Illinois: Sales Tax Handbook

Illinois Sales Tax Rate

2024 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
  • Getting A Sales Tax Permit
  • Filing Your Sales Tax Return
  • Sales Tax Return Filing Schedule
  • What Defines Sales Tax Nexus?
  • Appealing Sales Tax Audits
• Taxable vs. Non-Taxable Purchases
  • What Sales Are Taxable?
  • Sales Tax Exemptions
  • Sales Tax Basis Components
  • Alcohol Excise Taxes
  • Tobacco Excise Taxes
  • Gasoline & Fuel Excise Taxes
  • Marijuana Taxes
• Sales Tax on Cars & Vehicles
• More Information
  • State Sales Tax Map
  • State Sales Tax Rate Table
  • Recent Tax Rate Changes
  • List of Sales Tax Holidays
  • Contact the Department of Revenue

These rankings show how the Illinois sales tax compares to the other 49 states + DC. The state with the highest sales tax is ranked 1st, and states with the same sales tax have a tie rank.

Illinois' Sales Tax By The Numbers:

Illinois has a higher-than-average sales tax, including when local sales taxes from Illinois's 495 local tax jurisdictions are taken into account.

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Rankings by Average State + Local Sales Tax:

  Ranked 11th highest by combined state + local sales tax

  Ranked 39th highest by per capita revenue from state + local sales taxes ($749 per capita)

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Rankings by State Sales Tax Only:

  Ranked 7th highest by state sales tax rate

  Ranked 36th highest by per capita revenue from the statewide sales tax ($634 per capita)

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IL City & County Taxes

IL Sales Tax Calculator

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Printable PDF Illinois Sales Tax Datasheet

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:

Clothing

  6.25%

Groceries

  1%

Prepared Food

  8%

Prescription Drugs

  1%

OTC Drugs

  1%

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:

Small Business Taxes For Dummies

This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.

Buy on Amazon

A Guide to Sales and Use Tax

This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.

Buy on Amazon