Collect tax in Illinois

In Illinois, Stripe Tax supports calculation and collection of sales tax.

When to register for tax collection

See Thresholds to get insights about your potential tax registration obligations in Illinois. Stripe also notifies you with email and Dashboard alerts when you need to register to collect tax. Learn more about how the monitoring tool works.

Sales tax

Remote sellers must register to collect and remit tax in Illinois when, in the last four quarters, they meet or exceed one of the following:

• A sales threshold of 100,000 USD
• A volume threshold of 200 transactions

The thresholds include sales of tangible personal property, whether taxable or nontaxable. The thresholds exclude sales of services, wholesale sales (sales of resale), and marketplace sales.

Other taxes

We also support:

• Bloomington Amusement tax—for businesses selling video or audio streaming on a pay-per-use, rental, or subscription basis to customers in Bloomington.
• Chicago Lease Tax (Personal Property Lease Transaction Tax)—for businesses selling $100,000 or over of software as a service or other leased products into Chicago.
• Chicago Amusement tax—for businesses selling $100,000 or more of digital entertainment into Chicago, including selling video or audio streaming and online gaming.
• East Dundee Amusement tax—for businesses selling video or audio streaming, or remotely-accessed online games on a pay-per-use, rental, or subscription basis to customers in East Dundee.
• Evanston Amusement tax—for businesses selling video or audio streaming, or remotely-accessed online games on a pay-per-use, rental, or subscription basis to customers in Evanston.
• Lynwood Amusement tax—for businesses selling video or audio streaming, or remotely-accessed online games on a pay-per-use, rental, or subscription basis to customers in Lynwood.
• River Grove Amusement tax—for businesses selling video or audio streaming, or remotely-accessed online games on a pay-per-use, rental, or subscription basis to customers in River Grove.
• Schiller Park Streaming Surcharge—for businesses selling video or audio streaming, or remotely-accessed online games on a pay-per-use, rental, or subscription basis that are delivered to customers in Schiller Park.

Thresholds

• Chicago Lease and Chicago Amusement tax apply to businesses selling specific goods to customers in Chicago, even if you don’t have a physical presence there.
• Bloomington, East Dundee, Evanston, Lynwood, River Grove, and Schiller Park amusement taxes only apply when there’s a physical presence in those locations.

Transactions for these taxes aren’t included in tax threshold monitoring for Illinois.

Register to collect tax

Register for sales tax in Illinois at the tax authority or the other taxes we support at the links above. Read more about registering for sales tax in the US in our guide. You can also use Stripe to register on your behalf.

After you’ve registered to collect tax in Illinois, go to Registrations to add your registrations to Stripe in the Dashboard. This turns on tax calculation and collection in Stripe for your transactions in Illinois.

Learn how to add your registration in the Dashboard.

How we calculate taxes

If your origin address is in the US and differs from your customer’s state, Stripe always calculates tax based on your customer’s location.

If your customer is in Illinois and your origin address is also in Illinois, Stripe applies tax based on your origin address, depending on the type of product or service you sell.

Stripe still applies tax based on your origin address, if the following are all true:

• Your customer is in Illinois
• Your origin address is in Illinois
• Your goods ship from a location outside Illinois

Even if the origin address in Illinois doesn’t perform selling activities, as defined by Illinois tax law, Stripe can’t determine the activities performed at each address. This means Stripe defaults to the Illinois address as participating in the sale.

Report and file your taxes

Stripe provides reports of your completed tax transactions. Go to Registrations to access these reports.

Exports

The tax transaction data export provides a comprehensive and aggregated view of transactions by location, including a breakdown of individual tax amounts. Learn more about tax reporting exports.

Location reports

Location reports offer a summary of transaction and refund data for specific US locations and align with Illinois filing requirements. You have the option to report on an annual, quarterly, or monthly basis.

Reporting-specific considerations:

• The location reports don’t include transactions with Bloomington Amusement tax, Chicago Lease Tax, Chicago Amusement tax, East Dundee Amusement tax, Evanston Amusement tax, Lynwood Amusement tax, River Grove Amusement tax, or Schiller Park Streaming Surcharge as these are filed to the local jurisdiction using a different report. To see transactions with these taxes, you can use the exports.

Filing

Stripe Tax has filing partners—Taxually, Marosa, and Hands-off Sales Tax (HOST)—to help automate your tax filing. These partners automatically sync your tax transaction data in real time, eliminating the need for manual data entry or file transfers. Learn more about tax filing.