Beginning January 1, 2026, Illinois will eliminate the 200-transaction threshold for establishing economic nexus for sales tax purposes. Going forward, both remote retailers and marketplace facilitators will be subject to economic nexus rules based solely on whether their cumulative gross receipts from sales to Illinois purchasers exceed $100,000 over the previous 12 months. Remote retailers must assess their sales on a quarterly basis to determine if they meet or exceed this threshold.
Also taking effect on January 1, 2026, Illinois will expand its “Leveling the Playing Field” provisions to include the Service Occupation Tax (SOT) and the Service Use Tax (SUT), requiring collection of both state and local taxes for services provided from outside Illinois to an Illinois customer. Previously, only the state’s 6.25% tax was collected on such transactions.
To find out more information, please see Public Act 104-0006, which was enacted on June 16, 2025.
