What is the state of Illinois sales tax rate?

Illinois is known for its bustling cities, charming small towns, and rich history. One aspect of living or doing business in Illinois that is important to understand is the state’s sales tax rate. This tax rate can impact everything from the cost of everyday purchases to the success of businesses operating within the state. So, what is the state of Illinois sales tax rate?

The state of Illinois sales tax rate

**The state of Illinois sales tax rate is 6.25%. This rate applies to most retail sales of tangible personal property, as well as some services.**

FAQs

1. What items are subject to the Illinois sales tax rate?

Most retail sales of tangible personal property are subject to the Illinois sales tax rate. Some services are also taxable at this rate.

2. Are grocery items subject to the Illinois sales tax rate?

In Illinois, most food items that are considered necessities, such as fruits, vegetables, and meats, are not subject to the state sales tax rate.

3. Are there any exceptions to the Illinois sales tax rate?

Yes, there are some exceptions to the Illinois sales tax rate. For example, sales of prescription drugs, certain medical appliances, and certain non-prescription medications are exempt from the state sales tax.

4. What is the local sales tax rate in Illinois?

In addition to the state sales tax rate of 6.25%, there are local sales taxes that vary by city and county in Illinois. These local rates can range from 1% to 4.75%.

5. Are online purchases subject to the Illinois sales tax rate?

Yes, online purchases made by Illinois residents are subject to the state sales tax rate. This includes purchases made from out-of-state retailers who are required to collect sales tax.

6. Are services subject to the Illinois sales tax rate?

Some services are subject to the Illinois sales tax rate, such as certain repair and maintenance services, landscaping services, and dry-cleaning services.

7. Are sales made to businesses subject to the Illinois sales tax rate?

Yes, sales made to businesses are generally subject to the Illinois sales tax rate. However, there are exemptions for certain purchases made by businesses.

8. Are there any sales tax holidays in Illinois?

Illinois does not currently have any sales tax holidays where certain items are exempt from the state sales tax rate for a limited period of time.

9. Can I get a refund on sales tax in Illinois?

If you believe you were incorrectly charged sales tax in Illinois, you can request a refund from the retailer who collected the tax. You will need to provide proof of the overpayment.

10. How does the Illinois sales tax rate compare to other states?

The Illinois sales tax rate of 6.25% is relatively average compared to other states. Some states have higher rates, while others have lower rates.

11. Are there any proposed changes to the Illinois sales tax rate?

There are occasionally proposals to change the Illinois sales tax rate, either by increasing or decreasing it. These proposals are typically debated by lawmakers before any changes are made.

12. How is the Illinois sales tax rate used by the state?

The revenue generated from the Illinois sales tax rate is used to fund various state programs and services, such as education, infrastructure, and public safety.

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