Illinois Amazon Sales Tax
Illinois enforces its marketplace facilitator law since January 2020. Amazon collects Illinois tax, and the state hosts major Amazon fulfillment centers.
Overview
Illinois' marketplace facilitator law took effect January 1, 2020. The state base rate is 6.25%, with local jurisdictions adding on top — combined rates run from 6.25% up to about 11%, with Chicago around 10.25%. Amazon collects and remits the applicable Illinois Retailers' Occupation Tax on orders it facilitates into the state.
Illinois is a major Amazon fulfillment-center state, with numerous facilities (in places such as Joliet, Monee, Aurora, Romeoville, and Edwardsville), which historically created physical nexus for inventory stored there. Effective January 1, 2026, Illinois removed the 200-transaction prong, so the remote-seller and marketplace-facilitator economic nexus standard is now a $100,000 cumulative gross-receipts threshold only.
For Amazon-only sellers, Amazon's collection covers Illinois marketplace orders, so there is no separate ongoing registration obligation tied solely to those sales. Sellers with direct (non-Amazon) Illinois sales should evaluate the $100,000 threshold and consult a tax professional for destination-sourcing and edge-case questions.
What FBA sellers still need to know
No registration for ongoing Amazon-only sales. Direct/non-Amazon sellers with $100,000 or more in cumulative gross receipts from Illinois sales (the 200-transaction prong was removed effective January 1, 2026) must register and remit.
This content is educational and not legal or tax advice. Sales tax law changes frequently and is jurisdiction-specific. Always verify with a qualified tax professional and the state revenue department before making compliance decisions.
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