Sales Tax

Cost Saving Tax Climate For Your Business

Illinois State Capital
Illinois ranks 29th in the latest Tax Foundation's State Business Tax Climate Index, which measures the impact on business of five major elements of the tax system: the percentage of income taken by all taxes, the individual income tax rates, the corporate income taxes, the sales tax rate, and the complexity of the tax system. Illinois has a MORE ATTRACTIVE TAX CLIMATE FOR BUSINESS than neighboring states like Ohio, Wisconsin, Iowa and Minnesota, and Kentucky. In fact, Illinois’s tax rank is BETTER FOR BUSINESS than many of the southern states as well, including: Georgia, Alabama, Virginia, Louisiana, Arkansas, and Oklahoma. Over the past 20 years, Illinois’ tax burden has consistently ranked below the national average.
Tax Foundation Report on State Business Tax Climates.

Personal Income Taxes
Income earned in Illinois or received by Illinois residents is taxed at 4.95 percent. Partnerships and S-Corporations pay a 1.5 percent personal property replacement tax and S-corporations’ owners pay the 3 percent personal income tax on their share of the corporation’s income.

  • There are no local personal income taxes in Illinois.
  • Retirement income is not taxed in Illinois.

Corporate Income Taxes
Corporate income apportioned to Illinois is taxed at 9.5 percent, which includes a 7 percent state income tax and a 2.5 percent personal property replacement tax (S-corporations pay 1.5 percent) A unitary group of corporations files a combined return in Illinois.

  • Income apportionment is based solely on In State Sales
  • Corporations with more than 80 percent of their payroll and property outside the United States are NOT included in combined returns. Corporations with unique apportionment formulas are not included in combined returns.
  • Credits include a 0.5 percent credit for investment in mining, manufacturing or retailing, plus an additional 0.5 percent if employment increases over 1 percent. Other incentives may also be available depending on location, business and employment.
  • Interest on Loans to Enterprise Zone businesses are deductible.
  • There are NO local corporate income taxes in Illinois. 

Sales and Use Taxes
Retail purchases of tangible personal property are subject to a state sales tax or use tax rate of 6.25 percent.
Which Cities have Sales Tax – and the Local Tax – City tax plus State = Total

 

Sales Taxes

(retailers' and service occupation taxes)

Use Taxes

(use and service use taxes)

Automobile Renting Taxes

Telecommunication Taxes

City
General Merchandise
Qualifying Food & Drug
Vehicle*
General Merchandise
Qualifying Food and Drugs
Vehicle (RUT-25) and RUT-25-LSE
Automobile Renting Tax (occupation)
Automobile Renting Tax (use)
Telecommunication Taxes

LaSalle

7.500%

1.000%

6.250%

6.250%

1.000%

6.250%

6.000%

5.000%

13.000%

Peru

7.500%

1.000%

6.250%

6.250%

1.000%

6.250%

5.000%

5.000%

11.000%

Streator

7.500%

1.000%

6.250%

6.250%

1.000%

6.250%

6.000%

5.000%

10.000%

Ottawa

7.00%

1.000%

6.250%

6.250%

1.000%

6.250%

5.000%

5.000%

12.000%

Princeton

7.250%

1.000%

6.250%

6.250%

1.000%

6.250%

5.000%

5.000%

13.000%

Mendota

6.500%

1.000%

6.250%

6.250%

1.000%

6.250%

6.000%

5.000%

13.000%

Oglesby

7.000%

1.000%

6.250%

6.250%

1.000%

6.250%

5.000%

5.000%

13.000%

North Utica

6.500%

1.000%

6.250%

6.250%

1.000%

6.250%

5.000%

5.000%

12.000%

Spring Valley

7.250%

1.000%

6.250%

6.250%

1.000%

6.250%

6.000%

5.000%

9.000%

Ladd

6.750%

1.000%

6.250%

6.250%

1.000%

6.250%

6.000%

5.000%

7.000%

Hennepin

6.250%

1.000%

6.250%

6.250%

1.000%

6.250%

5.000%

5.000%

7.000%

Sales Tax

City
General Merchandise
Qualifying Food & Drug
Vehicle*
LaSalle 7.000%  1.000%  6.250%
Peru 7.500%  1.000%  6.250%
Streator 7.500%   1.000%  6.250%
Ottawa 7.00%  1.000%  6.250%
Princeton 7.250%  1.000%  6.250%
Mendota 6.500%  1.000%  6.250%
Oglesby 7.000%  1.000%  6.250%
North Utica 6.500%  1.000%  6.250%
Spring Valley 6.750%  1.000%  6.250%
Ladd 6.750%  1.000%  6.250%
Hennepin  6.250%  1.000%  6.250%

Use Tax

City
General Merchandise
Qualifying Food & Drug
Vehicle*
LaSalle 7.000%  1.000%  6.250%
Peru 7.500%  1.000%  6.250%
Streator 7.500%   1.000%  6.250%
Ottawa 7.00%  1.000%  6.250%
Princeton 7.250%  1.000%  6.250%
Mendota 6.500%  1.000%  6.250%
Oglesby 7.000%  1.000%  6.250%
North Utica 6.500%  1.000%  6.250%
Spring Valley 6.750%  1.000%  6.250%
Ladd 6.750%  1.000%  6.250%
Hennepin  6.250%  1.000%  6.250%

Automobile Renting Taxes

City
Automobile Renting Tax (occupation)
Automobile Renting Tax (use)
LaSalle 6.000% 5.000%
Peru 5.000% 5.000%
Streator 6.000% 5.000%
Ottawa 5.000% 5.000%
Princeton 5.000% 5.000%
Mendota 6.000% 5.000%
Oglesby 5.000% 5.000%
North Utica 5.000% 5.000%
Spring Valley 6.000% 5.000%
Ladd 6.000% 5.000%
Hennepin 5.000% 5.000%

Telecommunication Taxes

City
Rate
LaSalle 13.000%
Peru 11.000%
Streator 10.000%
Ottawa 12.000%
Princeton 13.000%
Mendota 13.000%
Oglesby 13.000%
North Utica 12.000%
Spring Valley 9.000%
Ladd 7.000%
Hennepin 7.000%

*If the vehicle or trailer is titled and registered to an out-of-state location, you (the dealer) may be required to collect tax. Refer to ST-58, Reciprocal - Non-Reciprocal Vehicle Tax Rate Chart.

Local sales tax rates vary.

  • EXEMPTIONS - Illinois has a number of sales and use tax exemptions: manufacturing machinery, as well as replacement parts and computers used to control manufacturing machinery; farm machinery; building materials bought in and used in an Illinois Enterprise Zone; and materials consumed in the manufacturing process in Illinois Enterprise Zones (certain job creation criteria apply.)
  • Food and drugs are taxed at the reduced rate of one percent.

Sales and Use Tax Rate

Gasoline

38.8 cents per gallon

 

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