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Illinois Sales and Use Tax Through the Business Year
Illinois sales tax is really two taxes. One falls on the seller: under 35 ILCS 120, the Retailers' Occupation Tax Act reaches a seller's receipts from retail sales of goods. The other falls on the buyer: the Use Tax Act (35 ILCS 105) covers the buyer's use of goods in Illinois. The Department of Revenue runs both, and both reach sales, leases and equipment purchases. Our checklist is the Tollbooth Sales-Tax Sweep, below. The seller-side statute is on ilga.gov.
The short version
- For 2026 the State rate is 6.25 percent on general merchandise, while qualifying drugs and medical appliances are taxed at 1 percent. Local and transit taxes add on top.
- The State's 1 percent grocery tax ended January 1, 2026.
- Coverage for a remote seller begins when Illinois receipts reach $100,000. The 200-transaction test ended on December 31, 2025, though the Department's web page still lists it.
Who it covers
| Group | Covered? | Note |
|---|---|---|
| Illinois retailer, including a lessor | Yes | Leasing most goods counts as retail since January 1, 2025 |
| Seller based out of state, with an office, warehouse or agent in Illinois | Yes | Treated like an Illinois retailer |
| Remote seller with no presence | At $100,000 of receipts | Destination rate, tested at each quarter-end |
The numbers
| Item | Amount | Year |
|---|---|---|
| State rate: general merchandise; qualifying drugs | 6.25%; 1% | 2026 |
| Penalty on late payment | 2% for days 1 to 30 late; 10% from day 31; 15% after an audit starts | Current |
| Interest | 7% simple | Through Dec. 31, 2026 |
Source: rate file of the Illinois Department of Revenue
As of October 29, 2026, the Remote Retailer Tax Amnesty runs through October 31, 2026. Eligible past remote sales get related penalties and interest waived for full payment or a repayment plan started by then and completed.
The Tollbooth Sales-Tax Sweep
- Register (Form REG-1) before selling or leasing goods.
- Look up the combined rate by address; rates move January 1, July 1 and sometimes between.
- Hold a resale certificate and a checked account ID for each tax-free resale.
- E-file Form ST-1 once yearly gross receipts average $20,000 or more.
- List equipment bought without Illinois tax and self-assess use tax.
What it means for year-round planners
- Sales tax collected is trust-fund money; personal liability can fall on the person responsible for remitting it if that person willfully fails to do so; see small business basics.
- Equipment bought without Illinois tax creates use tax; add it to year-round planning.
- ST-1 dates fit the compliance calendar.
Mistakes people make
- Taking a bare "it is for resale" with no certificate or account ID check.
- Treating CRT-61 as an exemption certificate; it documents resale only.
- Using an old combined rate after a rate change.
A Notice of Tax Liability, Tax Tribunal petition or criminal inquiry belongs with an attorney.
Common questions
Does Illinois tax services?
Generally no, but goods transferred with a service can be taxed.
Is the grocery tax gone?
The State's 1 percent ended January 1, 2026. Cities and counties may charge exactly 1 percent by ordinance, and transit grocery taxes continue.
Does CRT-61 work as an exemption certificate?
No. The form is a Certificate of Resale. Buyers who are exempt use an exemption number issued by the Department.