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
14.95%
Max Combined
9.00%
Nexus Threshold
$100K
Example: $100 purchase in Illinois
Tax to collect (avg)
$14.95
Total from customer
$114.95
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
- 8.70%
- Maximum local rate
- 2.75%
- Avg combined rate
- 14.95%
- 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.