summarizes the Illinois Retailers' Occupation Tax Act (35 ILCS 120), the Use Tax Act (35 ILCS 105) and the guidance of the Illinois Department of Revenue and the City of Chicago as they stood on September 23, 2026\. It is general information, not legal or tax advice. Rates, thresholds and program deadlines change; confirm the position for your facts with an Illinois-licensed CPA or tax attorney, or with IDOR, before acting._ 

 Prepared by the TaxDo Tax & Regulatory Advisory Team