Effective July 1, 2024 certain taxing jurisdictions in Illinois have imposed a local sales tax or changed their local sales tax rate on general merchandise sales. The following taxes are affected:

• Business district sales tax
• County public safety, public facilities, mental health, substance abuse, or transportation sales tax
• Home rule municipal sales tax
• Non-home rule municipal sales tax

To be in compliance with the new tax rates, you must adjust your point of sale and/or accounting system to ensure that you will collect and pay the correct sales tax effective July 1, 2024. You may need to contact your software vendor to confirm that they will correct their systems to the appropriate tax rate. Remember that even if you under-collect tax, the tax is still due. That means it will be your responsibility to pay the difference.

To verify your new combined sales tax rate (state and local tax) use the Tax Rate Finder at mytax.illinois.gov and select rates for July 2024.

Who is impacted?

The sales tax rate change will affect anyone collecting sales tax in some cities in Cook County, DuPage County, Kane County, Madison County, McHenry County, Stephenson County and other jurisdictions. To see a full list of all the cities impacted and the new rates, please click here.

What is taxed?

These rate changes do not impact what is and is not subject to sales tax. As a reminder, most sales are subject to both the state sales tax and the locally imposed sales tax.

Note that some jurisdictions may impose and administer taxes not collected by the Illinois Department of Revenue. Contact your municipal or county clerk’s office for more information.

If you have any questions regarding the sales tax rate change, please don’t hesitate to contact Cray Kaiser today or call us at (630) 953-4900.