Effective June 28, 2024
PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 2 of 33
**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.
Illinois Sales & Use Tax Matrix
In Illinois, occupation and use taxes are collectively referred to as “sales tax.” The Retailers’ Occupation Tax Act imposes a tax upon persons engaged in this State in the
business of selling tangible personal property at retail to purchasers for use or consumption. 35 ILCS 120/1, et seq.; 86 Ill. Adm. Code 130/101 et seq. T
he Use Tax Act
imposes use tax on the privilege of using, in this State, any kind of tangible personal property purchased anywhere at retail from a retailer. 35 ILCS 105/1, et seq.; 86 Ill.
Adm. Code 150.101 et seq. In addition to the state Retailers’ Occupation tax, local retailers’ occupation taxes are authorized by statute and administered by the Illinois
Department of Revenue (“IDOR”). There are, however, no local use taxes on general merchandise administered by IDOR.
Retailer Types, Tax Collection Obligations, and Key Dates
A “retailer maintaining a place of business in this State,” that is located outside of this State and that has nexus, is required to register with IDOR to collect and remit use
tax on purchases made by Illinois purchasers.
• Until October 1, 2018, an out of state retailer established nexus through a physical presence in Illinois (see 35 ILCS 105/2).
• Effective October 1, 2018, and through December 31, 2020, out of state retailers without a physical presence meeting certain economic or transactional
thresholds fell within the definition of a “retailer maintaining a place of business in this state” and were required to register with IDOR to collect and remit Illinois
Use Tax on sales to Illinois purchasers (see Public Act 100-0587 and 86 Ill. Adm. Code 150.803).
• Effective January 1, 2020, through December 31, 2020, a marketplace facilitator meeting certain economic or transactional thresholds fell within the definition
of a “retailer maintaining a place of business in the state” and was required to register as a marketplace facilitator with IDOR to collect and remit Illinois Use Tax
on sales to Illinois purchasers made through the marketplace on behalf of marketplace sellers and on its own sales (see Public Acts 101-0009 and 101-0604
and 86 Ill. Adm. Code 150.804). If a marketplace facilitator, marketplace seller, or out of state retailer makes sales to Illinois purchasers from inventory in Illinois
or otherwise engages in the occupation of selling tangible personal property in Illinois, then they will be required to remit Illinois Retailers’ Occupation Tax (ROT)
and applicable local retailers’ occupation taxes on those sales.
• Effective January 1, 2021, Public Acts 101-31 and 101-604 (Leveling the Playing Field for Illinois Retail Act) implemented a series of structural changes to the
Illinois sales tax laws that changed the liabilities of many types of retailers, as follows:
o R
emote retailers (i.e., retailers with no physical presence in Illinois) who meet certain economic or transactional thresholds incur state and local
retailers’ occupation tax using destination sourcing for sales made to Illinois purchasers. A marketplace seller that makes sales over a marketplace that
meets either of the tax remittance thresholds and makes sales outside of that marketplace may also be considered a remote retailer.
o Marketplace facilitators incur state and local retailers’ occupation tax using destination sourcing for sales made over the marketplace on behalf of
marketplace sellers to Illinois purchasers.
o Marketplace facilitators incur state and local retailers’ occupation tax using origin sourcing for their own sales that are either fulfilled from inventory
located in Illinois or for which selling activities otherwise occur in Illinois (see 86 Ill. Adm. Code 270.115
) and they incur state and local retailers'
occupation tax using destination sourcing for all of its other sales.
o O
ut-of-state sellers with a physical presence in Illinois incur a use tax collection obligation for sales they make outside Illinois and ship or deliver to
Illinois purchasers. However, these sellers incur state and local retailers’ occupation taxes using origin sourcing for sales for which their selling
activities occur in Illinois (see 86 Ill. Adm. Code 270.115
). If such sellers also make sales over a marketplace, they are considered marketplace sellers
and the marketplace facilitator will incur state and local retailers’ occupation tax liability based on destination sourcing for these sales.
o I
llinois retailers, including brick and mortar retailers, incur no state or local retailers’ occupation taxes for sales made over a marketplace when the
marketplace facilitator assumes the state and local retailers’ occupation tax liability based on destination sourcing.
o Illinois retailers, including brick and mortar retailers, incur state and local retailers’ occupation taxes based on origin sourcing for sales made in Illinois.