Illinois · Sales tax · updated
Illinois sales tax permit: who needs one
Yes. Businesses making taxable sales in Illinois need a permit from Illinois's tax agency before the first sale. Out-of-state sellers must register once sales into Illinois pass $100,000, measured over the rolling 12 months. As of October 2026.
Questions first? Ray or Vinny picks up at (954) 470-8356.
Sales tax in Illinois, step by step
Each rule comes from the state's own page, linked in the table below.
- 1
Selling in the state? Register first
Before your first saleA store, office, employees or inventory in Illinois (including inventory in a marketplace warehouse) means you register before you sell. Register with the Illinois DOR, which lists any registration fee or security deposit it requires.
- 2
Selling from out of state? Watch the threshold
Economic nexusYou must register once sales into Illinois pass $100,000 in the rolling 12 months. What counts: cumulative gross receipts from sales of tangible personal property to Illinois purchasers (remote retailer's own sales; marketplace-facilitated sales excluded). Reviewed on a rolling quarterly basis; the 200-transaction test was removed effective 1/1/2026.
- 3
Count marketplace sales the state's way
Amazon, Etsy, eBayIllinois does not count sales made through a marketplace toward the threshold. The marketplace usually collects the tax on those sales, but you may still need to register for your own website's sales.
- 4
Collect the right rate and file every period
Where people get stuckThe rate is the state rate plus any local rate where the buyer receives the goods. When you register, the Illinois DOR assigns how often you file; file every period it assigns.
- 5
Selling into other states too?
Free toolSelling into other states is a separate question: each one has its own threshold. Our free Nexus Detective checks your sales against all of them.
Illinois sales tax rules at a glance
| Rule | Illinois |
|---|---|
| Remote-seller sales threshold | $100,000 |
| Transaction test | since |
| Measured over | rolling 12 months |
| What counts | cumulative gross receipts from sales of tangible personal property to Illinois purchasers (remote retailer's own sales; marketplace-facilitated sales excluded) |
| Marketplace sales count? | No |
| Streamlined Sales Tax member | No |
| Source | Illinois Department of Revenue – Bulletin FY 2026-12, checked |
From the state's own page, linked above. Rates and thresholds change; the state's page wins if it differs.
We do not register for sales tax or file returns. The registration is a form you can file yourself; our sales tax registration guide walks through it, and a CPA can take over the filing.
Frequently asked questions
Do I need a sales tax permit in Illinois?
Yes. Businesses making taxable sales in Illinois need a permit from Illinois's tax agency before the first sale. Out-of-state sellers must register once sales into Illinois pass $100,000, measured over the rolling 12 months.
Does Illinois charge for a sales tax permit?
Some states charge nothing and some charge a small fee or ask for a security deposit. The Illinois DOR site lists Illinois's current requirement.
Do I need a permit in Illinois if I only sell online?
Yes once your sales into Illinois pass the threshold above, or right away if you store inventory or have staff there.
Does forming an LLC register me for sales tax?
No. The LLC filing and the sales tax registration are separate. You register with the state tax agency after the LLC exists, using its EIN.
Does Vermilion Vitez file sales tax returns?
No. We form the LLC and keep it in good standing; sales tax registration and returns are done with the state or a CPA.
More Illinois business guides
Nearby states
Free tool
See every state where you owe
Enter your sales by state and the Nexus Detective shows which thresholds you have passed, with each state's own link.
Rather talk first? Call Ray or Vinny at (954) 470-8356.