Collect tax in Illinois

In Illinois, Stripe Tax supports calculation and collection of sales tax (including seller use tax) and additional tax types.

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 sales 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.

If your Origin address in the tax settings page of the Dashboard is in Illinois, you’re not a remote seller and you must register due to your physical presence in the state.

Other taxes

We also support calculation and collection for:

• Chicago Lease Tax (Personal Property Lease Transaction Tax) if you sell 100,000 USD or more of software as a service or other leased products into Chicago.
• Amusement Taxes, Admissions Taxes and Attendance Taxes in many Illinois local jurisdictions. These taxes apply to participant and spectator based entertainment or recreational activities. Some cities apply these taxes to digital entertainment, such as content streaming and online gaming.

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.
• Other 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.

Read our guide to navigate sales tax registration for help. You can also use Stripe to register on your behalf.

After registering, add your registration in the Stripe Dashboard to start collecting tax on your transactions in Illinois. You must add registrations for types other than sales tax, such as the Bloomington Amusement Tax, as separate registrations in Stripe.

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.