Illinois Sales Tax Guide

A step-by-step guide to understanding Illinois sales tax rules.


If you're planning to sell taxable goods in the Land of Lincoln and you've established nexus there, it's time for you to get up to speed on modern sales tax policy. Our guide to Illinois sales tax compliance will quickly take you from novice to pro by helping you establish a foundation of sales and use tax knowledge. From registration to filing, we'll cover what you need to know to get right with the Illinois DOR.

I would rather automate my Illinois sales tax filing

Table of Contents

An Overview of Illinois Sales Tax

Understanding where, when, and how to collect Illinois sales tax is no easy task. Whether you're collecting tax dollars at the point-of-sale or collecting Illinois internet sales tax, our guide will break down the sales tax compliance process into focused, easy to understand chapters.

Illinois Sales Tax Nexus

Understanding whether you need to collect, file, and remit Illinois sales tax depends on a concept known as nexus. In this chapter, we'll take a look at situations that may trigger in Illinois such as storing inventory in the state, hiring state residents, and click-through nexus.

Registering to Collect Illinois Sales Tax

You'll want to get started establishing Illinois sales tax compliance by understanding how to get your business registered for the necessary sales tax permit. We'll walk you through the process and help you understand when is the best time to get your business registered in Illinois.

Collecting Sales Tax in Illinois

After you've registered your business with the Illinois Department of Revenue, you're ready to begin collecting sales tax. We'll review topics such as Illinois sales tax exemptions, sales tax holidays, and determining state and local sales tax rates.

Filing Illinois Sales Tax Returns

Now that you're business is registered with the Illinois Department of Revenue and collecting sales tax, you'll need to file tax returns in an ongoing basis. We'll help you gain a deep understand of the process of filing sales tax returns. Topic covered include filing frequencies, filing on behalf of a client, and what happens if you file late.

Illinois Sales Tax Filing Due Dates

Every business that registers to collect Illinois sales tax will be assigned a filing frequency. In this chapter, we'll take a look at the filing frequencies and associated due dates supported by the Illinois Department of Revenue.

Late Filing Penalties, Fines & Interest

We know, mistakes happen and, from time to time, sales tax filing deadlines are missed. In this chapter, we'll take a look at what penalties you may be required to pay should you miss your assigned Illinois sales tax filing date. We'll also consider interest charges for late sales tax payments.

Sales Tax on Illinois Shipping & Handling

The rise of the internet economy has made it possible for buyers around the world to order your products. Did you know shipping and handling may be taxable? In this chapter we'll cover sales tax on shipping and handling in Illinois. You'll want to pay attention here because there are some important details pertaining to invoicing you'll want to understand.