Need an updated list of Illinois sales tax rates for your business? South Dakota v. Wayfair, Inc. Illinois's sales tax rates for commonly exempted items are as follows: Unlike a Value Added Tax (VAT), the Illinois sales tax only applies to end consumers of the product. Illinois does not exempt any types of purchase from the state sales tax. The 2018 United States Supreme Court decision in South Dakota v. Wayfair, Inc. has impacted many state nexus laws and sales tax collection requirements. Sellers owe the occupation tax to the department; they reimburse themselves for this liability by collecting use tax from the buyers. Chicago's base sales tax is 9.5%, the highest of any major U.S. city. The state of Illinois raises revenue by imposing a sales tax on products and services purchased in Illinois. 6.25% is the smallest possible tax rate (Clare, Illinois) 2. eBay has been collecting (and I'm assuming remitting to Illinois) sales tax on the seller's behalf for these sales. I would hate for people to get doubled on their sales tax. Combined with the state sales tax, the highest sales tax rate in Illinois is 11% in the city of River Grove. The Illinois state sales tax rate is 6.25%, and the average IL sales tax after local surtaxes is 8.19%. File your IL-1040, make a payment, look up your refund status, and more. Illinois does not treat candy or soda as groceries, which means they are not subject to reduced grocery sales tax rates. In addition to state and county tax, the City of Chicago has a 1.25% sales tax. Prepared Food is subject to a higher state sales tax then other items. downloaded from the Illinois Department of Revenue here, Counties and cities can charge an additional. Individuals. Our partner TaxJar can manage your sales tax calculations, returns and filing for you so you don't need to worry about mistakes or deadlines. Since Illinois is an origin-based state, you would charge all of your buyers in Illinois that 8.75 % rate. To lookup the sales tax due on any purchase, use our Illinois sales tax calculator. Illinois … Companies or individuals who wish to make a qualifying purchase tax-free must have a Illinois state sales tax exemption certificate, which can be obtained from the Illinois Department of Revenue . The Illinois sales tax rate is currently %. You will pay Illinois sales and use tax by: For Those in State – Illinois is an origin-based state so you will collect sales tax based on where you are located in the state. The IL sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Just enter the five-digit zip code of the location in which the transaction takes place, and we will instantly calculate sales tax due to Illinois, local counties, cities, and special taxation districts. Certain items like food and drugs are subject to a special state sales tax of 1%, plus any local sales taxes. There also may be a documentary fee of 166 dollars at some dealerships. If you're an online business, you can connect TaxJar directly to your shopping cart, and instantly calculate sales taxes in every state. SalesTaxHandbook is a free public resource site, and is not affiliated with the United States government or any Government agency, Sales Tax Handbooks By State | File Your IL-1040 on MyTax Illinois; Get Your IL-Pin; Look up a 1099-G; File, Pay, and Manage Your Account; Where's My Refund? The County sales tax rate is %. You can also download an Illinois sales tax rate database. The tax rate there is the total of the 6.25 % Illinois state sales tax rate, the .75% Will County Rate and 1.75 % Joliet rate, for a total of 8.75 % sales tax. Cities or towns marked with an have a local city-level sales tax, potentially in addition to additional local government sales taxes. The Illinois state sales tax of 6.25% is applicable statewide. How to file taxes in Illinois. Illinois has state sales tax of 6.25%, and allows local governments to collect a local option … Print Exemption Certificates. Sales tax is a tax paid to a governing body (state or local) on the sale of certain goods and services. Simplify Illinois sales tax compliance! If your annual tax liability is less than $20,000, you also have the option of mailing your payment to the Illinois Department of Revenue. Illinois first adopted a general state sales tax in 1933, and since that time, the base sales tax rate has risen to 6.25 percent. If you need access to a database of all Illinois local sales tax rates, visit the sales tax data page. Other, local-level tax rates in the state of Illinois include home rule, non-home rule, water commission, mass transit, park district, business district, county public safety, public facilities or transportation, and county school facility tax. Illinois sales tax returns are due on the 20th day of the month following the reporting period. Illinois state law requires businesses to pay sales tax using electronic funds transfer (EFT) if their annual tax liability is $20,000 or more. Individuals. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Illinois Sales Tax Exemption Form to buy these goods tax-free. These changes redefine the "selling price" subject to Sales and Use Taxes for sales and purchases of motor vehicles when a customer trades in a first division motor vehicle. Prior to 2020, Illinois did not collect a sales tax on a car’s trade-in value unless the vehicle was worth more than $20,000. Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Because of the varied nature of county, municipality, and state rates, this makes the process much easier. Your are expected to voluntarily list your liable purchases on a Illinois Use Tax Return, which should be attached with payment to your Illinois Income Tax Return. Illinois collects a 7.25% state sales tax rate on the purchase of all vehicles. Click on any city name for the applicable local sales tax rates. If you are a Illinois business owner, you can learn more about how to collect and file your Illinois sales tax return at the 2021 Illinois Sales Tax Handbook . Accessed Jan. 12, 2021. Municipal governments in Illinois are also allowed to collect a local-option sales tax that ranges from 0% to 4.75% across the state, with an average local tax of 1.566% (for a total of 7.816% when combined with the state sales tax). Do you have a comment or correction concerning this page? Depending on local municipalities, the total tax rate can be as high as 11%. "Illinois Tax Increase on Cigarettes and E-Cigarettes Scheduled to Go into Effect July 1." Click here for a larger sales tax map, or here for a sales tax table. The County sales tax rate is %. Download our Illinois sales tax database! Part of this increase can be traced to the city of Evanston, which raised its city tax from 1 percent to 1.25 percent,and to Marion City, which raised its sales tax from 8.75 percent to 9.5 percent in an attempt to p… The 2018 United States Supreme Court decision in South Dakota v. Wayfair, Inc. has impacted many state nexus laws and sales tax collection requirements. Filing Illinois Sales Tax Returns. The Illinois sales tax rate is currently %. When tax time rolls around in Illinois, whether it’s … “Sales tax” is the combination of all state, local, mass transit, home rule occ… So the same car deal will cost her an extra $874 in sales taxes if she waits until Jan. 1. The Service Occupation Tax and the Service Use Tax apply to any tangible property exchanged in a service transaction (such as paint used by a painter on his client's house), but not directly on the service itself. The department regulates the manufacture, distribution, and sale of alcoholic beverages. Additional Information for Individual Taxpayers Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Illinois sales tax code) can be downloaded from the Illinois Department of Revenue here . Click here to get more information. If the due date falls on a weekend or holiday, then your sales tax filing is generally due the next business day. The labor is not taxable, but the product itself is a taxable good. We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. "What Is the Sales Tax Rate in Illinois?" The Chicago, Illinois sales tax is 10.00%, consisting of 6.25% Illinois state sales tax and 3.75% Chicago local sales taxes.The local sales tax consists of a 1.75% county sales tax, a 1.25% city sales tax and a 1.00% special district sales tax (used to fund transportation districts, local attractions, etc).. We value your feedback! Counties and cities can charge an additional local sales tax of up to 3.5%, for a maximum possible combined sales tax of 9.75%; Illinois has 1018 special sales tax jurisdictions with local sales taxes in addition to the state sales tax; Illinois has a lower state sales tax than 80.8% of states There is also between a 0.25% and 0.75% when it comes to county tax. Illinois has state sales tax of 6.25%, The Illinois (IL) state sales tax rate is currently 6.25%. As of 2011, Illinois has become one of the only states to require that sales tax be paid for purchases made online, even from retailers with no physical presence in Illinois. Your browser appears to have cookies disabled. Vehicle sales tax (for vehicles sold by a dealer) Usually 6.25% but can vary by location : Use the Illinois Tax Rate Finder to find your tax : Vehicle use tax (for vehicles purchased from another individual or private party) Usually 6.25% but can vary by location : Use the Illinois Tax Rate Finder to find your tax : Title Transfer Only Fee : $25 The village believes these sales tax rates to be current. Illinois Revenue. The Chicago sales tax rate is %. There are a total of 897 local tax jurisdictions across the state, collecting an average local tax of 1.566%. Some of the Illinois tax type are: Consumers use, rental tax, sales tax, sellers use, lodgings tax and more. Cookies are required to use this site. Illinois does not allow local jurisdictions like cities or counties to collect a local sales tax. In the map of Illinois above, the 102 counties in Illinois are colorized based on the maximum sales tax rate that occurs within that county. Non-prescription Drugs, prescription drugs, prepared food and groceries are subject to special sales tax rates under Illinois law. The Buffalo Grove sales tax rate is %. Other items including gasoline, alcohol, and cigarettes are subject to various Illinois excise taxes in addition to the sales tax. In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. Retailers should confirm state sales tax rates with the Illinois Department of Revenue at 800-732-8866, Cook County Department of Revenue at 312-603-6870 and DuPage Tax Revenue Department at 630-407-5540. Generally speaking, services in Illinois are not taxable. 1. and allows local governments to collect a local option sales tax of up to 4.75%. Joe Rizza Ford wants to help Illinois residents prepare for this situation and provide helpful tips on how to act before the changes go into effect on January 1, 2020. Looks like starting in 2020, Etsy and other selling platforms will be collecting Illinois Sales Tax. Businesses of all sizes, including sole proprietors up to large corporations, need to register for sales-tax purposes and remit tax on Illinois sales. Sales taxes in Illinois are calculated before rebates are applied, so the buyer who pays $9,500 after a $2,500 rebate will still pay sales tax on the full $12,000. On making an exempt purchase, Exemption Certificate holders may submit a completed Illinois Sales Tax Exemption Form to the vendor instead of paying sales tax. Note: if the service provided results in a product, the product is subject to sales tax. The Civic Federation.org. © 2021 SalesTaxHandbook. Illinois has 1,018 cities, counties, and special districts that collect a local sales tax in addition to the Illinois state sales tax.Click any locality for a full breakdown of local property taxes, or visit our Illinois sales tax calculator to lookup local rates by zip code. Newspapers, magazines, and any legal tender (like gold) are completely exempt from the sales tax. The maximum local tax rate allowed by Illinois law is 4.75%. Illinois requires sellers, not eBay, to collect and remit sales tax for sales in Illinois . Accessed Jan. 12, 2021. Effective January 1, 2021, remote retailers, as defined in Section 1 of the Retailers' … Illinois Revenue. Illinois has one of the most complicated sales tax codes in the country. "Motor Fuel Tax Rates and Fees." So sales taxes will be applied to $25,000 of the transaction, which will cost her $2,185. Automate your business's sales taxes! Whenever you make a purchase at a licensed Illinois retailer, your sales tax will be automatically calculated and added to your bill. The Retailers' Occupation Tax and Use Tax are charged to the business and the customer respectively, and make up the main "sales tax" in Illinois. Average local rates rose the most in Illinois, changing the state’s combined ranking from 7th highest to 6th highest. In addition to (or instead of) traditional sales taxes, gasoline and other Fuel products are subject to excise taxes on both the Illinois and Federal levels. Sales Tax Calculator | You can view the sales tax rates for various cities in Illinois here. The Illinois state sales tax rate is 6.25%, and the average IL sales tax after local surtaxes is 8.19%.. Sales tax is a combination of “occupation” taxes that are imposed on sellers’ receipts and “use” taxes that are imposed on amounts paid by purchasers. The term “sales tax” actually refers to several tax acts. 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