Illinois Sales Tax Guide for E-Commerce Retailers
Fast Facts About Illinois Sales Tax
Illinois state sales tax rate
Does Illinois allow for local sales tax?
Illinois taxing authority
Department of Revenue
Illinois sales tax questions phone number
Am I required to collect sales tax in Illinois?
Businesses that have an employee, location (including inventory in a warehouse), or who do other business in the state are required to register for a sales tax permit and collect sales tax from buyers in Illinois.
E-commerce businesses with economic nexus in Illinois are also required to register and collect.
You have economic nexus in Illinois if you made more than $100,000 or 200 transactions in Illinois in the preceding 12 months.
How to Collect Illinois Sales Tax
Illinois is an origin-based sales tax state. This means that retailers are required to collect sales tax differently depending on whether the sale originates in Illinois (i.e. you have a store, warehouse, office, etc. there) or it originates outside of Illinois (i.e. you have nexus in Illinois, but your shipment originates outside the state.)
Learn more about origin and destination-based sales tax sourcing here.
How to Collect Sales Tax in Intrastate Sales in Illinois
Since Illinois is an origin-based sales tax state, this means intrastate sales (sales from a seller to a buyer both in Illinois) are considered to take place at the seller’s location. This might be your home, warehouse, store, distribution store or other location. If you sell to a buyer in Illinois, you simply need to collect sales tax at the sales tax rate at your location. That means, if you are based or make sales from Illinois, you can collect the same sales tax rate from all Illinois buyers as long as the shipment originates in the state.
How to Collect Sales Tax in Interstate Sales in Illinois
If you are located outside of Illinois or the sale originates outside of Illinois but your buyer is in Illinois, then simply charge the full Illinois state + local (city, county, etc.) sales tax rate to your buyer.
Learn more about how to collect the right amount of state plus local sales tax here.
How to File Sales Tax in Illinois
When your Illinois sales tax due date rolls around, you can either file yourself online or let a partner like HOST take this onerous task off your plate.
Learn more about handing off your sales tax filings to HOST here!