Illinois Sales Tax on Optional Maintenance Contracts Illinois: Sales Tax Handbook

Illinois:

Are Optional Maintenance Contracts 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 optional maintenance contracts in Illinois, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in Illinois.


General Optional Maintenance Contracts
EXEMPT
In the state of Illinois, the charge must be separately stated.

Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts
TAXABLE
Sales of parts purchased for use in performing service under optional maintenance contracts are subject to sales tax in Illinois.



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