Illinois Sales Tax Guide for Businesses
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:
- An office, warehouse or place of business in Illinois
- An employee, contractor, salesperson, agent or representative in Illinois
- A 3rd party affiliate in Illinois
- Read more about nexus conditions in Illinois here.
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.