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FY 2027-03, October 2026
Simplified Municipal Telecommunications Tax Rate Changes, Effective January 1, 2027
To: All persons who, in the ordinary course of business, provide telecommunications service
Effective January 1, 2027, the following municipalities are imposing a Municipal Telecommunications Tax rate. The combined rate is the State Telecommunications Excise Tax rate of 8.65 percent (.0865) plus the local Simplified Municipal Telecommunications Tax rate of up to a maximum rate of 6.00 percent (.06) outside of Chicago.
Simplified Municipal Telecommunications Tax Rate Changes
| Municipalities | Combined rate ending December 31, 2026 | Local rate change effective January 1, 2027 | Combined rate beginning January 1, 2027 |
|---|---|---|---|
| Bushnell | 8.65% | +5.00 | 13.65% |
| Lovington | 8.65% | +6.00 | 14.65% |
| Westmont | 14.65% | -1.00 | 13.65% |
What action should I take if I provide services subject to Telecommunications Excise Tax?
You must register with the Illinois Department of Revenue (IDOR) for a Telecommunications Excise Tax Account and identify each municipality where you provide telecommunications service.
You must also adjust your cash register and any computer program so that beginning on January 1, 2027, you will collect and pay the correct tax rate. You need to contact your software vendor if you use software to create your forms.
To verify your telecommunications tax rates (i.e., State and local telecommunications taxes) go to the MyTax Illinois Tax Rate Finder at mytax.illinois.gov and select rates for January 2027.
What form must I use to report Telecommunications Excise Tax?
You must file Form RT-2, Telecommunications Tax Return, and, if applicable, Form RT-2-M, Telecommunications Tax Schedule, for each reporting period and pay the tax collected.
When you file electronically using MyTax Illinois, the combined State and local telecommunications tax rates will be populated for you according to your registered locations.
Questions?
- Visit IDOR's website at tax.illinois.gov.
- Call us at 217-782-5906.
- See 35 ILCS 636/5-20(a)(2).
FY 2027-03 (N-10/26)
This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.