Illinois Sales Tax

Illinois sales tax is a combination of retailers’ occupation and use taxes levied by the state and local levels of government. Local units of government include counties, municipalities (cities, villages, townships), and special districts such as mass transit districts and parks. These units impose their own additional sales tax rates on top of the statewide rate. Illinois has a standard state sales tax rate of 6.25%, with local rates that vary by county and city.

If you are a retailer selling tangible personal property to Illinois residents, you must collect Illinois sales tax at the destination of the sale. You are also required to file a return and report the collected tax to the department. Penalties and interest accrue if you don’t file or pay your sales tax on time. If you don’t have the resources to fight a state and local tax assessment, there are settlement options available to you. A seasoned state and local tax professional can help you evaluate your options and make a smart decision. A good settlement option can save you both time and money. A successful settlement can also help you avoid an audit. However, it is important to remember that you still have the right to protest your case through administrative hearings.

Illinois Sales Tax Permit Registration

Businesses should register for a Illinois Sales Tax Permit with the Department of Revenue (DOR) before making any sales in the state. The registration process is free and typically takes 2 days online or 6-8 weeks via mail. You can register online at MyTaxIllinois or use a paper form, REG-1.

Once registered, a business is assigned a filing frequency based on its size and sales volume. Larger businesses are usually asked to file more frequently than smaller companies.

How to Pay Illinois Sales Tax?

You can pay Illinois sales tax online through the MyTax Illinois portal. Just enter your payment information and click “Submit.” You can also use ACH credit, which will transfer funds directly from your bank account to the Department of Revenue’s. This is the preferred method of payment for most businesses.

Using a free lookup tool, you can determine which combined state and local rate to charge your clients. This will help you avoid overcharging your customers.

If you have a sales tax problem, you should contact the Department of Revenue immediately. You can request an administrative hearing or file a petition with the Independent Tax Tribunal to resolve your issue. You may also appeal the tribunal’s decision to the Board of Appeals.

Remember, you could be subject to fines and interest charges if you don’t pay your sales tax. It is also important to file returns and remit collected taxes on time. The longer you wait to file, the more it will cost you. Therefore, it is crucial to register for sales and use tax before you start selling your products in the state of Illinois.

Illinois Sales Tax Due Dates

Illinois requires all businesses to file sales tax returns and remit taxes owed on time. This can be done online using MyTax Illinois. When sales tax returns are due depends on the filing frequency assigned to your business. Most states assign a monthly, quarterly, or annual filing frequency. Returns are generally due the 20th day of the month following your assigned filing period.