Home Rule and Non-Home Rule Sales Taxes

• Statutory
  • Home Rule County Retailers’ Occupation Tax — 55 ILCS 5/5-1006
  • Home Rule County Service Occupation Tax — 55 ILCS 5/5-1007
  • Home Rule Municipal Retailers’ Occupation Tax — 65 ILCS 5/8-11-1
  • Home Rule Municipal Service Occupation Tax — 65 ILCS 5/8-11-5
  • Non-Home Rule Municipal Retailers’ Occupation Tax — 65 ILCS 5/8-11-1.3
    
  • Non-Home Rule Municipal Service Occupation Tax — 65 ILCS 5/8-11-1.4
    
• Regulations
  
  • Home Rule County Retailers' Occupation Tax — 86 Ill. Adm. Code Part 220
    
  • Home Rule County Service Occupation Tax — 86 Ill. Adm. Code Part 230
    
  • Home Rule Municipal Retailers' Occupation Tax — 86 Ill. Adm. Code Part 270
  • Home Rule Municipal Service Occupation Tax — 86 Ill. Adm. Code Part 280
  • Non-Home Rule Municipal Retailers' Occupation Tax — 86 Ill. Adm. Code Part 693
    
  • Non-Home Rule Municipal Service Occupation Tax —86 Ill. Adm. Code Part 694
    

Home rule units of local government are authorized to impose a home rule sales tax, and certain non-home rule units of local government are authorized to impose a non-home rule sales tax to be collected by the Department. Both taxes are imposed on the same general merchandise base as the state sales tax, excluding tangible personal property that must be titled or registered by an agency of state government (i.e., vehicles, watercraft, aircraft, trailers, and mobile homes), and qualifying food, drugs and medical appliances. The home rule sales tax is in 0.25% increments with no maximum rate limit. The non-home rule sales tax is in 0.25% increments with a 1% maximum rate limit.

The Department also administers the home rule use tax for the city of Chicago on tangible personal property that must be titled or registered by an agency of state government when they are sold by dealers located in the counties of Cook, Kane, Lake, McHenry, DuPage, and Will and will be registered to an address within the corporate limits of Chicago.

Home rule and non-home rule sales taxes, if imposed, are part of the combined local sales tax rate for a retailer's site location. Use the MyTax Illinois Tax Rate Finder to determine the tax rate for a site location.

Affected retailers and servicepersons report the home rule or non-home rule sales taxes as part of the combined sales tax rate on Form ST-1, Sales and Use Tax and E911 Surcharge Return, or in the case of tangible personal property that must be titled or registered by an agency of state government, on Form ST-556, Sales Tax Transaction Return, or Form ST-556-LSE, Transaction Return for Leases. For more information on forms, see the Sales and Use tax Information Page.