Illinois made significant changes to its sales tax requirements for out-of-state resellers beginning January 1, 2026.
Prior to this change, remote retailers and marketplace facilitators were required to collect and remit sales tax if they had gross receipts of $100,000 or more OR 200 separate transactions for the sale of tangible personal property into Illinois in a 12 month period.
Beginning January 1, 2026, Illinois removed the 200 transaction for requiring remote retailers and marketplace facilitators to collect and remit sales tax. In other words, any remote retailer or marketplace facilitator who has $100,000 or more of sales into Illinois is required to collect and remit sales tax to Illinois, regardless of the number of sales to Illinois locations.
A remote retailer who previously had more than 200 transactions into Illinois but less than $100,000 in gross revenue is no longer required to collect and remit Illinois sales tax.
Each state has different statutes and regulations regarding sales tax, which change frequently. If you sell any products (or services) outside of your state of incorporation or organization, it is important to be aware of these sales tax requirements. You may be required to collect sales tax in states where you are not currently doing so.
