Illinois sales tax for online sellers: nexus, permit and filing

Illinois simplified its threshold in 2026 by dropping the transaction test, but its tax on remote sellers still includes local rates by destination. This guide covers the threshold, registration and returns.

By Awais Jameel, Chartered Accountant. Reviewed by Muhammad Bilal, Chartered Accountant. Checked against official sources on . 2 minute read.

Short answer

Illinois sales tax nexus for online sellers comes from a physical presence in Illinois, or from $100,000 or more of gross receipts from sales into Illinois in the preceding 12 months. Since January 1, 2026, there is no 200-transaction test. Once you have nexus, register through MyTax Illinois and collect the 6.25% state rate plus local taxes based on the delivery address.

At a glance

State rate
6.25%, plus local taxes
Economic nexus
$100,000 of gross receipts
Transaction test
Removed January 1, 2026
Measured over
Preceding 12 months, checked quarterly
Register with
Illinois Department of Revenue, MyTax Illinois
Local rates
Collected by destination for remote sellers
Illinois sales tax for online sellers: nexus, permit and filingState rate: 6.25%, plus local taxes; Economic nexus: $100,000 of gross receipts; Transaction test: Removed January 1, 2026; Measured over: Preceding 12 months, checked quarterly; Register with: Illinois Department of Revenue, MyTax Illinois; Local rates: Collected by destination for remote sellers.KEY FACTS AT A GLANCEIllinois sales tax for online sellers: nexus,permit and filingState rate6.25%, plus local taxesEconomic nexus$100,000 of grossreceiptsTransaction testRemoved January 1, 2026Measured overPreceding 12 months,checked quarterlyRegister withIllinois Department ofRevenue, MyTax IllinoisLocal ratesCollected by destinationfor remote sellersChecked against official sourcesTax BakersIllinois sales tax for online sellers: nexus, permit and filingState rate: 6.25%, plus local taxes; Economic nexus: $100,000 of gross receipts; Transaction test: Removed January 1, 2026; Measured over: Preceding 12 months, checked quarterly; Register with: Illinois Department of Revenue, MyTax Illinois; Local rates: Collected by destination for remote sellers.KEY FACTS AT A GLANCEIllinois sales tax for onlinesellers: nexus, permit and filingState rate6.25%, plus local taxesEconomic nexus$100,000 of gross receiptsTransaction testRemoved January 1, 2026Measured overPreceding 12 months, checked quarterlyRegister withIllinois Department of Revenue, MyTaxIllinoisLocal ratesCollected by destination for remote sellersChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

What is the Illinois sales tax rate?

The state rate is 6.25% on general merchandise. Remote retailers above the threshold collect state and local taxes based on the delivery address, so combined rates are higher in many areas, including Chicago.

When does an online seller have to collect in Illinois?

You must register and collect if you have a physical presence in Illinois, or if your gross receipts from sales into Illinois over the preceding 12 months are $100,000 or more. Remote sellers check this at the end of each quarter. The 200-transaction test was removed from January 1, 2026. Sales made through a marketplace facilitator are excluded from your own threshold calculation.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

Illinois requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online with the Illinois Department of Revenue through MyTax Illinois. Register before you start collecting.

What are the steps once you have nexus?

  1. Confirm nexus

    Check your presence and your sales into Illinois against its threshold.

  2. Register before collecting

    With the Illinois tax agency, as set out above.

  3. Set up your store

    Charge the correct combined rate for each delivery address and product.

  4. File and pay

    On the schedule Illinois assigns, including zero returns where required.

How are returns filed?

Illinois assigns monthly, quarterly or annual filing based on your tax. Returns are filed online through MyTax Illinois and include local tax by location for remote retailers.

See how to file a sales tax return.

What else should sellers know?

Selling into Illinois?

We check whether you have Illinois nexus, register you, and file your Illinois sales tax returns.

Questions people ask

What is the Illinois economic nexus threshold?

$100,000 or more of gross receipts from sales into Illinois in the preceding 12 months. The 200-transaction test was removed on January 1, 2026.

Does Illinois still have a 200-transaction threshold?

No. It was removed from January 1, 2026.

What is the Illinois sales tax rate?

6.25% state rate on general merchandise, plus local taxes by delivery address for remote retailers.

How do I register for Illinois sales tax?

Online through MyTax Illinois with the Illinois Department of Revenue.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. Illinois Department of Revenue
  2. Illinois Public Act amending 35 ILCS 105/2 and 120/2: remote retailer threshold
  3. Supreme Court of the United States: South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018)
  4. Streamlined Sales Tax Governing Board: Marketplace facilitator state guidance

Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.

More in State sales tax

This guide is general information. It is not tax or legal advice for your situation.