What are the retailers' occupation and use tax rates in Illinois? Where can I find a list of these rates?
- 6.25 percent on general merchandise, including items required to be titled or registered by an agency of Illinois state government; and
- 1 percent on qualifying foods, drugs, and medical appliances.
"Sales tax" is the combination of all retailers' occupation and use taxes imposed by the state and units of local government. "Units of local government" means counties, municipalities, townships, special districts (e.g., mass transit district, park district) and units designed as units of local government by law. "Municipalities" means cities, villages, and incorporated towns. Ill. Const. art. VII, § 1. Sales tax is imposed on a retailer's gross receipts from sales of tangible personal property for use or consumption.
Illinois' general state retailers' occupation and use tax rates are:
Note: Public Act (P.A.) 102-0700 suspends the state 1% low rate of retailers’ occupation and use tax on retail sales of groceries normally taxed at this rate from July 1, 2022, through June 30, 2023.
The sales tax rate is higher in some areas because certain local jurisdictions are allowed to impose their own taxes that are combined with the state sales tax rate. When local tax rates change, the change generally occurs on either January 1 or July 1. See also: “What local taxes may be imposed in addition to Illinois sales tax?”
While the Illinois Department of Revenue (IDOR) does not publish a list of all occupation and use tax rates, you may use the Tax Rate Finder to find occupation and use tax rates for specific locations in Illinois. The Tax Rate Finder only lists taxes that are collected by IDOR. In Illinois, units of local government may impose additional taxes and fees that IDOR does not collect. Contact your units of local government to determine if you must pay any additional taxes or fees not collected by IDOR.
See our Use Tax Rate page for information on Illinois use tax rates.
For more information, including information on reporting retailers’ occupation and use tax on retail sales and purchases of items of tangible personal property that must be titled or registered with an agency of Illinois government (e.g., motor vehicles, motorcycles and all-terrain vehicles, watercraft, aircraft, trailers, and manufactured (mobile) homes), see our Sales and Use Taxes information and Illinois Tax Requirements for Cars, Trucks, Vans, Motorcycles, ATVs, Trailers, and Mobile Homes pages.
Note: The Leveling the Playing Field for Illinois Retail Act requires remote retailers and marketplace facilitators that meet certain thresholds to register to remit retailers’ occupation tax for sales of tangible personal property to Illinois customers made on or after January 1, 2021. For more information regarding the Leveling the Playing Field for Illinois Retail Act, see our Leveling the Playing Field for Illinois Retail Act Resource Page.
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