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Illinois Sales Tax Guide for Businesses

Fast Facts


Return Location:
Online 

Has Local Filings: Yes

Sales Tax Rate: 6.25% state rate plus local rates. Click here for more information about local rates.

Contact Information: Visit their website or call 217 524-4772 for their business hotline.

How is Tax Calculated?: Illinois sales taxes are based on the origin of the sale (rate is based on where the seller is located). Read more here.

Are Services Taxable?: With the exception of janitorial and transportation service, sales of services are exempt from Illinois sales tax. Read more here.

Nexus in Illinois

What Creates Nexus: A business is considered to be “engaging in business in Illinois” (and therefore owe sales tax) if they have:

eCommerce Nexus?: As of this posting, Illinois does have special laws that create nexus for online sellers, specifically “click-through” nexus. Read more about click-through nexus laws in Illinois here.

How to File a Sales Tax Return in Illinois

Online: Illinois recommends that you file a sales tax return using the MyTax Illinois online service.

We will be adding an instructional video here at a later date. 

How to Get a Sales Tax Permit in Illinois

View our full guide:  Coming soon

Where to Register: MyTax Illinois

Registration Fee: There is no fee to register for a sales tax permit in Illinois

Renewal Required?: You do not have to renew your sales tax permit in Illinois.

Illinois Sales Tax Filing Frequency

Illinois has taxpayers file on a monthly, quarterly, or annual basis depending on their average monthly tax liability:

Monthly: For annual tax collections above $200

Quarterly: For annual tax collections between $50 to $200

Annually: For annual tax collections between $0 to $50

Discounts: There is an early filing discount of 1.75% in Illinois, with an annual minimum of $5. Read here for more.

Late Fees: Filing a late return in Illinois results in a penalty of the lesser of $250 or 2% of the tax required to be shown due on the return and reduced by timely payments or credits. Read more about Illinois sales tax late fees and penalties here.

Illinois Sales Tax Return Due Dates

Illinois’ sales tax returns are typically due on the 20th of the following month. Read more on Illinois’ ST-1 form instructions.

Monthly Filing Frequency

January Collection — February 20th

February Collections — March 20th

March Collections — April 20th

April Collections — May 21st

May Collections — June 20th

June Collections — July 20th

July Collections — August 20th

August Collections — September 20th

September Collections — October 22nd

October Collections — November 20th

November Collections — December 20th

December Collections — January 22nd (following year)

Quarterly Filing Frequency

Q1: Jan - March Collections — April 20th

Q2: April - June Collections — July 20th

Q3: July - September Collections — October 22nd

Q4: October - December Collections — January 22nd (following year)

Annual Filing Frequency

January - December Collections — January 22nd (following year)

Illinois Sales Tax Holidays


Illinois does not offer any sales tax holidays in 2018.

Special Notes for Amazon Sellers

Amazon does have a warehouse in Illinois. Be sure to check to see if your FBA inventory is being stored in Illinois, as it will create a sales tax obligation.

We can help you determine where Amazon is storing your inventory. Contact us to learn more.

Receive a complementary nexus study from our team.

You'll learn where you owe sales tax and what your historical liabilities are.

Receive a free nexus study to learn where you owe sales tax.

Free Resource: The ULTIMATE Sales Tax Checklist

This guide breaks down the process of getting compliant in 5 simple steps.

 

This is a great resource if you're starting to figure things out on your own.

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