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Retailer Resources and Highlights
Leased or Rented Tangible Personal Property
Effective January 1, 2025, if you lease or rent tangible personal property in the ordinary course of your business, you are considered a retailer subject to Illinois’ Sales and Use Tax laws, and you must register with the Illinois Department of Revenue (IDOR) and pay tax on your lease or rental receipts. For additional Information see FY 2025-15, Illinois Sales and Use Tax Applies to Leased or Rented Tangible Personal Property and FY 2025-17, Reporting Requirements for Certain Titled or Registered Property Subject to Tax on Lease or Rental Receipts.
Retailers’ Discount
For sales and use tax and other related returns due on or after January 1, 2025, the retailers’ discount amount is limited to $1,000 per month.
For certain transaction returns due on or after January 1, 2025 (for vehicles with a delivery date on or after December 12, 2024), the retailers’ allowance (discount) amount is limited to $1,000 per month.
For additional information see FY 2025-04, Retailers’ Discount for Certain Tax Returns Capped at $1,000 Per Month and FY 2025-11, Retailers’ Allowance for Certain Transaction Returns Capped at $1,000 Per Month.
Leveling the Playing Field
Public Acts 101-31 and 101-604 amended the Retailers’ Occupation Tax and enacted the Leveling the Playing Field for Illinois Retail Act to implement a series of structural changes to Illinois’s sales tax laws. The changes are designed to level the playing field between Illinois-based retailers and remote retailers by imposing state and local retailers’ occupation taxes on Illinois retailers and remote retailers alike.
For more information, visit our Leveling the Playing Field resource page.
Upcoming Changes to the Sales Tax on Groceries
The Grocery Tax Suspension period concluded on June 30, 2023. Effective January 1, 2026, Public Act (P.A.) 103-0781 will eliminate the State of Illinois one-percent (1%) low rate of sales and use tax on retail sales of groceries normally taxed at this rate.
IDOR will issue additional guidance regarding the grocery tax elimination.