Rules and a checklist for Illinois remote seller sales tax and the Illinois retailers occupation tax.
What the law asks of sellers
| Requirement | In plain words |
|---|---|
| Register and collect | REG-1 before selling, leasing or hiring; the right rate, State and local together |
| Filing | Form ST-1, due by the 20th after the period; e-file when annual receipts average $20,000 or more |
| Resale | CRT-61 and an active account ID; keep it 3.5 years |
| Use tax | Self-assess on untaxed taxable purchases |
Key rates, amounts and dates
| Item | Amount or date | Year |
|---|---|---|
| State rate | 6.25% general; 1% qualifying drugs and medical appliances | 2026 |
| Transit tax (up 0.25 point) | Cook 1.25% general and 1.50% for grocery and drugs; 1.00% in DuPage, Kane, Lake, McHenry and Will | From 1 Aug 2026 |
| Remote seller | $100,000 of Illinois receipts only; 15% rate if location is missing | From 1 Jan 2026 |
| Late payment | 2% for 1 to 30 days; 10% after; 15% after an audit starts | 2026; Pub. 103 (Sept 2025) |
| Interest | 7% simple | To 31 Dec 2026 |
Source: rate file of the Illinois Department of Revenue
Recent amendments and open items
- 1 Jan 2026: the 200-transaction test and the State grocery tax both ended.
- Remote Retailer Amnesty, ends 31 October 2026: it covers sales made from 1 Jan 2021 through 30 Jun 2026, charged at 9% for items taxed at 6.25% and 1.75% for items taxed at 1%. Payment in full, or a plan requested by that date and completed, waives penalties and interest. Some fees are not waived.
Illinois remote seller sales tax checklist: the Ship-To Lantern Sweep
- Add up Illinois ship-to receipts for the prior 12 months at each quarter-end.
- Note any Illinois office, warehouse or agent.
- Split own-site and marketplace sales; check each facilitator's certification.
- Record the ship-to address on every order; missing data risks the 15% rate.
- Look up rates after each change (registration guide).
- Reconcile ST-1 receipts to the ledger (calendar).
Common mistakes
- Using 200 transactions as a 2026 trigger.
- Accepting a resale claim without checking the buyer's account ID.
- Treating CRT-61 as an exemption certificate.
- Using an old rate after a change.
When to bring in an attorney
- A notice of tax liability or personal-liability notice.
- A seller weighing the amnesty and how far back exposure runs.
- Marketplace agreements shifting sales tax.
How we can help
We handle the U.S. tax, payroll and accounting side, alongside your attorney, Canadian CPA or Indian CA. See sales tax and GST compliance and bookkeeping and accounting.
Frequently asked questions
Must a seller in Canada or India collect Illinois sales tax?
It is covered at $100,000 of Illinois receipts in the prior 12 months, or with an Illinois presence (foreign seller guide).
Is CRT-61 an exemption certificate?
No. It documents resale only.
Does Illinois tax services?
Generally no, but it taxes goods transferred with a service, and leases of goods since 1 January 2025.
Is the Illinois grocery tax gone?
The State tax is. Cities and counties may impose their own 1% grocery tax, and transit grocery taxes remain.
Official sources
- Illinois Department of Revenue: Form ST-1 instructions (R-01/26)
- Illinois Department of Revenue: Bulletin FY 2026-12, destination-based tax
- Illinois Department of Revenue: Bulletin FY 2026-28, Remote Retailer Amnesty
- Illinois Department of Revenue: Bulletin FY 2026-34, transit tax
- Illinois Department of Revenue: CRT-61 instructions
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.