Sales Tax Rate Change Summary, Effective July 1, 2026

To: All retailers and servicepersons conducting business in taxing jurisdictions whose sales tax rate is changing

This bulletin replaces FY 2026-26, Sales Tax Rate Change Summary Effective July 1, 2026 (N-05/26).

Effective July 1, 2026, certain taxing jurisdictions have imposed a local sales tax or changed their local sales tax rate on general merchandise sales. These local sales taxes are referred to in this bulletin as "locally imposed sales tax."

The following taxes are affected:

• business district sales tax;
• county public safety tax;
• home rule municipal sales tax;
• Metro-East Mass Transit District (MED) sales tax; and 
• non-home rule municipal sales tax.

You must adjust your cash register and any computer program so that beginning on July 1, 2026, you will collect and pay the correct sales tax. You need to contact your software vendor if you use software to create your forms.

To verify your new combined sales tax rate (i.e., State and local sales taxes), go to the MyTax Illinois Tax Rate Finder at mytax.illinois.gov and select rates for July 2026.

The same items of general merchandise reported on Line 4a of Forms ST-1 and ST-2 that are subject to State sales tax are also subject to the locally imposed sales tax.

Locally imposed sales tax does not apply to:

• sales of drugs and medical applicances¹ that are reported on Line 5a of Forms ST-1 and ST-2; or
• items that must be titled or registered by an agency of Illinois State government and reported on dealer-filed transaction returns.

If a sale was subject to a sales tax rate different from the current sales tax rate, report this sale on Line 8a of Forms St-1 and St-2.²

The chart below outlines the sales tax rate for each jurisdiction that has imposed a change in local sales tax rates collected by IDOR, effective July 1, 2026.

To verify your combined sales tax rate (i.e., State and local sales taxes), go to the MyTax Illinois Tax Rate Finder at mytax.illinois.gov and select rates for July 2026.

Generally, your business address determines whether business district sales tax applies to your sales. Refer to our MyTax Illinois Tax Rate Finder at mytax.illinois.gov for a list of addresses.

Sales made by remote retailers who meet the $100,000 tax remittance threshold are subject to business district sales taxes if the property is shipped or delivered to an address in the business district.³ Sales made over a marketplace by marketplace facilitators who meet the $100,000 tax remittance threshold are subject to business district sales tax as follows: sales made on behalf of marketplace sellers are subject to business district sales taxes if the property is shipped or delivered to an address in the business district,⁴ a marketplace facilitator's own sales (or sales for which the marketplace seller is not identified) are subject to business districts sales tax if the inventory is shipped from an address in the business district or the selling activities otherwise occur at an address in the business district,⁵ and a marketplace facilitator's own sales (or sales for which the marketplace seller is not identified) that are not fulfilled from inventory in Illinois and for which selling is not engaged in at any location in Illinois are subject to business district sales tax if the property is shipped or delivered to an address in the business district.⁵ Sales made by a retailer maintaining a place of business in the State that are not fulfilled from inventory in Illinois and for which selling is not engaged in at any location in Illinois are subject to business district sales tax if the property is shipped or delivered to an address in the business district.⁶

² 86 Ill. Adm. Code 130.101(b)

³ 86 Ill. Adm. Code 131.110(b)

⁴ 86 Ill. Adm. Code 131.130(f)

⁵  86 Ill. Adm. Code 131.130(g)

⁶ Public Act 103-983

⁷ Effective July 1, 2026, Pin Oak Township was annexed into the MED for the following locations:

• Edwardsville
• Edwardsville Park North BD
• Troy
• Troy Business Improvement District

⁸ 0.75% Business District decrease in Fairfield + 0.75% Non-Home Rule increase in Fairfield = +0.00% rate change

⁹ The 1.00% Non-Home Rule rate increase for Metropolis also applies to the rate inside the Business District 

• Metropolis Interstate North Business District 7.25% + 1.00% = 8.25%

* Rate change and new combined rate effective July 1, 2026, were corrected for Fairfield and Fairfield Business District. Original bulletin was only posted to IDOR’s website and corrected prior to printing. Bulletin reissued May 20, 2026.