Illinois Sales Tax Calculator (2026 Rates)

Current Illinois sales tax rates, city examples, economic nexus thresholds, exemptions, and FAQ.

State Rate

6.25%

Avg Combined

8.81%

Max Combined

11.00%

Nexus Threshold

$100K

Example: $100 purchase in Illinois

Tax to collect (avg)

$8.81

Total from customer

$108.81

About Illinois Sales Tax

Illinois charges a 6.25% state sales tax, but local rates — particularly in Chicago — push the combined rate to some of the highest in the nation. Chicago's combined rate of 10.25% includes state, county, city, and special district taxes. The average combined rate across Illinois is 8.70%. Illinois is an origin-based state, meaning in-state sellers collect based on their business location's rate. However, general merchandise sold by remote sellers is collected at the destination rate. Home-rule municipalities (like Chicago) can set their own local sales tax rates, which is why Chicago's rate is so much higher than the state average. The economic nexus threshold in Illinois is $100,000 in annual gross sales OR 200 separate transactions into the state. Either condition triggers nexus. Once triggered, you must register with the Illinois Department of Revenue. Illinois taxes groceries and prescription drugs at a reduced rate of 1% (plus local taxes), rather than fully exempting them like most states. This is an important distinction for grocery sellers.

Illinois Sales Tax by City

City	Combined Rate
Chicago	10.25%
Springfield	7.75%
Peoria	8.25%
Rockford	8.25%
Naperville	8.00%

Rates shown are combined state + local rates for representative cities. Actual rates may vary by specific address, district, or zone. Verify with the Illinois Department of Revenue.

Illinois Sales Tax Facts

Tax Structure

State rate: 6.25%
Average local rate: 2.56%
Maximum local rate: 4.75%
Avg combined rate: 8.81%
Sourcing method: Origin + home-rule

Economic Nexus

Threshold: $100K
Includes transactions: No

Once you exceed this threshold in annual sales into Illinois, you must register and collect sales tax.

Illinois Sales Tax Exemptions

Groceries (taxed at reduced 1% rate)
Prescription and OTC drugs (1% rate)
Farm machinery and equipment
Manufacturing machinery
Sales to governmental bodies

Illinois Sales Tax FAQ

What is the Chicago sales tax rate in 2026?

Chicago has one of the highest combined sales tax rates in the United States at 10.25%. This includes 6.25% state + 1.75% city + 1.25% county + 1% Regional Transportation Authority (RTA) tax. Outside Chicago, the average combined rate in Illinois is 8.70%.

What is the economic nexus threshold for Illinois?

Illinois's economic nexus threshold is $100,000 in annual gross sales OR 200 separate transactions into the state. Either condition triggers the requirement to register with the Illinois Department of Revenue and begin collecting sales tax.

Are groceries taxed in Illinois?

Yes, but at a reduced rate. Unlike most states that fully exempt groceries, Illinois taxes food for human consumption at a reduced state rate of 1% (plus applicable local taxes). Prescription and OTC drugs are also taxed at the 1% reduced rate. This is an important distinction for grocery and pharmacy sellers.

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Data Sources & Disclaimer

Sales tax rates are based on data from the Sales Tax Institute and Avalara, effective for 2026 (updated annually). State and local sales tax rates are approximate averages. Actual rates vary by city, county, and district. Economic nexus thresholds are simplified. Always verify with the Illinois Department of Revenue or a tax professional.

What Is the Sales Tax Calculator?

The Sales Tax Calculator is a free, browser-based tool that shows current state and local sales tax rates for all 50 US states plus Washington DC. It displays the statewide base rate, average combined rate (state + local), maximum local rate, and economic nexus thresholds — the data you need to know whether you must collect sales tax in a given state. No signup, no data upload: every lookup happens in your browser.

Who Should Use This Tool?

This tool is built for e-commerce sellers, dropshippers, resellers, small business owners, marketplace sellers (Amazon, eBay, Etsy), and anyone who sells products across state lines. If you sell to customers in multiple states, you need to know each state's sales tax rate and whether you have economic nexus there.

How Does This Tool Work?

Select a state from the dropdown or click any state in the 50-state grid. The tool instantly shows: (1) Statewide base sales tax rate. (2) Average combined rate (state + average local taxes). (3) Maximum possible local rate (worst case). (4) Economic nexus threshold — the sales volume or transaction count that triggers a tax collection obligation in that state. Enter a sale amount to calculate the exact tax to collect.

How Does Sales Tax Work When Selling to California?

An online seller ships a $100 order to Los Angeles, California: • California state rate: 7.25% (highest base rate in the US) • LA combined rate: ~9.5% (state + district taxes) • Tax to collect: $100 × 9.5% = $9.50 • Total from customer: $109.50 • Economic nexus threshold: $500,000 in annual CA sales Compare: the same $100 order to Delaware, Oregon, or Montana would have $0 sales tax — those states have no sales tax.

Frequently Asked Questions

Which states have no sales tax?

Five states have no statewide sales tax: Delaware, Montana, New Hampshire, Oregon, and Alaska (Alaska has no state sales tax but allows local municipalities to levy their own, averaging 1.81%). If you sell exclusively to these states, you do not need to collect sales tax.

What is economic nexus?

Economic nexus is a legal threshold that requires a business to register for and collect sales tax in a state, even without a physical presence there. After the 2018 Supreme Court ruling in South Dakota v. Wayfair, most states set the threshold at $100,000 in annual sales or 200 transactions. Some states (CA, NY, TX) use a $500,000 threshold. Check each state's threshold in this tool.

What is the difference between state and local sales tax?

State sales tax is a base rate set by the state government. Local sales tax is an additional rate levied by counties, cities, and special districts on top of the state rate. The combined rate (state + local) is what customers actually pay. For example, Colorado's state rate is only 2.9%, but local taxes push the average combined rate to 7.65%.

How often do sales tax rates change?

State sales tax rates change infrequently, but local rates can change quarterly as new districts are created or existing rates are adjusted. We update our data annually. For the most current local rates, always verify with your state Department of Revenue or use a tax compliance service like Avalara or TaxJar.

Do marketplace facilitators handle sales tax?

In most states, marketplace facilitators (Amazon, eBay, Etsy, Walmart Marketplace) are responsible for collecting and remitting sales tax on behalf of third-party sellers. However, if you also sell through your own website or other channels, you may still need to register and collect in states where you meet the economic nexus threshold.

What is origin-based vs destination-based sales tax?

In origin-based states (like Illinois, Texas, Utah), you collect sales tax at the rate of your business location. In destination-based states (like Washington, California, New York), you collect at the rate of the customer's shipping address. Most states are origin-based, but the trend is moving toward destination-based.