Skip to main content

Scam Alert: Fake Texts and Websites Impersonating IDOR

Be alert for fraudulent messages or websites attempting to steal your banking information, login credentials, or credit card details. The Illinois Department of Revenue (IDOR) will never request personal or financial information via text message. To confirm official communications or contact details, always visit https://tax.illinois.gov.

Employment Sign Up for Updates

Retailer Resources and Highlights

Changes to the Sales Tax on Groceries

Effective January 1, 2026, Public Act (P.A.) 103-0781 will eliminate the State of Illinois one-percent (1%) low rate of sales and use tax on retail sales of groceries normally taxed at this rate.

For additional information, see FY 2026-03, Illinois Grocery Tax Changes Effective January 1, 2026, and PIO-119, Grocery Receipts Reporting on Form ST-1 and Form ST-2 Chart.

Changes to Destination-Based Retailers' Occupation Tax

Effective January 1, 2026, the 200-transaction threshold for requiring remote retailers and marketplace facilitators to collect and pay destination-based sales tax will be removed.

Beginning January 1, 2026,

  • For destination-based sales, if a taxpayer fails to provide sufficient information to determine the proper location: IDOR will assess tax on the gross receipts of such sales to undetermined tax locations at the rate of 15%.
  • These sales will be assigned to undetermined tax locations.
  • Unprocessable penalties will not apply to such sales. 

See Public Act 104-0006 and FY 2026-12, Destination-Based Retailers' Occupation Tax Changes for additional information.

Leased or Rented Tangible Personal Property

Effective January 1, 2025, if you lease or rent tangible personal property in the ordinary course of your business, you are considered a retailer subject to Illinois’ Sales and Use Tax laws, and you must register with the Illinois Department of Revenue (IDOR) and pay tax on your lease or rental receipts. For additional information, see FY 2025-15, Illinois Sales and Use Tax Applies to Leased or Rented Tangible Personal Property, FY 2025-17, Reporting Requirements for Certain Titled or Registered Property Subject to Tax on Lease or Rental Receipts, and Pub-113-L, Lease Tax FAQs.

Retailers’ Discount

For sales and use tax and other related returns due on or after January 1, 2025, the retailers’ discount amount is limited to $1,000 per month. 

For certain transaction returns due on or after January 1, 2025 (for vehicles with a delivery date on or after December 12, 2024), the retailers’ allowance (discount) amount is limited to $1,000 per month.

For additional information, see FY 2025-04, Retailers’ Discount for Certain Tax Returns Capped at $1,000 Per Month and FY 2025-11, Retailers’ Allowance for Certain Transaction Returns Capped at $1,000 Per Month.

Leveling the Playing Field

Public Acts 101-31 and 101-604 amended the Retailers’ Occupation Tax and enacted the Leveling the Playing Field for Illinois Retail Act to implement a series of structural changes to Illinois’s sales tax laws. The changes are designed to level the playing field between Illinois-based retailers and remote retailers by imposing state and local retailers’ occupation taxes on Illinois retailers and remote retailers alike.

For additional information, visit our Leveling the Playing Field resource page.