Home Rule and Non-home Rule Sales Taxes

• Statutory
  • Home Rule County Retailers’ Occupation Tax — 55 ILCS 5/5-1006
  • Home Rule County Service Occupation Tax — 55 ILCS 5/5-1007
  • Home Rule Municipal Retailers’ Occupation Tax — 65 ILCS 5/8-11-1
  • Home Rule Municipal Service Occupation Tax — 65 ILCS 5/8-11-5
  • Non-home Rule Municipal Retailers’ Occupation Tax — 65 ILCS 5/8-11-1.3
    
  • Non-home Rule Municipal Service Occupation Tax — 65 ILCS 5/8-11-1.4
    
• Regulations
  
  • Home Rule County Retailers' Occupation Tax — Part 220
    
  • Home Rule County Service Occupation Tax — Part 230
    
  • Home Rule Municipal Retailers' Occupation Tax — Part 270
  • Home Rule Municipal Service Occupation Tax — Part 280
  • Non-home Rule Municipal Retailers' Occupation Tax — Part 693
    
  • Non-home Rule Municipal Service Occupation Tax —Part 694
    

Home rule units of local government are authorized to impose a Home Rule sales tax and certain non-home rule units of local government are authorized to impose a Non-home Rule sales tax to be collected by the Department. Both taxes are imposed on the same general merchandise base as the state sales tax, excluding titled or registered tangible personal property (such as vehicles, watercraft, aircraft, trailers, and mobile homes), and qualifying food, drugs and medical appliances. The Home Rule sales tax is in 0.25% increments with no maximum rate limit. The Non-home Rule sales tax is in 0.25% increments with a 1% maximum rate limit.

The Department also administers the Chicago Home Rule Use Tax on automobiles and other titled or registered items sold by dealers located in the counties of Cook, Kane, Lake, McHenry, DuPage, and Will selling items that will be registered to an address within the corporate limits of Chicago.

Use the Tax Rate Finder to determine tax rates that vary based on location.

Affected retailers and servicepersons report the tax on Form ST-1, Sales and Use Tax and E911 Surcharge Return, or in the case of items that must be titled or registered (i.e., Chicago Home Rule Use Tax), Form ST-556, Sales Tax Transaction Return, or Form ST-556-LSE, Transaction Return for Leases. If imposed, the preprinted rate on Form ST-1, Form ST-556, or Form ST-556-LSE will include the tax. The due date is the same as provided for in the Retailers’ Occupation Tax Act, the Service Occupation Tax Act, and the Use Tax Act. For more information, see Sales & Use Taxes.