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Home Rule and Non-home Rule Sales & Use Taxes

Statutory References

Definition

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 titled or registered tangible personal property (such as 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 Chicago Home Rule Use Tax on automobiles and other titled or registered items sold by dealers located in the counties of Cook, Kane, Lake, McHenry, DuPage, and Will selling items that will be registered to an address within the corporate limits of Chicago.

Tax Rate

Use the Tax Rate Finder to determine tax rates that vary based on location.

Form/Filing & Payment Requirements

Affected retailers and servicepersons report the tax on Form ST-1, Sales and Use Tax and E911 Surcharge Return, or in the case of items that must be titled or registered (i.e., Chicago Home Rule Use Tax), Form ST-556, Sales Tax Transaction Return. If imposed, the preprinted rate on Form ST-1 or Form ST-556 will include the tax. The due date is the same as provided for in the Retailers’ Occupation Tax Act, the Service Occupation Tax Act, and the Use Tax Act. For more information, see “Sales & Use Taxes."