Illinois Sales Tax: What You Need to Know

All counties in Illinois have the same state sales tax rate, which is 6.25%. However, regional county and municipal taxes can also be applicable, which could raise the overall sales tax rate in some places. The state has also modified the categories of products and services that are chargeable with sales tax.

Has the sales tax in Illinois increased?

No, Illinois’ state sales tax has not recently increased. It is crucial to examine the current tax rate for your particular location because local taxes may have changed in some places. What Services in Illinois Are Taxable?

The majority of services are not taxable in Illinois. There are a few exceptions, though. For instance, some upkeep and repair work on tangible personal property is tax deductible. Printing, certain telecommunications services, laundry and dry cleaning services, and other services are also taxable.

In Illinois, clothing is typically exempt from sales tax. There are a few exceptions to this rule, though. For instance, “accessories” for clothing are subject to taxation. This includes accessories like belts, bags, and jewelry. Additionally, certain apparel goods made for physical activity, including sports uniforms, are taxed.

In Illinois, most of the time, shipping costs are exempt from sales tax. There are a few exceptions, though. The entire amount is taxed if the shipping costs are included in the sales price of the item being shipped. The transportation costs can also be subject to tax if the seller offers installation, assembly, or other comparable services along with the sale.

Illinois does permit the carrying forward of net operating losses (NOL) for a maximum of 12 years. The state does not, however, permit NOL carrybacks. There are also some restrictions on how much NOL can be written off in a given year.

In conclusion, the sales tax in Illinois has not recently increased, but it is still crucial to confirm the current tax rate in your particular area. In Illinois, the majority of services are not subject to sales tax, and clothing is typically excluded. There are some instances where shipping costs are liable to sales tax. Last but not least, Illinois permits NOL carryforwards but not carrybacks.