What are the sales and use tax rates in Illinois? – Questions and Answers

illinois tax rate

The Home Rule Tax is a portion of the total sales tax rate. By City ordinance, 45% of the receipts are to be used for the City’s Capital Improvement Plan . The remaining receipts may be utilized for the operation of the City, with a priority towards maintaining the City’s infrastructure.3. The Village receives a total of 1 percentage point of the sales tax rate on groceries and drugs sold in Cook County and Lake County. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns. Illinois sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.

In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state. If you have more than one location in Illinois, then you would base the sales tax rate you charge on the point of origin of your sale. Filing Your Return – To file your sales tax return with the State of Illinois, you can use the My Tax Illinois website or you can file the form ST-1 via mail. The above rates apply to general merchandise, which includes most tangible property, with the exception of qualifying food, drugs, and medical appliances, and any items that require a title or registration. Once you’ve found the correct sales tax rate for your area, you need to figure out how much to charge each customer on their purchases.

State Sales Tax Breadth and Reliance, Fiscal Year 2021

Schedule GT was specially created for retailers to report sales of qualifying items sold during the sales tax holiday. This schedule should be filed with your Form ST-1, Sales and Use Tax, and E911 Surcharge Return. However, retailers should continue to report their normal taxable sales including sales of the qualifying items. Ideas Illinois is an opponent of the graduated income tax proposal and commissioned the poll as part of its inquiry into the effectiveness of its campaigning against the proposal. Proponents argued that the proposal would make the Illinois tax code fairer, provide tax relief to most Illinoisans, better fund public goods and social services, and boost small businesses. Opponents argued it would open the door to future tax hikes, hurt businesses, drive businesses and wealthy residents to neighboring states, and place more revenues in the hands of an untrustworthy state government.

illinois tax rate

Pritzker won the election, and Democrats controlled both chambers of the Illinois legislature. On January 28, 2019, Senator Don Harmon introduced a joint resolution that would propose a constitutional amendment allowing the Illinois government to change from a flat tax rate to a graduated rate. The resolution was approved in the Senate by a 36–22 vote on May 1 and by the House by a 73–44 vote on May 27. The resolution received two votes more than the 71 votes needed to pass in the House, in what the Chicago Tribune called a “historic vote”. The passage of the resolution placed the proposed amendment on the ballot in the next general election on November 3, 2020.

Sales tax returns made easy for small businesses

Food, drugs and medical appliances are all subject to a statewide tax rate of 1% of purchase price, in addition to local taxes of up to 1.25%, for a total tax of up to 2.25%. There are some food items that don’t count as a qualifying food. For example, candy and soda are generally subject to the higher “general merchandise” rate, but any candy containing flour is not, for sales tax purposes, classified as candy. As simple as Illinois tries to make income tax, the state seems to take the opposite approach with sales taxes. There are three rate structures depending on what you are buying.

  • Always consult your local government tax offices for the latest official city, county, and state tax rates.
  • The statewide median property tax rate in Illinois is the second-highest in the nation.
  • That’s why we came up with this handy Illinois sales tax calculator.
  • The public union-backed change to the Illinois Constitution would protect union power and prevent it from ever being diminished without another statewide vote.
  • Food and drugs are taxed at the reduced rate of one percent.

Simply download the lookup tool and enter your state, in this case Illinois. Add your county or city – and the tool will do the rest. Or, when done editing or signing, create a free DocuClix account – click the green Sign Up button – and store your PDF files securely. Or, click the blue Download/Share illinois income tax rate button to either download or share the PDF via DocuX. XThe accessibility of our website is taken very seriously. We strive to meet WCAG 2.1 AA Web Accessibility standards by routinely evaluating our website using automated evaluation tools and manual testing when required.

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