Is labor taxable?

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Whether labor is subject to sales tax depends upon the circumstances under which the labor is performed:

• If tangible personal property is not transferred, labor is not taxable.
• If custom-made items are sold at retail, labor is taxable. See 86 Ill. Admin. Code Section 130.2140.
  

With regard to installation charges, labor charges that are contracted for separately from the selling price of the tangible personal property are not taxable. Labor charges that are a part of the selling price are taxable. See 86 Ill. Adm. Code 130.450.

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