Illinois Sales Tax Calculator 2026

Enter a price to estimate Illinois sales tax at the 8.98% average combined rate. Illinois has a complex local system where rates vary by jurisdiction — see the breakdown below.

✓ Illinois Specific✓ 8.98% Rate✓ Updated 2026

The price of the item in Illinois before tax.

Enter the percentage you were charged, e.g. 8.25 for 8.25%.

Selling SaaS in Illinois?

Digital services taxability varies by state. Check if your SaaS is taxable and understand local nexus rules.

View SaaS Taxability Matrix →
Illinois Example: A $500.00 purchase at the estimated 8.98% combined rate would result in approximately $44.90 in sales tax, for an estimated total of $544.90. Actual amounts may vary by location.
State Rate
6.25%
Avg Local Rate
2.73%
Avg Combined
8.98%
Tax System
Complex Local
2026 rates · Illinois Sales Tax

How to Calculate Illinois Sales Tax

Use these formulas to estimate the sales tax on any purchase in Illinois. The estimated combined rate is 8.98% (6.25% state + 2.73% average local).

Formula: Sales Tax = Price × (Rate ÷ 100)

$100 Example: $100.00 × (8.98 ÷ 100) = $8.98 in sales tax.

Total: $100.00 + $8.98 = $108.98

Reverse formula: Original Price = Total ÷ (1 + Rate ÷ 100). To find the pre-tax price from a receipt, divide the total by 1 + (8.98 ÷ 100).

Quick links:sales tax calculator |U.S. sales tax map |sales tax by ZIP code |reverse sales tax calculator |sales tax by state
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Need to Calculate the Pre-Tax Price Instead?

If you have the total receipt or checkout price and need to work backward to find the original item price before tax was added, use our specialized tool.

Reverse Calculator →
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Interactive Map Comparison: See how Illinois's rate compares to the rest of the nation on our color-coded US Sales Tax by State Map.

Major Illinois City Sales Tax Rates

Sales tax rates in Illinois vary by city and county. Click any city link to use the city-specific calculator.

Quick City Lookup:Chicago sales tax calculatorAurora sales tax calculatorRockford sales tax calculatorNaperville sales tax calculatorSpringfield sales tax calculatorJoliet sales tax calculator
CityCountyCombined RateAction
ChicagoCook County10.500%Chicago sales tax rate →
AuroraKane County8.250%Aurora sales tax rate →
RockfordWinnebago County8.750%Rockford sales tax rate →
NapervilleDuPage County7.750%Naperville sales tax rate →
SpringfieldSangamon County9.750%Springfield sales tax rate →
JolietWill County9.000%Joliet sales tax rate →
PeoriaPeoria County10.000%Peoria sales tax rate →
ElginKane County9.000%Elgin sales tax rate →
WaukeganLake County8.250%Waukegan sales tax rate →
CiceroCook County10.250%Cicero sales tax rate →

Local Tax Complexity in Illinois

Illinois has a state rate of 6.25% and an average local rate of 2.73%, for a combined average of 8.98%. Illinois uses mixed sourcing with origin-based Retailers' Occupation Tax and destination-based Service Occupation Tax. Local municipalities can add their own taxes, pushing combined rates over 10.00% in Chicago.

Because rates can vary by county, city, or special district, the combined rate shown above is a statewide average. Your actual rate may differ depending on the specific location of the transaction. For the most accurate calculation, use the city-specific calculator or verify the rate with the relevant local jurisdiction.

Illinois Sales Tax Rate Card (2026)

Illinois levies a statewide base tax along with various municipal, county, home-rule, and regional transit additions. Below is the summary of rates applicable across the state:

State Base Rate
6.25%

Baseline rate applied statewide

Average Local Rate
2.49%

Weighted local option tax average

Max Combined Rate
10.25%

Found in Chicago and Cicero (Cook County)

Primary Source
IL Dept of Revenue

Official rate publications & bulletins

Illinois City Sales Tax Rates & Comparisons

Combined rates differ between Illinois jurisdictions due to home-rule municipal additions, county taxes, and regional transit (RTA) assessments. Below is the rate breakdown for major cities:

CityCountyCombined RateAction / Status
ChicagoCook County10.25%Use Calculator →
PeoriaPeoria County10.00%Use Calculator →
SpringfieldSangamon County9.75%Use Calculator →
JolietWill County9.00%Use Calculator →
ElginKane County9.00%Use Calculator →
RockfordWinnebago County8.75%Use Calculator →
AuroraKane County8.25%Use Calculator →
WaukeganLake County8.25%Use Calculator →
NapervilleDuPage County7.75%Use Calculator →
ChampaignChampaign CountySubject to local optionsUse Main ZIP Lookup

How Illinois Sales Tax is Calculated

Calculating sales tax in Illinois involves combining the statewide base rate with municipal, county, home-rule, and regional transit additions, then multiplying that combined rate by the taxable purchase amount.

The Combined Sales Tax Formula

Worked Calculation
Combined Rate = State Base Rate (6.25%) + County Tax + Municipal Tax + Home-Rule Additions + RTA Surcharges

Example Calculation: If you buy a taxable item for $100.00 in an Illinois city with a combined tax rate of 10.25% (such as Chicago), the calculation is:

Worked Calculation
Sales Tax = $100.00 × 0.1025 = $10.25
Worked Calculation
Total Price = $100.00 + $10.25 = $110.25

For a $500.00 taxable purchase in the same city:

Worked Calculation
Sales Tax = $500.00 × 0.1025 = $51.25
Worked Calculation
Total Price = $500.00 + $51.25 = $551.25

Chicago Sales Tax Spotlight

The City of Chicago features one of the highest combined sales tax rates in Illinois and the entire United States at 10.25%. This elevated rate is caused by overlapping city, county, and transit agency tax layers:

  • State of Illinois Base Tax: 6.25% (State share)
  • Cook County Home-Rule Sales Tax: 1.75%
  • City of Chicago Home-Rule Municipal Tax: 1.25%
  • Regional Transportation Authority (RTA) Tax: 1.00%

The total combined rate reaches exactly 10.25% inside Chicago city limits. To run calculations specifically for purchases inside the city, you can use our dedicated Chicago sales tax calculator.

Illinois Local Tax Structure & Home-Rule

Illinois' local sales tax structure is composed of several layers: municipal sales taxes, county sales taxes, and regional transit districts (primarily the RTA in northeastern Illinois).

Home-Rule vs. Non-Home-Rule Taxes:
Under the Illinois Constitution, municipalities and counties with "home-rule" status (usually cities with populations over 25,000 or those that elect home-rule by referendum) have broad authority to levy home-rule sales taxes. These additional local taxes do not have a statutory state-imposed cap, which is why cities like Chicago (10.25%), Cicero (10.25%), and Peoria (10.00%) have rates significantly higher than non-home-rule jurisdictions. Home-rule sales taxes are added in increments of 0.25% and are administered directly by the Illinois Department of Revenue (IDOR).

Illinois Sales Taxability & Exemptions

Illinois categorizes commodities differently than most states, imposing varying tax rates depending on the classification of the item:

🍎 Groceries & Food

Illinois taxes qualifying food and groceries (unprepared food items meant for home consumption) at a reduced state rate of 1.00%. However, local city/county options or special home-rule taxes may also apply to food purchases.

🍔 Prepared Food

Prepared food, restaurant meals, hot takeout, and food served for immediate consumption do not qualify for the reduced rate. They are taxed at the full combined local sales tax rate, plus any local municipal dining taxes where applicable.

👕 Clothing

Everyday clothing, footwear, and accessories are fully taxable in Illinois. The state does not offer a general sales tax exemption or annual sales tax holiday for clothing.

💻 Software & SaaS

Software-as-a-Service (SaaS) and purely electronic digital goods are generally exempt from Illinois sales tax, unless there is a physical transfer of API client software or tangible storage media.

Illinois Sales Tax Guide for Businesses

Businesses operating in Illinois or selling to Illinois customers must navigate the state's unique Retailers' Occupation Tax (ROT) and economic nexus requirements:

  • Mixed Sourcing Rules: Illinois uses a hybrid sourcing structure. In-state brick-and-mortar retailers apply origin-based rates (where the sale is accepted), while out-of-state remote sellers must apply destination-based rates (based on the delivery location of the buyer).
  • Economic Nexus Threshold: Remote out-of-state retailers must register to collect and remit tax if their gross sales into Illinois during the preceding 12 months meet or exceed $100,000 OR if they facilitate 200 or more separate transactions.
  • Official Sourcing & Verification: Businesses can register for tax accounts, verify active rates, and file quarterly returns directly through the official Illinois Department of Revenue (IDOR) website.

What Is Taxable in Illinois?

In Illinois, sales tax generally applies to most tangible personal property and some services. The exact taxability of specific items can vary based on state and local rules.

Groceries: Illinois eliminated its 1% state grocery tax on January 1, 2026; 600+ municipalities levy their own 1% local grocery tax instead.

SaaS / Software: Generally exempt from Illinois sales tax unless there is a physical transfer of API client software.

Taxability can vary by item type and local rules. Common taxable items typically include tangible personal property, while some exemptions may apply. Check the official state source for business decisions.

Online Purchases and Remote Sellers in Illinois

Under the South Dakota v. Wayfair ruling, remote sellers may be required to collect and remit sales tax in Illinois if they cross the state's economic nexus threshold.

Nexus threshold: $100,000 in gross sales, or 200 transactions (verify the transaction test — states are repealing it), measured over the preceding 12 months. Illinois has been moving to a revenue-only test (transaction count phased out effective 2026) — verify current status.

Businesses crossing this threshold may need to register with the state and begin collecting the appropriate combined state and local rates. Verify specific obligations with the state taxing authority.

Illinois Sales Tax Compliance Guide for Businesses

Businesses collecting sales tax in Illinois must file regular returns and remit collected tax to the Illinois Department of Revenue. Filing frequency depends on your sales volume — typically monthly for high-volume sellers, quarterly for mid-range, and annually for low-volume filers.

Filing frequency: Monthly for taxpayers with more than $20,000/year in tax; quarterly for $5,000–$20,000/year; annual for under $5,000/year.

Returns are generally due on the 20th of the month following the reporting period. Late filings accrue penalties (typically 5% per month up to 25%) plus interest on unpaid tax. Most states require electronic filing (e-file) once your tax liability exceeds a threshold.

Vendor discount / collector's fee: 1.75% of the first $500 in tax per return (capped at $8.75 per return) for timely filers.

Vendor discounts reduce your total tax liability and are applied automatically when you file on time. They compensate businesses for the administrative cost of collecting and remitting sales tax.

Keep detailed records of all sales, tax collected, exemption certificates, and filed returns for at least 4 years (longer in some states). The Illinois Department of Revenue may audit your sales tax records — maintaining organized records reduces audit risk and simplifies the response process.

For multi-state sellers, use our Multi-State Sales Tax Calculator to estimate obligations across jurisdictions, or the Sales Tax Reconciliation Calculator to match collected tax to filing amounts.

Official Illinois Sales Tax Resources

For official rates, registration, and filing guidance, visit the Illinois Department of Revenue. Always verify current rates with the official state source before making business or compliance decisions.

For informational purposes only. Tax rates change frequently — verify with your state's Department of Revenue before filing. This tool is not a substitute for professional tax advice.

· Rate source metadata is tracked in the TaxesLedger tax data registry.

M. Imtinan Farooq — Data Engineer focused on financial data systems

Data methodology reviewed by M. Imtinan Farooq — Data Engineer focused on financial data systems.

Imtinan specializes in financial data systems and multi-state US sales tax modeling. With hands-on experience building data pipelines that attach source metadata, confidence labels, and verification status to tax records, he helps keep TaxesLedger rates auditable and easier to refresh. This is an educational calculator, not tax, accounting, or legal advice. LinkedIn

Data Sources: State DORs · Canada Revenue Agency · EU VAT authorities · Tax Foundation references

2026 sales tax rates by state

Select a state to see its detailed 2026 sales tax calculator and formula.

StateState RateAvg. LocalCombined
Alabama4.00%5.46%9.46%
Alaska0.00%1.82%1.82%
Arizona5.60%2.77%8.37%
Arkansas6.50%2.98%9.48%
California7.25%1.78%9.03%
Colorado2.90%4.82%7.72%
Connecticut6.35%0.00%6.35%
Delaware0.00%0.00%0.00%
Florida6.00%1.05%7.05%
Georgia4.00%3.37%7.37%
Hawaii4.00%0.50%4.50%
Idaho6.00%0.02%6.02%
Illinois6.25%2.73%8.98%
Indiana7.00%0.00%7.00%
Iowa6.00%0.94%6.94%
Kansas6.50%2.21%8.71%
Kentucky6.00%0.00%6.00%
Louisiana5.00%5.13%10.13%
Maine5.50%0.00%5.50%
Maryland6.00%0.00%6.00%
Massachusetts6.25%0.00%6.25%
Michigan6.00%0.00%6.00%
Minnesota6.88%1.27%8.14%
Mississippi7.00%0.06%7.06%
Missouri4.22%4.10%8.33%
Montana0.00%0.00%0.00%
Nebraska5.50%1.46%6.96%
Nevada6.85%1.39%8.24%
New Hampshire0.00%0.00%0.00%
New Jersey6.63%0.00%6.63%
New Mexico4.88%2.81%7.68%
New York4.00%4.54%8.54%
North Carolina4.75%2.22%6.97%
North Dakota5.00%1.85%6.85%
Ohio5.75%1.48%7.23%
Oklahoma4.50%4.56%9.06%
Oregon0.00%0.00%0.00%
Pennsylvania6.00%0.34%6.34%
Rhode Island7.00%0.00%7.00%
South Carolina6.00%1.43%7.43%
South Dakota4.20%1.91%6.11%
Tennessee7.00%2.61%9.61%
Texas6.25%1.95%8.20%
Utah4.85%2.21%7.06%
Vermont6.00%0.24%6.24%
Virginia4.30%1.47%5.77%
Washington6.50%3.07%9.57%
Washington D.C.6.00%0.00%6.00%
West Virginia6.00%0.39%6.39%
Wisconsin5.00%0.72%5.72%
Wyoming4.00%1.39%5.39%

Frequently asked questions

Quick answers to the most common questions users ask.

What is the Illinois sales tax rate in 2026?
The Illinois state-level sales tax rate (Retailers' Occupation Tax) is 6.25%. Because counties, cities, and regional transportation authorities levy additional local option sales taxes, combined rates paid by consumers range from 6.25% to 10.25%.
Why is Chicago sales tax higher than other Illinois cities?
Chicago's combined rate is 10.25% because it layers multiple local additions on top of the 6.25% state rate: a 1.75% Cook County tax, a 1.25% Chicago home-rule municipal tax, and a 1.00% Regional Transportation Authority (RTA) transit tax.
Does Illinois have local sales taxes?
Yes. Illinois allows counties, municipalities, and regional transit authorities (such as the RTA) to levy local option sales taxes. Home-rule cities and counties can also impose additional home-rule sales taxes.
Are groceries taxable in Illinois?
Illinois taxes qualifying unprepared groceries (food for home consumption) at a special reduced state rate of 1.00%. However, soft drinks, candy, hot prepared foods, and restaurant meals are taxed at the full combined local rates.
Is clothing taxable in Illinois?
Yes, everyday clothing and footwear are fully taxable at the standard combined sales tax rate in Illinois. The state does not offer a general sales tax exemption or annual sales tax holiday for clothing.
How do I calculate Illinois sales tax?
To calculate Illinois sales tax, multiply the taxable sales price by the combined local tax rate. The formula is: Sales Tax = Price × Combined Rate. For instance, a $100 taxable item in Chicago at a 10.25% rate incurs $10.25 in sales tax.
Do online sellers need to collect Illinois sales tax?
Yes. Remote online sellers with no physical presence in Illinois must register and collect sales tax if their sales into the state meet or exceed $100,000 in gross sales OR 200 separate transactions during the prior 12-month period.
Where can I verify Illinois sales tax rates?
You can verify official, up-to-date sales tax rates and local boundaries directly on the official Illinois Department of Revenue (IDOR) website.
Did Illinois really eliminate its grocery tax?
The state 1% grocery tax ended on January 1, 2026 — but that is not the end of grocery tax in Illinois. The same legislation authorised municipalities to impose their own 1% local grocery tax, and more than 600 have done so. The practical result for shoppers is that grocery tax did not disappear so much as change which government collects it, and whether you pay it now depends on your municipality rather than on state law. Source: Illinois Department of Revenue
Why does Illinois use two different sourcing rules?
Illinois is one of the few genuinely mixed-sourcing states. In-state retailers apply origin rates under the Retailers' Occupation Tax — the rate where the seller is located — while remote sellers apply destination rates based on the buyer's address. That means the same product delivered to the same Illinois doorstep can carry a different rate depending on whether the seller is inside or outside Illinois, which is exactly the asymmetry the rule was designed to close. Source: Illinois Department of Revenue
How do I remove Illinois sales tax from a total?
Divide the tax-included total by 1 plus the combined rate that applied to the sale. At the Illinois average of 8.98% that means dividing by 1.0898; in Chicago, where combined rates exceed 10%, the divisor is higher still. Because Illinois sourcing differs between in-state and remote sellers, use the rate printed on the receipt rather than a statewide average whenever the figure feeds a return.
How often do Illinois businesses file sales tax returns?
By annual liability: monthly above $20,000 per year in tax, quarterly between $5,000 and $20,000, and annually below $5,000. Illinois also grants timely filers a discount of 1.75% of the first $500 of tax per return, capped at $8.75. Source: Illinois Department of Revenue
Is SaaS taxable in Illinois?
Generally no at state level. Illinois exempts software and SaaS unless there is a physical transfer of client software — an API or hosted service delivered without tangible media generally falls outside the tax. Chicago is the complication: the city administers its own lease transaction tax that reaches certain cloud and software services, so a Chicago-sited customer can face a city-level charge the state rule does not impose. Source: Illinois Department of Revenue
Do I owe Illinois use tax on out-of-state purchases?
Yes, when Illinois tax was not charged. Use tax applies at the Illinois rate on taxable goods bought elsewhere and used in the state — out-of-state online orders, purchases carried back from Indiana or Wisconsin, and business equipment from unregistered vendors. Individuals report it on the Illinois income tax return; businesses report it with their sales tax filings. Source: Illinois Department of Revenue
Which Illinois cities have the highest combined rates?
Chicago sits at the top, with a combined rate above 10% built from the 6.25% state rate plus Cook County, City of Chicago, and Regional Transportation Authority layers. Several suburban municipalities in Cook and the collar counties run close behind. Because Illinois lets multiple overlapping bodies levy, the combined rate can differ between neighbouring towns and even across a municipal boundary within the same county.
🏛️ IRS Official📊 Tax Foundation

Official Sources & Citations

All rates, thresholds, and regulatory guidance cited on this page are sourced from official government publications and non-partisan research institutions.

Federal & National Sources

🏛️

IRS Sales Tax Calculator

The official Internal Revenue Service tool for determining deductible state and local sales tax for federal income tax purposes.

irs.gov
📊

U.S. Census Bureau

Official government repository for quarterly state and local tax revenue statistics and government finance data.

census.gov
⚖️

Supreme Court — Wayfair Decision

The official government opinion for South Dakota v. Wayfair, Inc., establishing modern economic nexus standards for remote sellers.

supremecourt.gov
💼

SBA Business Tax Guide

Official Small Business Administration guidance on understanding federal and state tax obligations for small business owners.

sba.gov
🤝

Streamlined Sales Tax Board

The official inter-governmental organization facilitating the simplification of sales tax administration across 24 member states.

streamlinedsalestax.org

State Departments of Revenue

🏙️

MyTax Illinois

Official Illinois Department of Revenue portal for address-based tax rate lookups and filings.

tax.illinois.gov

TaxesLedger is an independent educational tool. We are not affiliated with any government agency. Rate records include source metadata and verification status; always confirm with your jurisdiction's official Department of Revenue before filing. Last registry update: September 11, 2026.

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