Welcome to 1StopVAT’s New Jersey sales tax. Thank you for your interest in 1StopVAT’s Illinois sales and use tax guide. By reading the article below, you will learn what is the current sales tax in Illinois and what are the steps you must take to become a payer of the sales tax in Illinois (IL). For additional information and answers to specific questions, please contact the 1StopVAT team for an individual consultation.
A sales tax is a consumption tax that is charged on goods or services. Sales tax Illinois is supervised and administered by Illinois Revenue and can be managed via MyTax Illinois. Illinois Revenue authority defines sales tax as a combination of ‘occupation’ taxes, including state, mass transit, facilities, and other taxes. Sales tax for Illinois must be collected at the point of sale from the purchaser. The tax burden typically falls on the final consumer.
Just like in other states, to become a registered sales taxpayer in the state, a company has to establish a nexus in the state. The total sales tax rate Illinois -based businesses must collect differ depending on the local taxes. Like the sales tax, the use tax, consisting of general and local rates, must be paid by the clients of Illinois sales tax (IL) -exempt companies selling taxable goods or services.
To become a registered sales taxpayer, you will have to fulfill several official criteria for starting to charge and collect the required sales tax rate in Illinois. These are the criteria:
The ways that you can establish a sales tax nexus in Illinois are the following:
Before learning how much is the sales tax in Illinois for your company, we recommend you check if your goods or services are taxable.
In Illinois, all goods are taxable. The general Illinois sales tax rate is applied to most tangible property. At the same time, some of the essential items such as groceries, prescription or OTC drugs are subject to a reduced Illinois state sales tax rate.
The tax authorities in Illinois tax sales of several activities, but most services in the state are sales tax-exempt. However, the list of taxable services is reviewed yearly.
The most convenient way to become a sales tax-paying company in Illinois is to fill out the form for Illinois sales tax online. The Illinois Revenue oversees the registrations, which are done via the MyTax Illinois portal. There is no fee for the registration. After submitting your personal and company details, a taxpayer certificate is issued, and your company becomes eligible to collect the tax. Using the MyTax Illinois website, you can also learn updated information on what’s the sales tax in Illinois and how much sales tax in Illinois your company has to pay.
The sales tax rates Illinois -selling companies have to charge vary based on the type of item or service and the sale location. The base sales tax rate in Illinois is 6.25%. It is often combined with a local rate ranging from 0 to 4.75%. Therefore, the entire Illinois sales rate range is 6.25% to 11%. Keep in mind that some items such as prescription medicine or groceries are assigned a reduced tax rate of 1%. To find the specific sales tax rate of your goods or services, use our Sales Tax Calculator and if you have more questions about sales and use tax Illinois, contact our team.
Illinois Revenue assigns several frequencies to file your taxes: monthly, quarterly, or annual. It is important to stick to the deadlines based on your designated frequency, as late filing can result in penalties.