A Guide to Sales Tax in Illinois

A Guide to Sales Tax in Illinois

State Sales Tax Rate:

1. The state sales tax rate in Illinois is currently 6.25%.

Local Sales Taxes:

1. In addition to the state sales tax, local municipalities can also impose their own sales taxes.
2. The combined state and local sales tax rates can vary throughout the state, with some areas reaching as high as 11%.

Items Subject to Sales Tax:

1. Most tangible personal property is subject to sales tax in Illinois. This includes items like clothing, electronics, furniture, and vehicles.

Items Exempt or Taxed at a Reduced Rate:

1. Some items are exempt from sales tax or taxed at a reduced rate. These include:
2. Qualifying food, drugs, and medical appliances: Taxed at a reduced rate of 1%.
3. Certain farm equipment and machinery
4. Manufacturing machinery and equipment
5. Newspapers and magazines

Sales Tax Holidays:

1. Illinois does not currently have any scheduled sales tax holidays.

Sales Tax for Businesses:

1. If you're a business selling taxable goods or services in Illinois, you're required to collect and remit sales tax to the state.
2. You need to obtain a sales tax permit from the Illinois Department of Revenue.
3. There are specific rules regarding nexus (having a significant presence in the state) that determine whether you need to collect sales tax.

Additional Information:

1. For more detailed information about sales tax in Illinois, including specific exemptions and local tax rates, you can refer to the Illinois Department of Revenue website or consult with a tax professional.

Important Note:

1. Sales tax laws and rates can change. It's always recommended to verify the current rates and regulations with the Illinois Department of Revenue or a tax professional.