Illinois economic nexus threshold for sales tax
Data version 2026-Q3 · reviewed 2026-07-14
If you sell into Illinois without a physical presence, you may still be required to register for, collect, and remit sales tax once your sales cross the state's economic nexus threshold. Here is where Illinois stands.
Illinois threshold at a glance
| Revenue threshold | $100,000 |
|---|---|
| Transaction threshold | None |
| How they combine | Revenue only |
| Measurement period | Preceding 12-month period |
| State sales-tax rate | 6.25% |
What this means for remote sellers
Illinois uses a revenue-only economic nexus threshold. You establish nexus once your gross sales into Illinois reach $100,000 during preceding 12-month period. The number of separate transactions does not affect the threshold.
How Illinois compares to other states
Illinois's $100,000 revenue threshold is the most common in the country — 42 jurisdictions use it. It is one of 29 jurisdictions that look at revenue only — the number of transactions does not count. Illinois has joined the recent trend of states dropping the separate transaction-count test. Its 6.25% base sales-tax rate sits above the roughly 5.7% average state rate.
How the Illinois threshold is measured
Illinois measures the threshold over Preceding 12-month period. Gross sales generally include taxable and (in many states) exempt sales; rules on marketplace-facilitated sales vary. Verify the specifics with the Illinois department of revenue.
Do marketplaces collect Illinois sales tax?
Illinois requires marketplace facilitators — platforms such as Amazon, Etsy, eBay, and Walmart — to collect and remit Illinois sales tax on sales made through them. If you sell only through those marketplaces, the platform generally collects the tax for you. Sales you make directly — through your own website or store — still count toward your Illinois economic nexus threshold and remain your responsibility. Whether marketplace-facilitated sales also count toward your own threshold varies, so confirm with the Illinois Department of Revenue.
What to do if you've crossed it
- Register with the Illinois Department of Revenue for a sales-tax permit.
- Begin collecting tax on taxable sales to Illinois customers.
- File and remit on the schedule the state assigns.
- Confirm treatment of marketplace sales and any local taxes with a professional.
Not sure where you stand?
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Tools to get compliant
Triggered nexus somewhere? These tools handle registration, collection, filing, and remittance so you don't have to.
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Illinois economic nexus FAQ
What is the economic nexus threshold in Illinois?
Illinois uses a revenue-only economic nexus threshold. You establish nexus once your gross sales into Illinois reach $100,000 during preceding 12-month period. The number of separate transactions does not affect the threshold.
Do remote sellers have to collect Illinois sales tax?
If your sales into Illinois cross the threshold ($100,000) during preceding 12-month period, you generally must register, collect, and remit Illinois sales tax.
Does Illinois count the number of transactions?
No. Illinois measures only revenue ($100,000); the number of transactions does not matter.
When did Illinois's economic nexus rules take effect?
Illinois began enforcing economic nexus on October 1, 2018. Economic nexus stems from the 2018 South Dakota v. Wayfair Supreme Court decision; states phased in their rules afterward. Note: 200-transaction threshold repealed effective January 1, 2026 — only the $100,000 receipts threshold applies. Retailers' Occupation Tax sourcing rules apply for remote sellers.
What is the sales tax rate in Illinois?
Illinois's statewide base sales-tax rate is 6.25%. Local jurisdictions may add their own tax, so the total rate at a given address is often higher. Once you establish nexus, you collect at the combined state and local rate for the destination.
Do marketplaces like Amazon collect Illinois sales tax?
Yes. Illinois requires marketplace facilitators — platforms such as Amazon, Etsy, eBay, and Walmart — to collect and remit sales tax on sales made through them. Sales you make directly, through your own website or store, still count toward your Illinois economic nexus threshold.
How do I register for a Illinois sales tax permit?
Register with the Illinois Department of Revenue. You will need your business information and the date you first crossed the threshold. After registering, the state will assign a filing frequency based on your sales volume.
Related states
Informational only — not legal or tax advice. Verify with the Illinois department of revenue and a qualified professional.