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Illinois: Home Rule Sales Tax


 Chicago, a home rule unit.

In Illinois Department of Revenue.

FAQs

Home rule sales tax can only be imposed in 1/4% increments. There is no maximum tax rate.

Any locality that imposes home rule sales tax must also impose home rule municipal or county service occupation tax and municipal home rule use tax. Home rule localities may also impose (and administer and collect) tax on the following:

  • Alcohol
  • Hotels
  • Lease receipts
  • Real estate transfers
  • Restaurants
  • Tobacco products
  • Utilities

Home rule sales tax does not apply to the following:

  • Tangible personal property, such as boats, motor vehicles, and snowmobiles, that is titled or registered with an agency of Illinois state government.
  • Food for human consumption (not including alcoholic beverages, soft drinks, and food prepared for immediate consumption) that will be consumed “off the premises where it is sold.”
  • Prescription and non-prescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics.

For all localities except Chicago, home rule use tax is administered by local governments. The Illinois Department of Revenue kindly provides a list of home rule and non-home rule units, along with sales tax rates effective January 1, 2015. Additional information.

Simplify sales tax management for Illinois and other states by implementing automated sales tax Software-as-a-Service (SaaS). Learn how it works.

photo credit: Ricardo Williams Photography via photopin cc


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.