Illinois: Sales Tax Handbook
Illinois Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
|6.25%||0.00% - 4.75%||1.394%||7.644%||11%|
2017 Illinois Sales Tax Handbook
Illinois Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
Illinois' Sales Tax By The Numbers:
Illinois has a higher-than-average sales tax, including when local sales taxes from Illinois's 906 local tax jurisdictions are taken into account.
Rankings by Average State + Local Sales Tax:
Ranked 14th highest by combined state + local sales tax
Ranked 39th highest by per capita revenue from state + local sales taxes ($749 per capita)
Rankings by State Sales Tax Only:
Ranked 6th highest by state sales tax rate
Ranked 36th highest by per capita revenue from the statewide sales tax ($634 per capita)
Printable PDF Illinois Sales Tax Datasheet
Illinois has a statewide sales tax rate of 6.25%, which has been in place since 1933.
Municipal governments in Illinois are also allowed to collect a local-option sales tax that ranges from 0.00% to 4.75% across the state, with an average local tax of 1.394% (for a total of 7.644% when combined with the state sales tax). The maximum local tax rate allowed by Illinois law is 4.75%. You can lookup Illinois city and county sales tax rates here.
This page provides an overview of the sales tax rates and laws in Illinois. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Illinois Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in Illinois?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Illinois taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the Illinois sales tax see Illinois sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Illinois? Taxation of vehicle purchases in particular are discussed in the page about Illinois' sales tax on cars.
Are services subject to sales tax in Illinois?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Illinois, services are generally not taxable.
About the Illinois Sales Tax
The state of Illinois has a relatively complex sales tax system, and utilizes a flat state tax rate which is broken down into four categories - the Retailers' Occupation Tax, Use Tax, Service Occupation Tax and the Service Use Tax. All of these taxes are administered by the state's Department of Revenue, and apply to the sale of goods and services respectively.
The state's 6.25% sales tax is divided among state and local governments, with 5% going to the state, 1% to the city and 0.25% to the county in which the tax was collected.
In addition to the state tax rate, in many areas of Illinois there are county taxes and city local-option taxes, which will vary significantly depending on which jurisdiction you are in. Chicago for example, has a 9.25% sales tax including local-option taxes, which is one of the highest sales taxes of any city in the United States.
Is the Illinois Sales Tax Destination-Based or Origin-Based?
Illinois is a origin-based sales tax state, which means sales tax rates are determined by the location of the vendor, not by the location of the buyer. The origin-based method of determining sales tax is less complicated for vendors than destination-based sales tax, because all in-state buyers are charged the same sales tax rate regardless of their location.
Is Illinois a Streamlined Sales Tax State?
Illinois is not a member of the Streamlined Sales and Use Tax Agreement. The SSUTA is an agreement adopted by about half of states that ensures that their sales tax laws are simplified to lower the costs associated with compliance.
Contact the Illinois Revenue Department
The Illinois Sales Tax is administered by the Illinois Revenue Department. You can learn more by visiting the sales tax information website at tax.illinois.gov.
Phone numbers for the Sales Tax division of the Revenue Department are as follows:
- Local Phone: (217) 782-3336
- Toll-Free Phone: (800) 732-8866
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your Illinois sales taxes, we recommend the following books:
Simplify Illinois sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
Illinois Sales Tax Rates by Zip Code:
Need an updated list of Illinois sales tax rates for your business? Download our Illinois sales tax database!