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Illinois Sales Tax Guide

Retailers' Occupation Tax and Use Tax with state and highly granular local layers

Statewide general taxYes
Marketplace postureGenerally excluded with evidence
Exemption formCRT-61
01

How Illinois's system is organized

Illinois sourcing is role-sensitive. In-state retailers often source occupation tax from the selling location, while remote retailers can face destination-based state and local use-tax rules. Home-rule, business-district, RTA, and Metro-East layers add submunicipal complexity.

02

The headline rate is only the beginning

The state general merchandise component is 6.25%, but local overlays and sourcing regime determine the combined result. ZIP codes cannot safely identify many business and transportation districts.

Why location data matters

Tax situs is a legal determination. Mailing city, ZIP code, county proximity, and geocoding are useful evidence, but none should silently substitute for the jurisdiction rule that controls the transaction.

03

Rules that can change the answer

Product identity should be established before a rate is selected. In Illinois, examples that deserve their own rule path include:

  • qualifying food, drugs, and medical appliances use reduced-rate treatment
  • software taxability depends on license terms and local rules
  • Chicago and other home-rule jurisdictions can impose additional taxes outside the state return

These are examples, not an exhaustive taxability matrix. Bundles, customer use, delivery method, exemptions, and effective dates can change the result.

04

Beyond three headline examples

The underlying research inventory contains 23 Illinois treatment records across 19 product families. The inventory includes effective-date, evidence, rate-class, local-interaction, and sourcing fields. Its breadth is not a claim that every observed treatment is active in production: unresolved or independently unreviewed records remain non-operative.

23treatment records
19product families
cannabismanufacturing inputmenstrual productrentalcandycustom software
Explore all 23 Illinois research recordsSearch treatment, rate, local, sourcing, evidence, and effective-date fields

23 of 23 records shown

general tangible personal propertyordinary

Research observation — independent review required

Illinois' high state rate for general merchandise is 6.25 percent for the matrix effective 2026-01-01.

Treatment
included in base
Rate application
general rate lookup
Rate class
ordinary
State rate
6.25%
Taxable base
retail sales price
Local interaction
ordinary local stack
Sourcing
standard situs
Evidence required
product identity transaction role situs and rate window
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
occupation versus use tax role and local windows required

Before operational use: ingest Tax Rate Finder local windows; encode occupation versus use tax role; independent review

State authority research source

groceryspecial

Research observation — independent review required

Illinois eliminated the 1 percent state grocery tax on 2026-01-01, while municipalities and counties may impose an exactly 1 percent local grocery tax by approved ordinance.

Identity or conditions: sale context: off premises qualifying food

Treatment
included in base
Rate application
special rate required
Rate class
special
State rate
0%
Taxable base
state exempt qualifying grocery local ordinance depends on situs
Local interaction
product specific local
Sourcing
standard situs
Evidence required
food identity consumption context and local grocery ordinance
Effective start
2026-01-01
Effective-window status
state elimination start verified local ordinances require windows
Runtime boundary
food boundary and local grocery ordinance resolver required

Before operational use: ingest approved local grocery ordinance windows; encode complete food boundary; independent review

State authority research source

prepared foodordinary

Research observation — independent review required

Food for on-premises or immediate consumption is taxable at the high rate.

Identity or conditions: sale context: on premises or immediate consumption

Treatment
included in base
Rate application
general rate lookup
Rate class
ordinary
State rate
6.25%
Taxable base
prepared food sales price
Local interaction
ordinary local stack
Sourcing
standard situs
Evidence required
food identity preparation and consumption context
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
prepared food boundary and local windows required

Before operational use: encode complete immediate-consumption boundary; ingest local windows; independent review

State authority research source

cannabisspecial

Research observation — independent review required

Adult-use cannabis and cannabis-infused food use the high sales-tax rate rather than grocery treatment.

Identity or conditions: subtype: adult use

Treatment
included in base
Rate application
special rate required
Rate class
special
State rate
6.25%
Taxable base
adult use cannabis sales price
Local interaction
product specific local
Sourcing
standard situs
Evidence required
cannabis subtype form thc and situs
Effective start
2026-01-01
Effective-window status
sales tax component verified other components require detail
Runtime boundary
cannabis component and product specific local resolver required

Before operational use: pin cannabis excise and local component authorities; encode form and THC distinctions; independent review

State authority research source

candyordinary

Research observation — independent review required

Qualifying candy is taxable at the high rate, with flour and refrigeration exclusions in the definition.

Treatment
included in base
Rate application
general rate lookup
Rate class
ordinary
State rate
6.25%
Taxable base
candy sales price
Local interaction
ordinary local stack
Sourcing
standard situs
Evidence required
candy definition flour and refrigeration facts
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
candy definition and local windows required

Before operational use: encode candy definition; ingest local windows; independent review

State authority research source

soft drinkordinary

Research observation — independent review required

Qualifying sweetened soft drinks are taxable at the high rate, subject to milk-substitute and greater-than-50-percent juice exclusions.

Treatment
included in base
Rate application
general rate lookup
Rate class
ordinary
State rate
6.25%
Taxable base
soft drink sales price
Local interaction
ordinary local stack
Sourcing
standard situs
Evidence required
beverage sweetener milk substitute and juice percentage facts
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
soft drink definition and local windows required

Before operational use: encode beverage definition; ingest local windows; independent review

State authority research source

prescription drug humanreduced

Research observation — independent review required

Qualifying prescription medicine is taxable at the 1 percent low state rate; local low-rate taxes are limited to transportation districts.

Identity or conditions: intended user: human; prescription status: prescription

Treatment
included in base
Rate application
special rate required
Rate class
reduced
State rate
1%
Taxable base
qualifying medicine sales price
Local interaction
product specific local
Sourcing
standard situs
Evidence required
drug identity human use prescription and payer
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
drug payer and transportation district local resolver required

Before operational use: encode Medicare Part D payer rule; ingest transportation-district windows; independent review

State authority research source

nonprescription drug humanreduced

Research observation — independent review required

Qualifying nonprescription medicine uses the 1 percent low state rate, but grooming and hygiene products do not qualify.

Identity or conditions: intended user: human; prescription status: nonprescription; sale context: qualifying medicine not grooming or hygiene

Treatment
included in base
Rate application
special rate required
Rate class
reduced
State rate
1%
Taxable base
qualifying medicine sales price
Local interaction
product specific local
Sourcing
standard situs
Evidence required
drug identity human use and grooming hygiene exclusion
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
medicine and grooming boundary plus local resolver required

Before operational use: encode medicine versus grooming boundary; ingest transportation-district windows; independent review

State authority research source

cannabisreduced

Research observation — independent review required

Medical cannabis sold to a registered patient uses the low state sales-tax rate.

Identity or conditions: purchaser status: medical cardholder

Treatment
included in base
Rate application
special rate required
Rate class
reduced
State rate
1%
Taxable base
qualifying medical cannabis sales price
Local interaction
product specific local
Sourcing
standard situs
Evidence required
medical cannabis identity and registered patient status
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
medical status and cannabis component resolver required

Before operational use: pin other medical-cannabis tax components; encode registered-patient evidence; ingest local windows; independent review

State authority research source

durable medical equipmentreduced

Research observation — independent review required

Medical appliances directly substituting for a malfunctioning human body part use the 1 percent low state rate.

Identity or conditions: intended user: human; qualifying use: direct substitute for malfunctioning body part

Treatment
included in base
Rate application
special rate required
Rate class
reduced
State rate
1%
Taxable base
qualifying medical appliance sales or lease price
Local interaction
product specific local
Sourcing
standard situs
Evidence required
device identity human use and direct substitution function
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
medical function and transportation district local resolver required

Before operational use: encode direct-substitution medical function; ingest transportation-district windows; independent review

State authority research source

insulinreduced

Research observation — independent review required

Insulin and specified human diabetic testing and administration items use the 1 percent low state rate.

Identity or conditions: intended user: human; qualifying use: human diabetes treatment

Treatment
included in base
Rate application
special rate required
Rate class
reduced
State rate
1%
Taxable base
qualifying diabetic treatment item sales price
Local interaction
product specific local
Sourcing
standard situs
Evidence required
diabetic treatment item identity and human use
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
diabetic item scope and transportation district local resolver required

Before operational use: encode complete qualifying item list; ingest transportation-district windows; independent review

State authority research source

menstrual productno rate

Research observation — independent review required

Tampons menstrual pads and menstrual cups are exempt through 2026-12-31.

Treatment
excluded from base
Rate application
no rate
Rate class
no rate
State rate
0%
Local rate
0%
Taxable base
qualifying feminine hygiene product excluded
Local interaction
no local rate
Sourcing
standard situs
Evidence required
tampon pad or menstrual cup identity
Effective start
2026-01-01
Effective end
2026-12-31
Effective-window status
matrix edition and expiration verified
Runtime boundary
product list and expiration transition required

Before operational use: pin pre-2026 start if historical calculation is required; independent review

State authority research source

menstrual productunresolved

Research observation — independent review required

The 2026 matrix states the exemption ends on 2026-12-31 but does not independently establish the post-expiration treatment.

Treatment
unresolved
Rate application
special rate required
Rate class
unresolved
Taxable base
post expiration treatment unresolved
Local interaction
unresolved
Sourcing
standard situs
Evidence required
product identity and post 2026 authority
Effective start
2027-01-01
Effective-window status
future window requires new authority
Runtime boundary
future edition required

Before operational use: obtain and pin post-2026 authority; independent review

State authority research source

dietary supplementspecial

Research observation — independent review required

Vitamins and supplements are exempt from state tax, while an adopted local grocery tax may remain 1 percent.

Treatment
included in base
Rate application
special rate required
Rate class
special
State rate
0%
Taxable base
state exempt dietary supplement local grocery ordinance depends on situs
Local interaction
product specific local
Sourcing
standard situs
Evidence required
supplement identity and local grocery ordinance
Effective start
2026-01-01
Effective-window status
matrix edition start verified local ordinances require windows
Runtime boundary
supplement identity and local grocery resolver required

Before operational use: encode qualifying supplement definition; ingest local grocery ordinance windows; independent review

State authority research source

hygiene productordinary

Research observation — independent review required

Grooming and hygiene products use the high rate rather than the low medicine rate.

Identity or conditions: subtype: grooming or hygiene

Treatment
included in base
Rate application
general rate lookup
Rate class
ordinary
State rate
6.25%
Taxable base
grooming or hygiene product sales price
Local interaction
ordinary local stack
Sourcing
standard situs
Evidence required
product identity and grooming hygiene classification
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
hygiene product definition and local windows required

Before operational use: encode complete grooming and hygiene list; ingest local windows; independent review

State authority research source

manufacturing inputno rate

Research observation — independent review required

Qualifying manufacturing machinery equipment software and production-related tangible property are exempt with ST-587 documentation.

Identity or conditions: qualifying use: manufacturing over 50%; required certificate: ST-587

Treatment
excluded from base
Rate application
no rate
Rate class
no rate
State rate
0%
Local rate
0%
Taxable base
qualifying manufacturing machinery and inputs excluded
Local interaction
no local rate
Sourcing
standard situs
Evidence required
manufacturing use percentage product category and valid ST 587
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
manufacturing use and certificate lineage validation required

Before operational use: encode manufacturing-use and product-scope details; validate certificate lineage; independent review

State authority research source

resaleno rate

Research observation — independent review required

Qualifying resale purchases are nontaxable when active registration or resale status and CRT-61 documentation requirements are met.

Identity or conditions: qualifying use: resale; required certificate: CRT-61

Treatment
excluded from base
Rate application
no rate
Rate class
no rate
State rate
0%
Local rate
0%
Taxable base
qualifying resale purchase excluded
Local interaction
no local rate
Sourcing
standard situs
Evidence required
resale purpose active registration and valid CRT 61
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
resale use registration and certificate lineage validation required

Before operational use: validate registration and certificate lineage; encode first-use boundary; independent review

State authority research source

rentalordinary

Research observation — independent review required

Beginning 2025-01-01, ordinary-course tangible-property lease and rental receipts are generally subject to Illinois sales and use tax.

Identity or conditions: rented product: ordinary tangible personal property

Treatment
included in base
Rate application
general rate lookup
Rate class
ordinary
State rate
6.25%
Taxable base
taxable lease or rental receipts
Local interaction
ordinary local stack
Sourcing
special
Evidence required
rented product registration status term charge components and situs
Effective start
2025-01-01
Effective-window status
lease transition start verified
Runtime boundary
registered property exceptions sourcing and local windows required

Before operational use: encode registered vehicle watercraft aircraft and semitrailer exceptions; ingest local windows; independent review

State authority research source

rentalno rate

Research observation — independent review required

Automobile rentals for one year or less do not incur Illinois sales tax, though separate automobile-rental taxes may apply.

Identity or conditions: maximum rental days: 365; rented product: automobile

Treatment
excluded from base
Rate application
no rate
Rate class
no rate
State rate
0%
Local rate
0%
Taxable base
automobile rental excluded from sales tax
Local interaction
no local rate
Sourcing
standard situs
Evidence required
vehicle identity and rental term
Effective start
2026-01-01
Effective-window status
matrix edition start verified other vehicle taxes apply
Runtime boundary
sales tax exclusion and separate vehicle tax routing required

Before operational use: route separate automobile-rental taxes outside sales tax; pin historical window if required; independent review

State authority research source

prewritten softwareordinary

Research observation — independent review required

Downloaded canned software including mobile applications and games is taxable at the high rate unless a separate license exemption applies.

Identity or conditions: software origin: prewritten; transfer method: electronic; sale context: downloaded or mobile application

Treatment
included in base
Rate application
general rate lookup
Rate class
ordinary
State rate
6.25%
Taxable base
downloaded canned software sales price
Local interaction
ordinary local stack
Sourcing
special
Evidence required
software origin transfer method license and use location
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
software delivery license sourcing and local windows required

Before operational use: encode complete license exemption conditions; ingest local windows; independent review

State authority research source

saasno rate

Research observation — independent review required

Software provided only through cloud access and never downloaded to the client is not subject to sales tax.

Identity or conditions: transfer method: electronic; sale context: cloud only never downloaded

Treatment
excluded from base
Rate application
no rate
Rate class
no rate
State rate
0%
Local rate
0%
Taxable base
cloud only software access excluded
Local interaction
no local rate
Sourcing
standard situs
Evidence required
software never downloaded and cloud only access
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
cloud only and downloaded software boundary required

Before operational use: encode cloud-only evidence and mixed-delivery boundary; independent review

State authority research source

custom softwareno rate

Research observation — independent review required

Qualifying custom software requiring purchaser-needs analysis and real substantial coding changes is nontaxable.

Identity or conditions: software origin: custom; sale context: real and substantial custom coding

Treatment
excluded from base
Rate application
no rate
Rate class
no rate
State rate
0%
Local rate
0%
Taxable base
qualifying custom software excluded
Local interaction
no local rate
Sourcing
standard situs
Evidence required
requirements analysis and real substantial custom coding
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
custom origin and preconfigured module boundary required

Before operational use: encode real-and-substantial customization evidence; independent review

State authority research source

manufacturing inputno rate

Research observation — independent review required

Farm machinery and equipment used more than 50 percent in production agriculture are exempt with ST-587 documentation.

Identity or conditions: qualifying use: production agriculture over 50%; required certificate: ST-587

Treatment
excluded from base
Rate application
no rate
Rate class
no rate
State rate
0%
Local rate
0%
Taxable base
qualifying farm machinery and equipment excluded
Local interaction
no local rate
Sourcing
standard situs
Evidence required
farm equipment identity agricultural use percentage and valid ST 587
Effective start
2026-01-01
Effective-window status
matrix edition start verified
Runtime boundary
agricultural use percentage and certificate lineage required

Before operational use: encode agricultural use percentage and equipment boundary; validate certificate lineage; independent review

State authority research source

05

Working with ST-1

The principal repository-tracked return is ST-1. Paper eligibility is taxpayer-specific; electronic filing or a waiver may control.

How to file Illinois sales tax: 2026 due dates, frequencies, and forms →

Tracked form version
R-01/26 (form/instructions for reporting periods beginning January 2026 and after)
Paper filing posture
taxpayer specific
Account data required
state tax account number, filing frequency
Repository-verified workflow outputs
Worksheet for portal entry
06

Collected by a marketplace does not mean invisible

Facilitator-collected sales are generally excluded from the seller's return when the state's evidence and certification requirements are satisfied.

Seller registration, nexus thresholds, zero-return obligations, facilitator certifications, and direct sales must be evaluated separately. Prophit keeps those facts attached to the return treatment instead of dropping marketplace transactions from the record.

07

Illinois Certificate of Resale

The repository tracks Illinois Certificate of Resale and supports generation from reviewed fields. Certificate validity still depends on the purchaser, seller, claimed use, dates, signatures, and any state-specific acceptance conditions.

Certificates are evidence, not a blanket switch

A certificate should be tied to the correct customer, seller, state, reason, product use, effective period, and transaction population, then monitored for expiration or changed facts.

08

State-specific knowledge, carried into the workflow

Prophit currently structures Illinois transaction data for worksheet for portal entry. Availability is kept separate from customer credentials, state acceptance, and direct transmission authority.

See how Prophit.ai compares to other options in the sales tax software buyer's guide.

Research coverageInventory tracked23 treatment records across 19 product families
Jurisdiction logicEvidence-gatedState, local, sourcing, and special-regime facts require current situs evidence
Workflow outputAvailableWorksheet for portal entry
Direct transmissionAuthority-gatedNot represented by this public guide as authorized or available

Product availability varies by jurisdiction and customer configuration. Workflow support does not by itself establish registration, filing authority, credentials, agency acceptance, or tax advice.

09

Start with the authority

This guide is grounded in the repository's reviewed filing, marketplace, certificate, and tax-authority records. Rules change; confirm the current source and effective period before acting.

Reviewed and current as of August 22, 2026

Illinois county and city sales tax rates

Combined general-merchandise retailers' occupation tax rate for the municipality or unincorporated county area. Business-district and home-rule address-level layers can change the rate at specific addresses; grocery rates differ.

Counties (102)

Cities (1242)

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