Illinois Sales Tax on Manufacturing and Machinery Illinois: Sales Tax Handbook

Illinois:

Are Manufacturing and Machinery subject to sales tax?

While Illinois' sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of manufacturing and machinery in Illinois, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Illinois.


Machinery
EXEMPT
Sales of machinery are exempt from the sales tax in Illinois.

Raw Materials
EXEMPT
In the state of Illinois, any materials which have been consumed, although they may not be physically incorporated, in the process of creating manufactured property are considered to be taxable.

Utilities & Fuel
TAXABLE
Sales of utilities & fuel are subject to sales tax in Illinois.



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