States / Illinois

Illinois

Last checked Oct 22, 2026

Illinois practitioners use one main login for state tax and payroll work: MyTax Illinois, which the Department of Revenue and the Department of Employment Security (IDES) share. Both agencies run on FAST Enterprises' GenTax. Revenue picked FAST in September 2006 from four bidders for a $45 million, five-year modernization; employer unemployment insurance tax moved onto MyTax Illinois on 9/11/2017. The state now buys GenTax licensing, maintenance and enhancements through sole source contracts: $64.8 million for 2020 to 2024 and $146.5 million for 2025 to 2029, split among Revenue, IDES and the Liquor Control Commission. Unemployment benefits run on a separate IDES system, IBIS, live since August 2010, whose builder was not found. During the pandemic IDES paid Deloitte to build uFACTS, the Pandemic Unemployment Assistance system, under a no-bid emergency contract that grew from $9.49 million to $33.8 million. Business filings are with the Secretary of State and new hire reports go to IDES's New Hire Directory. Illinois has no state paid family and medical leave insurance program; its Paid Leave for All Workers Act is a benefit employers provide, with no state filing.

Who administers what

Every fact links to its source and carries a label: Public record Vendor claim Press / secondary

What the state has spent

Contract totals are the approved ceilings or current contract values the sources state, not money paid, and they are added up only where a plain contract figure exists. The yearly average spreads each system's payments over the years they cover (marked p), or, where no payment data was found, its contract total over the contract term (marked c); systems with neither are left out; it is an estimate of the yearly cost, not a reported figure. Payments to date and project budgets or estimates are added up in their own tiles, from the figures shown in the table; the three kinds of figure overlap and are never added together. Follow each system below for its sources.

Portals practitioners use

Leadership and contacts

Checked Oct 30, 2026. People change roles often; confirm on the agency's site before relying on a name.

Chain of command

• Voters
  • Governor: JB Pritzker
    • Director of Revenue: David Harris Illinois Department of Revenue
    • Director of Employment Security: Ray Marchiori Illinois Department of Employment Security
  • Secretary of State: Alexi Giannoulias Illinois Secretary of State

Employer account numbers

Checked Oct 24, 2026.

Two agencies, one portal: the Illinois Department of Revenue (IDOR) handles income tax withholding, reported on Form IL-941 under the employer's FEIN, and the Illinois Department of Employment Security (IDES) handles unemployment insurance under a 7-digit IDES account number. Both are registered and filed through MyTax Illinois. No state paid family leave or disability insurance program with an employer account was found.

Layout: 9 is a digit, A is a letter, other characters are shown as the agency writes them. No real account numbers appear on this site.

Employer tax ID numbers for every state researched

Unemployment insurance tax

Checked Nov 3, 2026. Illinois Department of Employment Security (IDES)

Illinois's taxable wage base is $14,592 for 2027, set in statute (820 ILCS 405/235), up from $14,250 in 2026. For 2026 the standard new employer rate is 3.350% (3.450% for NAICS sector 56), and experience rates run from 0.750% to 7.050%, each including a 0.550% fund building rate; IDES had not posted its 2027 rate publication (EA-50) by 2026-11-03. Public Act 104-839, effective January 1, 2027, moves a scheduled 0.350% surcharge and a 20-point increase in the state experience factor from 2027 to 2029.

Taxable wage base

2027: $14,592
2026: $14,250
Not indexed. 820 ILCS 405/235 sets a dollar amount for each year: $13,271 for 2023, $13,590 for 2024, $13,916 for 2025, $14,250 for 2026, and $14,592 for 2027 "and each calendar year thereafter". source Public record

New employer rate

2026: 3.35% IDES: most employers liable on or after January 1, 2024 pay the entry rate of 3.350%; new employers in Administrative Support and Waste Management (NAICS sector 56) pay 3.450%. The entry rate includes the 0.550% fund building rate. The 2027 entry rate was not yet published. source Public record

Rate range

2026: 0.75% to 7.05%, State experience factor 102% (114% in 2025) Both limits include the 0.550% fund building rate. An experience-rated employer whose rate is above 5.400% and whose quarterly wages are under $50,000 pays 5.400% for that quarter.
2025: 0.75% to 7.85%, State experience factor 114% From IDES's Historical Rate Chart; rates include the fund building rate. source Public record

Other assessments

• Fund building rate: 0.550% of taxable wages (2026), included in every contribution rate, entry rate and the minimum and maximum; the statute keeps it between 0.4% and 0.55% after 2009 (2026) source Public record
• Surcharge under 820 ILCS 405/1506.6: 0.350% added to the contribution rate; the current text applies it to calendar year 2027, and P.A. 104-839 (effective January 1, 2027) changes that to 2029 (2027) source Public record

Rate notices

Not stated. 820 ILCS 405/1509 says the Director shall promptly notify each employer of the rate for each calendar year by mail; IDES's 2026 rate publication (EA-50) is dated November 2025.. Protest: Within 15 days after the rate notice is mailed, by filing an application for review with the Director (820 ILCS 405/1509). source Public record

Filing

UI-3/40, Employer's Contribution and Wage Report (quarterly); employers also file a monthly wage report
Due: April 30, July 31, October 31 and January 31
Electronic filing: Required for employers with 25 or more employees during the prior calendar year (56 Ill. Adm. Code 2760.140); approved methods are MyTax Illinois, the Fed/State Employment Taxes program and FTP. Paper UI-3/40 only for employers with fewer than 25 employees.
MyTax Illinois source Public record

FUTA credit reduction

None. No outstanding federal advance: the Treasury's Title XII table for November 2, 2026 lists only California and Texas. Illinois's last credit reduction was 0.3% for 2022 (also 0.3% for 2011); none for 2023 to 2025, and Illinois is not on DOL's potential 2026 list. source Public record

Recent and coming changes

• Jan 1, 2027 Taxable wage base rises to $14,592 for 2027 and later years (P.A. 102-1105). source Public record
• Jan 1, 2027 P.A. 104-839 moves the 0.350% surcharge of Section 1506.6 from calendar year 2027 to 2029. source Public record
• Jan 1, 2027 P.A. 104-839 moves the 20% absolute increase in the adjusted state experience factor (Section 1505, subsection D-3) from calendar year 2027 to 2029. source Public record

Rates in Illinois are quoted with the fund building rate already included. The 2027 entry rate, minimum, maximum and state experience factor come in the 2027 EA-50, not yet posted on 2026-11-03 (the 2026 edition is dated 11/2025). Statute text is from the General Assembly's public file repository (ftp.ilga.gov), because ilga.gov blocks automated requests.

Not confirmed: 2027 new employer rate, minimum and maximum rates and state experience factor: the 2027 EA-50 was not posted (EA-50_2027.pdf returned 404 on 2026-11-03). Voluntary contributions: no provision found in Sections 1500 to 1510 of the Act or on the IDES pages read; not confirmed either way. Whether the fund building rate counts toward the FUTA credit was not found in an IDES or DOL source. The date IDES mails yearly rate notices was not found; the statute says only that the Director shall promptly notify each employer. P.A. 104-839 itself was not read; the change is taken from the before and after texts of Sections 1505 and 1506.6 in the ILCS repository.

Unemployment insurance tax in every state

Income tax withholding

Checked Nov 3, 2026

Illinois uses its own certificate, Form IL-W-4; with no IL-W-4 on file the employer withholds on the entire amount of compensation without exemptions. Illinois withholds at a flat 4.95 percent after exemptions and publishes no separate supplemental rate. Residents of Iowa, Kentucky, Michigan and Wisconsin are not withheld on once they file Form IL-W-5-NR, and a nonresident whose pay is not localized in Illinois is not withheld on until the employee has worked more than 30 working days in Illinois.

Withholding certificate

Form IL-W-4, Employee's Illinois Withholding Allowance Certificate. On or before the date the employee starts work, whenever Illinois Income Tax is required to be withheld; a new IL-W-4 is due within 10 days if the number of allowances decreases. With no certificate on file: If the employee does not file a completed IL-W-4 (or fails to sign it, leaves out necessary information, or alters it), the employer withholds Illinois Income Tax on the entire amount of compensation, without allowing any exemptions. A nonresident military spouse files Form IL-W-5-NR to claim exemption under the Military Spouses Residency Relief Act; an employee claiming total exemption checks the exempt box on Form IL-W-4. source Public record

Supplemental wages

2026: 4.95%. No separate supplemental rate is published. Booklet IL-700-T: generally, the rate for withholding Illinois Income Tax is 4.95 percent; for wages and other compensation, subtract any exemptions and multiply the result by 4.95 percent. source Public record

Withholding tables

2026 Booklet IL-700-T, Illinois Withholding Tax Tables (R-12/25), effective January 1, 2026 (2026). Rate 4.95 percent; the exemption allowance is $2,925 for each Line 1 allowance and $1,000 for each Line 2 allowance on Form IL-W-4. The booklet gives both wage tables and an automated payroll formula.

Reciprocity

Agreements with Iowa, Kentucky, Michigan, Wisconsin. Employee form: Form IL-W-5-NR, Employee's Statement of Nonresidence in Illinois. If the employee does not complete Form IL-W-5-NR, the employer must withhold Illinois Income Tax. An employee who changes state of residence must notify the employer within ten days. The employer may, but is not required by Illinois law to, withhold the other state's tax. source Public record

Nonresidents working here

Not required for a nonresident employee who has performed less than 31 days of service in Illinois and whose compensation is not localized in Illinois; once the employee performs nonincidental service in Illinois for more than 30 working days, the Illinois share of pay is subject to withholding. Convenience of the employer: null: no convenience of the employer rule was found in the IDOR publications read. Publication 130 (R-02/26), When is compensation paid in Illinois? and When am I not required to withhold Illinois Income Tax?. source Public record

Deposits and returns

• monthly: First-time taxpayers and taxpayers that reported $12,000 or less in withholding during the look-back period (the one-year period ending June 30 of the preceding calendar year; for 2026, July 1, 2024 through June 30, 2025).. Due The 15th day of the month following the month in which the tax was withheld.
• semi-weekly: More than $12,000 in withholding during the look-back period, or more than $12,000 in withholding during a quarter (semi-weekly from the following quarter, for the rest of the year and the next year).. Due Wednesday for amounts withheld the preceding Wednesday, Thursday or Friday; Friday for amounts withheld the preceding Saturday, Sunday, Monday or Tuesday.

Form IL-941, quarterly, due the last day of the month following the end of the quarter. Payments are made electronically or with Form IL-501. Illinois has no annual withholding reconciliation return; W-2 filing is in data/inforeturns/illinois.json. All Forms IL-941 must be filed electronically (Form IL-900-EW waiver available). Semi-weekly payers must make all payments electronically. MyTax Illinois source Public record

Annual reconciliation

IL-941, due Quarterly, by the last day of the month that follows the end of the quarter.. With the W-2 and 1099 filing rules

Recent and coming changes

• Dec 12, 2025 For film production projects beginning on or after December 12, 2025, P.A. 104-0453 sets the withholding, payment and reporting responsibilities of production companies, their payroll services and loan-out companies (IDOR informational bulletin FY 2026-16). source Public record

The withholding account is the FEIN plus sequence number (see data/taxids/illinois.json). Nonresidents expected to work more than 30 working days in Illinois complete Form IL-W-6, Certificate of Days Worked in Illinois for Non-Residents, unless the employer keeps a qualifying time and attendance system. No Illinois local income tax withheld by employers was found in the IDOR publications read.

Not confirmed: IDOR does not state a separate supplemental wage rate; the 4.95 percent shown is the general withholding rate from Booklet IL-700-T. Whether a federal Form W-4 is accepted in place of Form IL-W-4 is not stated; the IL-W-4 instructions say only that without a completed IL-W-4 no exemptions are allowed. The 2027 Booklet IL-700-T was not yet published when checked.

Withholding rules in every state

Credits for other states' taxes and part-year residents

Checked Nov 3, 2026

Illinois residents and part-year residents claim a credit for income tax paid to other states and their cities and counties on Schedule CR, carried to Form IL-1040, Line 15, limited to the Illinois tax on the doubly taxed income. A part-year resident's income from the period of nonresidence is kept out by allocation: Schedule NR taxes only Illinois-source income received while a nonresident. Nonresidents get no credit, and Illinois is an associate member of the Multistate Tax Commission.

Residents: credit for tax paid to other states

Schedule CR, Credit for Tax Paid to Other States (attach pages 1 through 3 to Form IL-1040). Line: Schedule CR, Step 6, Line 55, carried to Form IL-1040, Line 15 (Income tax paid to another state). Limit: The lesser of the tax paid to other states (Line 51) and the Illinois tax times the Schedule CR decimal (Line 54). The decimal is the non-Illinois portion of base income divided by total base income (Column B, Line 42 divided by Column A, Line 42, rounded to three places). Residents use the Illinois tax from Form IL-1040, Line 12. Covers: Income taxes paid to another state, the District of Columbia, Puerto Rico, or a U.S. territory or possession, or to a county, city or other political subdivision of one of them. The tax must be one deductible as state and local income tax on federal Schedule A. Yes: other states' county, city and local income taxes qualify, including a city tax in a reciprocal state such as Kentucky; attach the local return or W-2 showing local wages. Foreign taxes: No credit for taxes paid to the federal government, foreign countries or their political subdivisions. Pass-through entity taxes: Yes: a partner or shareholder may treat as paid an allocable share of another state's pass-through entity tax that IDOR has found substantially similar to the Illinois tax under Section 201(p) (State Reference Chart on IDOR's site). Attach: Schedule CR pages 1 through 3. The credit is allowed only if a required return was filed with the other state, and the figures come from that return; attach the local return or W-2 for a local tax, and the out-of-state returns for a dual resident of Illinois and Iowa, Kentucky, Michigan or Wisconsin. No credit for tax withheld or paid to Iowa, Kentucky, Michigan or Wisconsin on compensation covered by reciprocity: claim a refund from that state. Line 51 uses the tax from the return filed, not W-2 withholding. Publication 111-C gives the comparison formulas for each state. IL-1040 Schedule CR Instructions (R-12/25); Schedule CR; IL-1040 Instructions 2025, Line 15. source Public record

Part-year residents: income while a nonresident

Allocated or prorated While a nonresident, the taxpayer is taxed only on income from Illinois sources. Column B of Schedule NR carries the income received while a resident plus the Illinois income received while not a resident; the tax is 4.95 percent of the resulting Illinois net income. Schedule NR, Nonresident and Part-Year Resident Computation of Illinois Tax, attached to Form IL-1040. Line: Schedule NR, Line 46 (Illinois base income) and Line 51 (Illinois net income), carried to Form IL-1040, Line 11; tax on Schedule NR, Line 52, carried to Form IL-1040, Line 12. source Public record

Part-year residents: credit for the period of residence

Available. A part-year resident may take the credit only on income earned while an Illinois resident, and includes only the other state's tax on that income (prorated by income, as in the instructions' Indiana example). Schedule CR Column A starts from Schedule NR Column B, and Step 5 (Lines 44 to 49) figures the Illinois tax for the part-year resident. Schedule CR (Step 5, Part-year residents only). source Public record

Nonresidents: reverse credit

No. A nonresident may not take a credit on Schedule CR; nonresidents pay Illinois tax on Illinois-source income figured on Schedule NR. source Public record

Local income taxes

No separate local credit: other states' city, county and local income taxes are included in the Schedule CR credit. source Public record

Multistate Tax Compact

Associate member. source Public record

Other interstate rules

• Residency is by domicile: an Illinois resident is domiciled in Illinois for the entire tax year, and temporary absences (military duty, a foreign residence, school, or a winter or summer residence elsewhere) do not end it. source Public record
• Where one spouse is a resident and the other a nonresident or part-year resident, the couple may file separate Illinois returns; on a joint Illinois return both are taxed as residents (and may use Schedule CR). source Public record
• Temporary absences from Illinois during the year do not make the taxpayer a part-year resident. source Public record

Reciprocity with Iowa, Kentucky, Michigan and Wisconsin is covered on the withholding page. Schedule CR and Schedule NR are the 2025 versions (R-12/25).

Not confirmed: Statute (35 ILCS 5/601(b)(3), 5/301 and 5/304) not read: ilga.gov returned 403 to automated reads. UDITPA or Compact apportionment status not confirmed from a primary source (35 ILCS 5/304 blocked). No 2026 change to Schedule CR or Schedule NR was found; the 2026 forms are not yet posted.

Multistate rules in every state

Business return deadlines and annual reports

Checked Nov 4, 2026

Corporations file Form IL-1120 by the federal due date, the 15th day of the 4th month after the tax year (April 15, 2026 for calendar 2025), with an automatic seven-month extension to file but not to pay. S corporations file Form IL-1120-ST by the 15th day of the 3rd month (March 16, 2026) and partnerships file Form IL-1065 by the 15th day of the 4th month (April 15, 2026), each with an automatic extension. LLCs, corporations and nonprofits file an annual report with the Secretary of State within the 60 days before the first day of their anniversary month: $75 for an LLC ($100 penalty once it is a month late), $75 plus franchise tax for a corporation, and $10 for a nonprofit.

Corporate return

Corporate income tax. Form IL-1120, Corporation Income and Replacement Tax Return. Due: The same as the federal filing due date: for a tax year ending on a date other than June 30, on or before the 15th day of the 4th month following the close of the tax year. For tax year 2025: Apr 15, 2026. Fiscal years: A tax year ending June 30 is due on or before the 15th day of the 3rd month following the close of the tax year. A cooperative's return is due on the 15th day of the 9th month following the close of the tax year, whenever its year ends. source Public record

Corporate extension

Automatic. Seven months (eight months for a June 30 year end), to November 16, 2026 for a 2025 calendar-year return. If the IRS grants an extension beyond the Illinois automatic extension, the Illinois extension equals the federal extension plus one month (attach a copy of the approved federal extension). None: no form is required to obtain the automatic extension. Income and Replacement Tax must be paid in full by the original due date; the extension is not an extension of time to pay, and unpaid tax draws penalty and interest.

S corporations

Form IL-1120-ST (small business corporation replacement tax). Due: The same as the federal filing due date: in general, on or before the 15th day of the 3rd month following the close of the tax year. For tax year 2025: Mar 16, 2026. Automatic seven-month extension to file, with no form (October 15, 2026 for a 2025 calendar-year return); a longer federal extension gives the federal extension plus one month. Replacement tax, pass-through withholding and any elected PTE tax must be paid by the original due date. source Public record

Partnerships

Form IL-1065, Partnership Replacement Tax Return. Due: In general, on or before the 15th day of the 4th month following the close of the tax year. For tax year 2025: Apr 15, 2026. Automatic six-month extension to file, with no form; a longer federal extension is allowed for the length the IRS approves (attach a copy). Tax must be paid by the original due date. source Public record

Individuals

Form IL-1040. For tax year 2025: Apr 15, 2026. Automatic six-month extension to file, to October 15, 2026 (a longer federal extension is allowed automatically); it is not an extension to pay, and tax due is paid with Form IL-505-I. source Public record

Annual report

Filed with the Illinois Secretary of State, Business Services through Business Services (Illinois Secretary of State).

The due dates, fees and the LLC penalty are from the Illinois Compiled Statutes and the Secretary of State's LLC fee table, read in a browser because both sites refuse automated reads. The corporate franchise tax paid with the annual report and the corporation and nonprofit late penalties were not read.

Illinois taxes corporations under the Income Tax Act (income tax plus personal property replacement income tax); partnerships and S corporations pay replacement tax on their own returns. The pass-through entity tax is covered separately.

Not confirmed: Corporation and nonprofit annual report late penalties, the limited partnership report (805 ILCS 215/210) and the LLP renewal (805 ILCS 206/1003) were not read. The corporate franchise tax paid to the Secretary of State with the annual report (amount, due date and any scheduled changes) belongs under otherReturns once read from the Business Corporation Act or the Secretary of State. Whether anything in the due dates changes for tax year 2026: the 2025 IL-1120 What's New lists no due date change; the 2026 instructions are not yet published.

Deadlines and annual reports in every state

Electronic payment, penalties and interest

Checked Nov 4, 2026

Illinois requires electronic payment once annual liability reaches $20,000 for business income tax, sales and use tax and most other taxes, $12,000 for withholding and $200,000 for individual income tax, and for cigarette stamps, motor fuel, cannabis and several other excise taxes at any amount. The late filing penalty is the lesser of $250 or 2% of the tax required to be shown due, with a second penalty of up to $5,000 if a return is not filed within 30 days of a notice; the late payment penalty is 2% if 1 to 30 days late and 10% after that. Interest follows the federal underpayment rate and is 7% a year for 01/01/2025 to 12/31/2026.

Interest on unpaid tax

A uniform rate for underpayments and overpayments of most taxes IDOR administers, reviewed twice each year, on January 1 and July 1, and adjusted according to the federal underpayment rate under IRC Section 6621. Since January 1, 2014 interest accrues at the federal underpayment rate on all overpayments and underpayments. Interest charged runs from the day after the payment due date until paid. Compounding: No. Simple interest figured using a daily rate. IDOR Interest Rates page; Publication 103 (R-09/25). source Public record

When tax must be paid electronically

• Corporate: Annual tax liability meets or exceeds $20,000 for business income tax (20 ILCS 2505/2505-210(b)). Methods: MyTax Illinois, credit card or ACH credit. ACH credit must be set up with the Department first; IDOR links its ACH credit instructions from the business payment page. source Public record
• Sales and use: Annual tax liability meets or exceeds $20,000 for Retailers' Occupation and Use Tax (35 ILCS 120/3 and 20 ILCS 2505/2505-210). Methods: MyTax Illinois, credit card or ACH credit. source Public record
• Withholding: Annual tax liability meets or exceeds $12,000 for withholding income tax (35 ILCS 5/704A). Methods: MyTax Illinois, credit card or ACH credit. source Public record
• Individual: Annual tax liability meets or exceeds $200,000 for individual income tax (20 ILCS 2505/2505-210(b)). Methods: MyTax Illinois, credit card or ACH credit. source Public record
• Other: electricity excise, liquor revenue, hotel operators' occupation, soft drink and any other tax not listed separately: Annual tax liability meets or exceeds $20,000. Methods: MyTax Illinois, credit card or ACH credit. source Public record
• Other: telecommunications excise tax: Average monthly liability of more than $1,000 (35 ILCS 630/6). Methods: MyTax Illinois, credit card or ACH credit. source Public record
• Other: cigarette tax stamps, motor fuel (distributor and supplier), underground storage tank tax and environmental impact fee, IFTA, cannabis cultivation, purchaser excise and dispensary taxes, rental purchase agreement, aviation fuel and parking excise taxes: All payments, regardless of the amount. Methods: MyTax Illinois, credit card or ACH credit; IFTA application and return payments must be made through MyTax Illinois. source Public record

Penalties

Late filing

Covers: Most taxes IDOR administers, for returns due on or after January 1, 1994 (the Motor Fuel Use Tax and the coin-operated amusement device tax have their own penalties). Lesser of $250 or 2% of the tax required to be shown due, reduced by timely payments and credits. A second penalty applies if a return is not filed within 30 days after a notice of nonfiling: the greater of $250 or 2% of the tax shown due, without regard to timely payments. A timely return that cannot be processed has 30 days to be corrected. Maximum: The second (additional) penalty may not exceed $5,000. Minimum: The second penalty is at least $250 and is assessed even if there is no tax due. IDOR Publication 103, Penalties and Interest for Illinois Taxes (R-09/25). source Public record

Late payment

Covers: Tax not paid by the payment due date or the original due date of the return, without regard to extensions. 2% if the payment is 1 to 30 days late; 10% if 31 or more days late. 15% of any amount not paid until after an audit or investigation begins, and 20% of any amount not paid within 30 days after an audit-prepared amended return or waiver of restrictions is issued. Publication 103 lists the late filing and late payment penalties separately and does not say one replaces the other. Tax on which a penalty for underpaying estimated or quarter-monthly payments was assessed is subtracted from the base for the late payment penalty. IDOR Publication 103 (R-09/25). source Public record

Estimated tax, individuals

Charged as penalty. Late payment penalty for underpayment of estimated tax: 2% if 1 to 30 days late, 10% if 31 or more days late. Safe harbor: IDOR waives the penalty if the taxpayer timely paid the lesser of 100% of the prior year's tax liability or 90% of the current year's tax liability. No penalty if this year's liability (after the listed credits) is $1,000 or less, last year's liability was zero, no Illinois return was required last year, or the taxpayer qualifies as a farmer or is 65 or older and permanently lived in a nursing home. Form: Form IL-2210, Computation of Penalties for Individuals. source Public record

Estimated tax, corporations

Charged as penalty. Late payment penalty for underpayment of estimated tax: 2% if 1 to 30 days late, 10% if 31 or more days late. Safe harbor: Corporations (IL-1120): no penalty if timely installments equal at least 90% of this year's tax liability or 100% of the prior year's (when the prior year showed a liability and was not a short year), if this year's liability is $400 or less, or if no IL-1120 was required last year. S corporations and partnerships owe estimated tax only when they elect the pass-through entity tax; the same 90% or 100% test applies and there is no penalty if that liability is $500 or less. Fiduciaries filing IL-1041 are listed as not owing the penalty. Form: Form IL-2220, Computation of Penalties for Businesses. source Public record

Penalty relief

Request a waiver (abatement) of the late filing or late payment penalty for reasonable cause by writing to the address on the notice with a detailed explanation of the circumstances and supporting documents. IDOR says reasonable cause may exist when the taxpayer used ordinary business care and prudence and still could not file or pay on time; IDOR responds in writing. source Public record

Other penalties

• Dishonored payment (bad check). $25 for each remittance not honored by the financial institution. source Public record
• Cost of collection fee (bill not paid in full within 30 days). $30 if the unpaid amount is less than $1,000; $100 if $1,000 or more. source Public record
• Failure to file a correct information return. $5 for each return or statement not timely filed, up to $25,000 a calendar year; may be reduced by 50% if filed within 60 days of the due date. source Public record
• Negligence. 20% of the deficiency attributable to the negligent act or omission. source Public record
• Fraud. 50% of the deficiency or claim amount attributable to the fraudulent act or omission. source Public record
• Failure to keep books and records. $1,000 for the first failure and $3,000 for each later failure. source Public record
• Late transaction return (ST-556 or ST-556-LSE) that would not have resulted in tax. $100, in place of the standard late filing penalty. source Public record

Recent and coming changes

• Oct 1, 2025 Tax amnesty under Public Act 104-06 ran October 1, 2025 through November 17, 2025, for periods ending after June 30, 2018 and before July 1, 2024 (some exclusions); now closed source Public record

Interest is paid on an overpayment only if it is not refunded or credited within 90 days after the return due date. If the IRS grants an additional extension, IDOR grants the same extension. IDOR's rate table shows one period, 01/01/2025 to 12/31/2026, at 7%; no rate for 2027 was posted on 2026-11-04.

Not confirmed: The penalty for paying by another method when electronic payment is required was not found on IDOR's pages or in Publication 103; the rule (86 Ill. Adm. Code 750) is on ilga.gov, which refuses automated reads. The reasonable cause rule, 86 Ill. Adm. Code 700.400, is on ilga.gov (blocked); no first-time abatement policy was found on IDOR's pages. No Illinois interest rate for 2027 was posted; the rate is reviewed January 1 and July 1.

Electronic payment, penalties and interest in every state

Disaster relief rules

Checked Nov 4, 2026

Illinois does not follow IRS disaster postponements by a standing rule; the Governor and the Department of Revenue announce disaster relief by news release or informational bulletin, as for 11 counties in July 2026 and 15 counties in August 2026, and also for out-of-state disasters such as the 2025 California wildfires. Separately, a federal extension of more than six months carries over to the Illinois return, for filing only. Taxpayers can also ask for a penalty waiver for reasonable cause resulting from a disaster.

When the IRS postpones deadlines

Announces relief case by case When taxpayers are impacted by a natural disaster, the affected counties may be declared a disaster, which can lead to extensions for tax filing and payment due dates. For current Illinois disaster declarations and due date extensions, the department points to its news releases and informational bulletins. Per announcement and per county. Relief has also been announced for disasters outside Illinois (southern California wildfires, 2025). IDOR Disaster Relief page (standing guidance); 86 Ill. Adm. Code 700.400 (reasonable cause). source Public record

Taxes covered

Per announcement. The 2025 California wildfire relief covered various state individual and business tax returns and tax payments. The 2026 Illinois releases point to Governor press releases that could not be read. Not covered: The general extension rule (automatic six months, or the federal extension if longer than six months) does not extend the deadline for paying tax unless a separate payment extension is provided. source Public record

State-declared disasters

The 2026 relief was announced by Governor Pritzker and IDOR for counties hit by severe storms (March 10 to June 21, 2026, 11 counties; May through August 2026, 15 counties), described in a Governor release on waiving penalties and interest. Whether those followed a governor's or a federal declaration was not readable. source Public record

How to get relief

Per announcement. For a penalty already charged, write to the address on the notice with a detailed explanation and supporting documents to ask for a waiver for reasonable cause (for example casualty or disaster). Penalties: Reasonable cause resulting from a disaster can support a penalty waiver (86 Ill. Adm. Code 700.400). The 2026 releases are titled as waiving penalties and interest for affected taxpayers. source Public record

Where relief is posted

Disaster Relief (Illinois Department of Revenue)

Other disaster tax rules

• Publication 122 (farmland assessment): unless stipulated, a governor's proclamation declaring a county a State of Illinois disaster area carries no farmland assessment relief; crop damage from flooding goes through the county flood adjustment procedure. source Public record

The July and August 2026 Illinois relief does not appear in data/disasters.json state entries; worth adding once the Governor releases are read.

Not confirmed: The Governor press releases behind the 2026 relief (illinois.gov releases 32701 and 32847) and the IDOR archive copy of the 2025 California release load their text through a script and an API with a key; not read. 86 Ill. Adm. Code 700.400 and any statutory authority for disaster waivers (ilga.gov refused the request, 403). Which taxes and dates the 2026 relief covered, and whether it rests on state or federal declarations.

Current disaster relief and every state's rules

Federal tax picture

From the IRS's own statistics: the Data Book for fiscal 2025 and Statistics of Income for tax year 2023. Every state

Collected by type: Individual income tax withheld and FICA tax $153.0B; Individual income tax payments and SECA tax $40.6B; Business income taxes $21.5B; Excise taxes $5.5B; Estate and trust income tax $5.5B; Estate tax $763M; Railroad retirement tax $432M; Unemployment insurance tax $325M; Gift tax $29M. source Public record

Filers moving in and out, 2022 to 2023

117,297 returns (179,622 people) with $9.2B of income moved in from other states; 145,906 returns (233,804 people) with $15.2B moved out, a net loss of $6.0B in income. source Public record

Minimum wage

Checked Nov 3, 2026. Illinois Department of Labor, Fair Labor Standards Division

Illinois's minimum wage has been $15.00 an hour since January 1, 2025, the last step of the statutory schedule, and stays $15.00 in 2026 with no increase scheduled for 2027. Tipped employees get at least $9.00 an hour (a tip credit of up to 40%), workers under 18 with fewer than 650 hours in the year may be paid $13.00, and adults who do not receive tips may be paid $14.50 for their first 90 days. Chicago sets its own higher rate, $17.05 from July 1, 2026, adjusted every July 1.

Rate

$15.00 from Jan 1, 2025 $15.00 since 1/1/2025; IDOL's rate history lists $15.00 again for 1/1/2026.
$15.00 from Jan 1, 2025 No increase scheduled: $15.00 on 1/1/2025 was the last step of the statute, which has no inflation adjustment. source Public record

How it is set

Fixed in law 820 ILCS 105/4 (Illinois Minimum Wage Law) source Public record

Other rates

• Employees 18 and over who do not receive tips, first 90 days with the employer: $14.50 (2026) source Public record

Tipped employees

2026: cash wage $9.00, tip credit $6.00 Tip credit may not exceed 40% of the wage; tips plus wage must reach $15.00. The same $9.00 may be paid as a 90 day training wage to tipped employees 18 and over.
2027: cash wage $9.00, tip credit $6.00 No change scheduled. source Public record

Youth and training wages

$13.00. Workers under 18 for fewer than 650 hours with an employer in a year; after 650 hours the full $15.00 applies. source Public record

Local minimum wages

Allowed

• Chicago (employers with 4 or more employees; tipped workers $12.96): $17.05 in 2026 source Public record

source Public record

Poster

Your Rights Under Illinois Employment Laws

Recent and coming changes

• Dec 31, 2029 IDOL will stop issuing and recognizing licenses to pay workers with disabilities less than the minimum wage (14(c) certificates) on December 31, 2029, a multi year phase out. source Public record

Chicago's rate changes every July 1 under its Minimum Wage Ordinance; the $17.05 rate took effect July 1, 2026, so it applies for the second half of 2026 and the first half of 2027. Illinois follows the federal duties tests for the executive, administrative and professional overtime exemptions and sets no higher salary threshold.

Not confirmed: Statute text (820 ILCS 105/4) not saved: ilga.gov returned 403 Access Denied to the script. Chicago's July 1, 2027 rate is not yet published. Cook County and other local minimum wage ordinances: not checked (cookcountyil.gov pages tried returned 404; Chicago's FAQ PDF returned 403).

Minimum wage in every state

Paid family and medical leave

Checked Nov 3, 2026. No program

Illinois has no state paid family and medical leave or temporary disability insurance program funded by payroll contributions, so there is no rate, wage base, split or employer filing for 2026 or 2027. The Paid Leave for All Workers Act (820 ILCS 192), in effect since January 1, 2024, lets workers earn up to 40 hours of paid leave a year (1 hour for every 40 hours worked) from their employer; it is a leave requirement on employers, not an insurance program.

The Paid Leave for All Workers Act is enforced by the Illinois Department of Labor. No paid leave or disability insurance employer account appears in this site's employer ID research for Illinois (withholding with IDOR, unemployment insurance with IDES).

Not confirmed: No Illinois agency page read states that Illinois has no paid family leave insurance program; status none rests on the absence of any program on the agency pages read. The U.S. Department of Labor Women's Bureau paid leave page names New Hampshire, Vermont and Virginia as the states with voluntary paid family or medical leave insurance programs, but it lists the states with mandatory programs only on an interactive map that could not be read as text.

Paid leave in every state

Sick leave and time off

Checked Nov 5, 2026. Paid leave for any reason

Illinois's Paid Leave for All Workers Act (820 ILCS 192), in effect since January 1, 2024, requires employers of every size to give at least 40 hours of paid leave a year, earned at 1 hour per 40 hours worked and usable for any reason; employers covered by the Chicago or Cook County paid leave ordinances follow those instead. Illinois has no general state family and medical leave act, but it requires unpaid leave for domestic and violent crime victims (VESSA), bereavement, a child's death by suicide or homicide, and a newborn in intensive care. Earned vacation under a contract or policy must be paid out at separation, and the policy may not forfeit it then.

Paid leave

The law

Paid Leave for All Workers Act source Public record

Employers covered

All employers covered by the Illinois Wage Payment and Collection Act, of any size, plus the State and units of local government. School districts and park districts are not covered. The Act does not apply to an employer covered by a municipal or county paid leave ordinance in effect on January 1, 2024 (Chicago and Cook County); such an employer follows the ordinance for the employees it covers.

Employees not covered

Excluded: railroad employees under the Railroad Unemployment Insurance Act or Railway Labor Act; college students working part time and temporarily for their own college; short-term higher education employees (less than 2 consecutive quarters, no expectation of rehire). A collective bargaining agreement may waive the Act in clear and unambiguous terms, and the Act does not apply to construction industry employees or parcel delivery employees covered by a collective bargaining agreement.

How it builds up

1 hour of paid leave per 40 hours worked; overtime-exempt employees are deemed to work 40 hours a week unless their regular week is shorter

Yearly cap

At least 40 hours in the employer's 12-month period; the employer need not provide more than 40 hours in the 12-month period unless it agrees to. No balance cap is stated; unused leave carries over.

Front-loading

The employer may give the full 40 hours (pro rata where applicable) on the first day of employment or of the 12-month period; a front-loading employer need not allow carryover and may require use before the period ends or forfeiture.

When use can start

90 days after employment begins

Carryover

Unused leave carries over each year (except under front-loading), but the employer need not allow use of more than 40 hours in a 12-month period.

Allowed uses

Any reason of the employee's choosing; the employer may not require a reason or documentation.

Notice and documentation

Up to 7 calendar days' notice when the need is foreseeable; as soon as practicable when it is not, under a written policy the employer must provide. The employer may set a minimum increment of up to 2 hours a day and may not require the employee to find a replacement.

At the end of employment

Not required at separation for leave under the Act, unless the employer credits it to a PTO bank or vacation account, in which case it is paid out like vacation. An employee rehired within 12 months gets the unused balance back and may use it at once.

PTO policies

Yes. A paid leave policy giving at least the required amount that the employee may use for any reason does not need to change.

Employer duties

Post the Department of Labor's notice where notices are customarily posted and include it in any employee handbook; keep records of hours worked, leave accrued and taken, and balances for at least 3 years; on request, tell an employee the amount of leave accrued or used. Written notice of the leave notification policy is required.

Enforcement

Illinois Department of Labor. An employee may file a complaint with the Department within 3 years. An employer is liable to the employee for the actual underpayment, compensatory damages and a penalty of $500 to $1,000, plus attorney's fees, and is subject to a civil penalty of $2,500 for each separate offense; posting violations are $500 for the first audit violation and $1,000 for later ones. The Act provides for complaints to the Department and does not provide a separate private lawsuit.

Citation

820 ILCS 192/1 to 192/99; 56 Ill. Adm. Code 200, Public Act 102-1143 (2023), in effect since Jan 1, 2024

Agency guidance

labor.illinois.gov

Local laws: State law does not bar local paid leave laws. The Paid Leave for All Workers Act does not apply to employers covered by a municipal or county paid leave ordinance in effect on January 1, 2024, and any local paid leave ordinance enacted or amended after that date must give benefits, rights and remedies at least equal to the Act. The Department's rule says employers in municipalities that opted out of an overlapping jurisdiction's paid leave law are subject to the Act. (820 ILCS 192/15(p); 56 Ill. Adm. Code 200.270) source Public record

City and county paid sick leave laws

• City of Chicago Jul 1, 2024 Paid Leave and Paid Sick and Safe Leave Ordinance (Municipal Code chapter 6-130): employees who work at least 80 hours in Chicago within a 120-day period earn 1 hour of paid leave (any reason, up to 40 hours a year) and 1 hour of paid sick leave (up to 40 hours a year) for every 35 hours worked. source Public record
• Cook County Dec 31, 2023 Cook County Paid Leave Ordinance: employees who work in Cook County earn 1 hour of paid leave per 40 hours worked, at least 40 hours in a 12-month period, usable for any reason. Enforced by the Cook County Commission on Human Rights. source Public record

Family and medical leave

Illinois has no general state family and medical leave act and relies on the federal FMLA. Narrower unpaid leave laws (Victims' Economic Security and Safety Act, Family Bereavement Leave Act, Child Extended Bereavement Leave Act, Family Neonatal Intensive Care Leave Act) are listed under other leave.

Vacation and PTO at the end of employment

Must be paid out When a contract or employment policy provides paid vacation, all earned, unused vacation must be paid at the final rate of pay as part of final compensation, and no contract or policy may forfeit earned vacation at separation (unless a collective bargaining agreement provides otherwise). The Department treats paid time off usable for any purpose as earned vacation. (820 ILCS 115/5; 56 Ill. Adm. Code 300.520) source Public record

"Use it or lose it" policies: allowed.

Other leave the law requires

Recent and coming changes

• Jan 1, 2024 Paid Leave for All Workers Act took effect: 40 hours of paid leave for any reason at employers of every size not covered by a local ordinance. in effect source Public record
• Jul 1, 2024 Chicago's Paid Leave and Paid Sick and Safe Leave Ordinance took effect, with 40 hours of paid leave and 40 hours of paid sick leave. in effect source Public record
• Aug 1, 2025 Public Act 104-78 added paid leave for military funeral honors details at employers with 51 or more employees. in effect source Public record
• Jan 1, 2026 Public Act 104-193 amended the paid blood and organ donation leave section; the current text includes part-time employees for organ donation leave. in effect source Public record
• Jun 1, 2026 Family Neonatal Intensive Care Leave Act (Public Act 104-259): 10 or 20 days of unpaid leave while a child is in a NICU. in effect source Public record
• Jan 1, 2027 Public Act 104-683 (HB 4844): employers with more than 25 employees must pay the regular rate for time an employee serves on jury duty. enacted source Public record
• Jan 1, 2027 Public Act 104-581 (HB 1353) expands the Volunteer Emergency Worker Job Protection Act to bar terminating or penalizing a volunteer for required training as well as emergency response. enacted source Public record

What was checked: Statutes were read from the Illinois General Assembly's public file repository (ftp.ilga.gov), because www.ilga.gov blocks automated reads; the repository is synchronized nightly from ILGA's production systems. Also read: the Department of Labor's Paid Leave for All Workers Act FAQ and Leave Rights Division page, its rules at 56 Ill. Adm. Code 200 and 300.520, the Wage Payment and Collection Act Section 5, Chicago's paid leave page and (through the government index) its ordinance and fact sheet, and Cook County's ordinance text and flyer. No state law requires private employers to give holidays or holiday premium pay; none was found. Not listed: protections that only bar firing (none relied on). Status is paid-any under the state law; Chicago also requires separate paid sick leave.

Not confirmed: Chicago's ordinance text (https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2640051), its FAQ (https://www.chicago.gov/content/dam/city/depts/bacp/OSL/faqpaidleavepaidsickleave09252025.pdf) and its fact sheet (https://www.chicago.gov/content/dam/city/depts/bacp/OSL/07012024plfactsheetenglish.pdf) returned 403 to curl; the accrual and cap figures come from the government index text of the ordinance and fact sheet, not a full read. Chicago's carryover, waiting period, employer size rules and payout rules (the fact sheet mentions carryover of 16 hours of paid leave and 80 hours of sick leave) were not confirmed from the ordinance. Cook County's ordinance: which suburbs opted out, and its carryover rule beyond the flyer's 40 hours, were not confirmed. What exactly Public Act 104-193 changed in the blood and organ donation leave section was not read in the Public Act itself. The Illinois Human Rights Act's employer size for pregnancy accommodation (775 ILCS 5/2-101) was not read. No search was made for 2026 session bills on leave that passed one chamber.

Federal law adds unpaid FMLA leave at employers with 50 or more employees and paid sick leave for federal contractors. Sick leave and time off in every state

Retailers' Occupation Tax and Use Tax (together called sales tax)

Checked Nov 3, 2026

Illinois sales tax is the Retailers' Occupation Tax and the Use Tax, at a 6.25 percent state rate (1 percent for qualifying drugs and medical appliances), plus local taxes that the Department of Revenue (IDOR) collects; the State 1 percent grocery tax ended January 1, 2026, though cities and counties may now impose their own. Since January 1, 2026 a remote retailer must collect state and local Retailers' Occupation Tax at the destination rate once its Illinois gross receipts reach $100,000 in a 12-month lookback period, tested each quarter; the 200-transaction test was repealed.

State rate

6.25% Retailers' Occupation Tax Act, 35 ILCS 120, and Use Tax Act, 35 ILCS 105
1 percent for qualifying drugs and medical appliances; the State 1 percent grocery tax was eliminated January 1, 2026 (municipalities and counties may impose a 1 percent local grocery tax). source Public record

Local taxes

Yes, collected by the state. IDOR collects the local taxes on its list: home rule and non-home rule municipal and county taxes, mass transit district (RTA and Metro-East) taxes, park district, county public safety and facilities, county school facility and business district taxes, and from 2026 local grocery taxes. IDOR also says units of local government may impose additional taxes and fees that IDOR does not collect. Local rates generally change January 1 and July 1. In-state retailers collect at the origin rate; remote retailers and marketplace facilitators collect at the destination rate. Rate lookup source Public record

Remote sellers

$100,000 (transaction count repealed Jan 1, 2026); counts gross: cumulative gross receipts from sales of tangible personal property to purchasers in Illinois sales; the preceding 12-month lookback period, tested quarterly at the end of March, June, September and December (Publication 113: the preceding four calendar quarters); since Jan 1, 2021. A remote retailer that meets the threshold must register with IDOR, collect and remit state and local Retailers' Occupation Tax at the destination rate on all Illinois retail sales, and file returns for one year, then test again. For quarters beginning after March 31, 2026 the test runs on a rolling quarterly basis. Destination-based sellers register a tax site for each city or county where they make sales. $100,000 or more (the threshold is met at $100,000). The 200-transaction test applied until December 31, 2025; IDOR moved sellers that met only the transaction test to voluntary use tax status on January 1, 2026. IDOR's Sales and Use Taxes page (last modified 2026-09-02) still lists both thresholds; Bulletin FY 2026-12 (December 2025) and Publication 113 (December 2025) give only the $100,000 test, and those are followed here. Remote retailers have owed state and local Retailers' Occupation Tax since January 1, 2021 under the Leveling the Playing Field Act (Bulletin FY 2024-08). source Public record

Marketplace facilitators

Must collect ($100,000 or more in cumulative gross receipts from sales of tangible personal property to Illinois purchasers over the 12-month lookback, counting the facilitator's own sales and sales on behalf of marketplace sellers (the 200-transaction test was removed January 1, 2026). Facilitated sales are taxed at the destination rate.), since Jan 1, 2021 source Public record

Streamlined Sales Tax

Not a member source Public record

Registration

Certificate of Registration (Illinois Business Registration Application, Form REG-1), registered for Retailers' Occupation Tax Register On MyTax Illinois choose Register a New Business (Form REG-1); online registration takes about one to two business days, and IDOR allows 6 to 8 weeks for a mailed REG-1. Remote retailers and marketplace facilitators that meet the threshold register with IDOR the same way, and destination-based sellers add a Changing Location tax site for each city or county where they make sales before filing a return that includes them. source Public record

Filing

• monthly: average monthly liability greater than $200
• quarterly: average monthly liability between $50 and $200
• annual: average monthly liability less than $50
• quarter-monthly payments: average monthly liability of $20,000 or more; payments due the 7th, 15th, 22nd and last day of the month, in addition to the return

Due: Form ST-1 is due the 20th day of the month after the period (quarterly: the 20th of the month after the quarter; annual: January 20). New registrants file monthly or quarterly, and IDOR reviews accounts annually.
Electronic filing: IDOR mandates electronic filing of Form ST-1 when annual gross receipts average $20,000 or more (Publication 113); quarter-monthly payers pay electronically.
Vendor discount: Retailers' discount of 1.75 percent of tax due or $5 per calendar year, whichever is greater, capped at $1,000 per month for returns due on or after January 1, 2025; a filer under the e-file mandate gets it only by filing electronically and paying on time.
MyTax Illinois source Public record

Certificates

Resale: Form CRT-61, Certificate of Resale. A purchase for resale is tax free only if the purchaser gives an active Illinois registration or resale number (an out-of-state purchaser that resells and delivers only outside Illinois gives its other state's number instead); the seller must verify the number with Verify a Registered Business on MyTax Illinois.
Exemptions: Exclusively charitable, religious and educational organizations and governments apply to IDOR for a sales tax exemption (E) number and give it to the merchant. source Public record

Recent and coming changes

• Jan 1, 2025 Retailers with an Illinois place of business pay destination-based Retailers' Occupation Tax, in place of Use Tax, on sales to Illinois customers sourced outside Illinois (Public Act 103-983) source Public record
• Jan 1, 2025 Leases of tangible personal property (other than titled or registered items) become sales at retail (Public Act 103-592) source Public record
• Jan 1, 2025 Retailers' discount capped at $1,000 per month source Public record
• Jan 1, 2026 200-transaction threshold removed for remote retailers and marketplace facilitators; destination sales reported without location information taxed at a 15 percent undetermined location rate (Public Act 104-0006) source Public record
• Jan 1, 2026 State 1 percent grocery tax eliminated; municipalities and counties may impose a 1 percent local grocery tax by ordinance (Public Act 103-0781) source Public record
• Aug 1, 2026 Remote Retailer Tax Amnesty Program, August 1 to October 31, 2026, waiving penalties and interest on eligible sales tax liabilities source Public record

Illinois calls the seller's tax the Retailers' Occupation Tax; the retailer collects Use Tax from the buyer to reimburse it. Servicepersons use the Service Occupation and Service Use Taxes, not covered here. The statutes on ilga.gov could not be read (403), so the citations are as IDOR lists them.

Not confirmed: ilga.gov returned 403 for 35 ILCS 120/2, 120/2-10 and 120/3 and for Public Act 104-0006, so the rate, nexus and filing sections were not read in the statute. Effective date of the 6.25 percent state rate not found on an IDOR page. Whether there is any fee for Form REG-1 registration is not stated on the pages read. Whether IDOR accepts the Multistate Tax Commission or Streamlined certificate in place of CRT-61 is not stated on the pages read. Date marketplace facilitators first had to collect Illinois Use Tax (before the January 1, 2021 Retailers' Occupation Tax change) not confirmed from a primary source. IDOR's Sales and Use Taxes page still shows the 200-transaction threshold; the owner may want to ask IDOR to update it.

Sales tax in every state

Credit card surcharges

Checked Nov 4, 2026. No state surcharge law

No Illinois statute limiting or barring a seller's credit card surcharge was found. A hidden fees law already enacted (P.A. 104-472) will require advertised prices to include all mandatory fees and surcharges from July 1, 2027; it does not mention card surcharges. The Department of Revenue's rule treats card fees as a cost of doing business that stays in taxable gross receipts even when separately stated.

The rule

No Illinois statute on a seller's credit card surcharge was found.

Cash discounts

No Illinois statute on cash discounts was found.

Sales tax on the surcharge

Depends Yes when the sale itself is taxable. 86 Ill. Adm. Code 130.410 says costs of doing business are part of the retailer's gross receipts subject to tax even if separately stated on the bill, and gives as an example the service charges or fees a credit or debit card company charges the retailer, which are not deductible from gross receipts. The rule does not use the word surcharge. source Public record

Price display and fee laws

• Hidden and misleading fees (815 ILCS 505/2MMMM (P.A. 104-472, HB 228)), from Jul 1, 2027: Makes it an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act to advertise, display or offer a price that does not include all mandatory fees or surcharges. A mandatory fee or surcharge includes one that must be paid to buy the item, is not reasonably avoidable, or a person would reasonably expect to be included. The section does not mention credit card surcharges, and no Attorney General guidance on how it applies to them was found. The Act's private action section (Section 10a) does not apply to a violation. source Public record

Recent and coming changes

• Jul 1, 2027 P.A. 104-472 (HB 228) adds 815 ILCS 505/2MMMM, requiring advertised prices to include all mandatory fees or surcharges; it does not name card surcharges. enacted source Public record

What was checked: ilga.gov refused automated reads and points to its public file repository (ftp.ilga.gov), so the statutes were read there. Every section of the Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505), the Credit Card Issuance Act (815 ILCS 140), the Credit Card Liability Act (815 ILCS 145), the Unsolicited Credit Card Act of 1977 (815 ILCS 150), the Interchange Fee Prohibition Act (815 ILCS 151) and the Sale Price Ad Act (815 ILCS 408) was searched for "surcharge"; the only hits were the new hidden fees section and the prepaid calling card disclosure section (505/2TT). The Interchange Fee Prohibition Act concerns the interchange fees card networks and banks charge on the tax and tip parts of a sale, not a merchant's surcharge to the customer; its Article 150 now takes effect July 1, 2027 under P.A. 104-532. Other ILCS chapters were not searched.

Not confirmed: Department of Revenue General Information Letters said to address card surcharges (ST 24-0042-GIL of December 11, 2024 and ST 14-0021-GIL of April 8, 2014, per a Deloitte newsletter) returned 404 at https://tax.illinois.gov/content/dam/soi/en/web/tax/research/legalinformation/letterrulings/st/documents/2024/ST24-0042-GIL.pdf; the letters were not read. No Attorney General guidance on P.A. 104-472 and card surcharges was found. ILCS chapters outside 815 (for example 205, Financial Regulation) were not searched for a surcharge provision.

Federal law and the card networks' own rules apply in every state. Surcharge rules in every state

Pass-through entity tax

Checked Nov 3, 2026. Pass-through entity (PTE) tax

Partnerships (other than publicly traded partnerships) and S corporations can elect each year, on Form IL-1065 or Form IL-1120-ST, to pay a 4.95% tax on their net income; the election is irrevocable after the extended due date. Owners claim their share as a PTE tax credit on Form IL-1040, Line 28, which counts among payments and refundable credit. The original end date tied to the federal SALT cap has been removed, and for tax years ending on or after December 31, 2026 partnerships may instead pay on residents' full distributive shares plus nonresidents' Illinois-source income.

Law

35 ILCS 5/201(p) (Illinois Income Tax Act). Public Act 102-0658 (2021); amended by Public Act 104-0468 (effective July 1, 2026). First tax year 2021. source Public record

Who can elect

Partnerships, other than publicly traded partnerships under IRC Section 7704, and subchapter S corporations. Investment partnerships may also elect. No owner-type limit is stated; every partner or shareholder receives the PTE tax credit for its share. An electing entity that is a partner of another electing partnership subtracts its distributive share of that partnership's net income, and passes through both the credit for the PTE tax it pays and the PTE tax credit it receives from lower-tier electing entities. source Public record

Election

Check box I on Form IL-1065 (partnerships) or the corresponding box on Form IL-1120-ST (S corporations) and compute the tax on the PTE Income Worksheet. The partnership or S corporation, on its return. Deadline: Made on the annual return; IDOR says the election becomes irrevocable after the extended due date for the year. Made each year. Until the extended due date for the year of the election; irrevocable after that. source Public record

Rate

2026: 4.95% For tax years ending on or after December 31, 2026, a partnership chooses on Form IL-1065 between the Illinois-sourced portion of all partners' distributive shares, or the full distributive shares of resident partners plus the Illinois-sourced income of nonresident partners. S corporations: no change stated.
2025: 4.95% The entity's net income for the taxable year, figured on the PTE Income Worksheet in the IL-1065 or IL-1120-ST instructions; IDOR describes this partnership method as the Illinois-sourced portion of all partners' distributive shares. source Public record

Estimated payments

Required if the expected tax, PTE tax plus replacement tax, is more than $500. Required estimated payments are 90% of the current year liability or 100% of the prior year liability. Payments must be electronic if annual liability including PTE tax is $20,000 or more. On or before the 15th day of the 4th, 6th, 9th and 12th months of the tax year. source Public record

Return

Form IL-1065 (partnerships) or Form IL-1120-ST (S corporations), with the PTE Income Worksheet; credits reported to owners on Schedule K-1-P. Due IL-1065: 15th day of the 4th month after the tax year ends. IL-1120-ST: 15th day of the 3rd month after the tax year ends. Tax is due by the original due date. Automatic six-month extension for IL-1065 and seven-month extension for IL-1120-ST, granted without a request; longer only if the IRS grants a longer federal extension. source Public record

Owner credit

Each owner receives a credit equal to 4.95% of its distributive share of the electing entity's net income, reported on Schedule K-1-P. Individuals enter it on Form IL-1040, Line 28. The credit is allowed only to the extent the entity paid the PTE tax. Yes in effect: Line 28 is added into Line 31, total payments and refundable credit, and any excess over tax is an overpayment. A nonresident individual whose only Illinois income is from electing entities, and whose credit covers the tax, need not file Form IL-1040. Credit for other states' PTET: Yes: residents may treat their allocable share of another state's tax that IDOR finds substantially similar to the Illinois PTE tax as tax they paid, on Schedule CR. IDOR lists the states in a State Reference Chart on its website (not read). source Public record

Recent and coming changes

• The Illinois Income Tax Act was amended to remove the expiration date for the PTE tax (noted in the 2025 IL-1065 and IL-1120-ST instructions, revised July 2026). The act that removed it was not read. source Public record
• Jul 1, 2026 Public Act 104-0468: for tax years ending on or after December 31, 2026, partnerships may choose to pay PTE tax on resident partners' full distributive shares plus nonresident partners' Illinois-sourced income, instead of on the Illinois-sourced portion of all partners' shares. source Public record

The Illinois General Assembly site (ilga.gov) refused automated reads, so the statute and Public Acts 102-0658 and 104-0468 were not read; every fact here is from IDOR publications, forms and instructions.

Not confirmed: Statute text of 35 ILCS 5/201(p) not read (ilga.gov returned Access Denied); the statutory election deadline wording is unconfirmed. Which Public Act removed the PTE tax expiration date, and its date, is not confirmed; IDOR instructions only say the Act was amended. The original end date (tax years beginning before January 1, 2026 per secondary sources) was not confirmed from a primary source. Whether S corporations also get the new resident full distributive share method: IDOR bulletin FY 2027-01 mentions partnerships only. IDOR's State Reference Chart listing states with a substantially similar PTE tax was not located.

Pass-through entity tax in every state

Conformity to the 2025 federal tax law

Checked Nov 3, 2026. Business tax: corporate income tax and personal property replacement income tax (Illinois Income and Replacement Taxes)

Illinois starts from federal adjusted gross income for individuals and federal taxable income for corporations, and the Department of Revenue applies the 2025 federal bonus depreciation rules on its 2025 forms; the conformity statute itself could not be read for this entry. Illinois kept its long-standing addback of all federal bonus depreciation under section 168(k) and, from tax years beginning in 2026, extended it to section 168(n) qualified production property (Public Act 104-0453); Public Act 104-0468 decouples from the section 1202 small business stock exclusion for tax years ending on or after December 31, 2026. The new federal deductions for tips, overtime, car loan interest and seniors are taken after adjusted gross income, so they do not reach the Illinois return.

Follows the Code

Rolling: follows the Code as it changes. 35 ILCS 5/102
Terms have the same meaning as in the Internal Revenue Code "as such Code, laws and statutes are in effect for the taxable year" (read in a browser; ilga.gov refused automated requests). The Department's 2025 IL-4562 instructions apply the federal 100% bonus rate for property acquired after January 19, 2025. source Public record

Starting point

Individuals: federal adjusted gross income
Corporations: federal taxable income source Public record

Response to Public Law 119-21

Decoupled. Public Act 104-0453 (date not confirmed; ilga.gov blocked) and Public Act 104-0468 (effective July 1, 2026). Years: 168(n) bonus addback: tax years beginning on or after January 1, 2026; section 1202 addback: tax years ending on or after December 31, 2026
No act adopting or rejecting Public Law 119-21 as a whole was found. Public Act 104-0453 amended IITA Section 203 to decouple from 100 percent bonus depreciation under section 168(n), as the Department describes it in Informational Bulletin FY 2026-15; Form IL-4562 has applied to bonus depreciation on property acquired after September 10, 2001. Public Act 104-0468 added the section 1202 addback. source Public record

Provision by provision

Other differences

• Section 1202 small business stock: for tax years ending on or after December 31, 2026, individuals, trusts and estates, and partnerships add back federally excluded gain (35 ILCS 5/203(a)(2)(D-26), (c)(2)(G-18), (d)(2)(D-13), Public Act 104-0468). source Public record
• Net CFC tested income (formerly GILTI): for tax years ending on or after December 31, 2025, the Schedule J dividends received deduction is limited to 50% of the amount recognized. source Public record

Guidance from the state

• Informational Bulletin FY 2026-15, What's New for Illinois Income Taxes (December 2025)
• 2025 Form IL-4562 Instructions, Special Depreciation (R-12/25)
• Informational Bulletin FY 2027-01, 2026 Income Tax Changes that May Impact Current Tax Year Liabilities (July 2026)

Recent and coming changes

• Jan 1, 2026 Section 168(n) qualified production property bonus depreciation is added back on Form IL-4562 for tax years beginning on or after January 1, 2026 (Public Act 104-0453). source Public record
• Jul 1, 2026 Public Act 104-0468 took effect July 1, 2026: section 1202 addback for tax years ending on or after December 31, 2026, and a second PTE tax base method for partnerships; the 2026 Schedule M will be updated. source Public record

The Department's bulletin cites section 168(n) for the 2026 change; the IL-4562 instructions show the long-standing addback covers section 168(k) bonus depreciation as well. Public Act text was not read because ilga.gov returned 403 to automated requests.

Not confirmed: The approval date of Public Act 104-0453 was not read (its text says it takes effect upon becoming law). Section 179, section 174A and the 163(j) EBITDA change: no Department statement found; treatment not determined. Whether Illinois has enacted or is considering any other response to Public Law 119-21 (for example the federal scholarship tax credit opt-in bills) was not checked on ilga.gov.

Conformity in every state

Pay in job postings

Checked Nov 2, 2026. Pay required in job postings

Since January 1, 2025, an employer with 15 or more employees that makes a specific job posting must include the pay scale and benefits: the wage or salary, or wage or salary range, and a general description of benefits and other compensation. It covers jobs performed at least in part in Illinois, or performed elsewhere but reporting to a supervisor, office or work site in Illinois. Where no posting was made available, the employer must give an applicant the pay scale and benefits on request before any offer or discussion of compensation, and after an external posting it must tell current employees about promotion opportunities within 14 calendar days.

Salary history ban: Yes (820 ILCS 112/10(b-5) and (b-10)). Employers and employment agencies may not screen applicants by wage or salary history, request or require it as a condition of being considered, interviewed or offered a job, or seek it from a current or former employer. source Public record

What was checked: Local: Chicago's proposed ordinance requiring minimum and maximum salaries in job listings (SO2022-407, adding Municipal Code section 6-100-015) is recorded by the City Clerk as Failed to Pass, final action May 24, 2023 (https://api.chicityclerkelms.chicago.gov/matter/215FC01A-E20D-ED11-82E3-001DD80698CB). A search of the Clerk's legislative records for pay and salary transparency found no enacted Chicago posting ordinance. Pending: the General Assembly's bill status files for the 104th General Assembly (downloaded from ftp.ilga.gov on 2026-11-02) list four bills citing the Equal Pay Act (HB 4858, HB 5147, SB 171, SB 3975); none had passed a chamber. HB 4858, which would split the posted range into separate base pay and variable pay ranges, was re-referred to the Rules Committee on March 27, 2026.

Not confirmed: Cook County and other Illinois counties and cities: no county or suburban code was read for a local posting or pay disclosure ordinance. Whether the 15-employee threshold in subsection (b-25) also applies to the on-request disclosure sentence is not stated in the statute; the Department's FAQ 21 restates the duty without a threshold. The June 18, 2026 amendment to 56 Ill. Adm. Code 320.120 was not compared against the earlier text to see what changed (the Illinois Register issue, 50 Ill. Reg. 8918, was not read).

Pay transparency rules in every state

For tax professionals

Checked Nov 3, 2026. Illinois Department of Revenue (IDOR)

IDOR's power of attorney is Form IL-2848, and IDOR also accepts the Multi-State Power of Attorney form in its place; it does not say whether it accepts the federal Form 2848. No Illinois paid preparer registration or license was found, but paid preparers must enter their IRS PTIN on Illinois income tax returns, with a $50 per return penalty. Paid preparers who file more than ten Illinois individual income tax returns must e-file them unless the client signs Form IL-8948.

Power of attorney

Form IL-2848, Power of Attorney (R-07/26), with Form IL-2848-A for additional representatives and Form IL-2848-B for specific authority. An attorney, certified public accountant, enrolled agent or other person; if Other is checked, the taxpayer's signature must be witnessed by two disinterested witnesses or notarized. Only an attorney may represent a taxpayer in an administrative hearing or before the Illinois Independent Tax Tribunal. Full authority in all tax matters with IDOR, or limited authority for the tax types and years, periods or Audit ID checked (individual income, withholding, excise, business income, sales and use, vehicle use, NPL/1002-D). A limited grant with no year listed covers all years or periods. It includes receipt of Federal Tax Information unless the box is checked. Upload as a single PDF in MyTax Illinois (the Power of Attorney link under Additional Services; no login required), email to REV.POA@illinois.gov, fax to 217-782-4217 (one form per fax, no cover page), or mail to Illinois Department of Revenue, Power of Attorney Forms 3-252, PO Box 19001, Springfield IL 62794-9001. Do not attach it to a tax return. Processing: Email and fax requests are processed in three business days; email filers get a confirmation and fax filers are notified only if the request is denied. Unless revoked or withdrawn, it expires automatically 10 years from the date the taxpayer signed it. A later IL-2848 marked Add: New POA or Remove: Existing POA revokes earlier ones for the same tax types and periods. form source Public record

Federal Form 2848

Not stated IDOR's pages do not mention the federal Form 2848. IDOR says practitioners must have Form IL-2848 on file before it can discuss a client's information, and that the Multi-State Power of Attorney form can be submitted in lieu of Form IL-2848 if it includes the tax type and period, is signed by the taxpayer and the representative, and grants authority broad enough to cover tax matters; otherwise a supplemental IL-2848 may be required. source Public record

Information only

No separate Illinois information authorization form was found. The return's third party designee box lets the designee discuss that return, answer questions during processing, and receive or respond to notices, without signing forms or representing the taxpayer beyond that filing. Fiduciaries use Form IL-56, Notice of Fiduciary Relationship, not a POA. On the return: Form IL-1040 Third Party Designee: "Check if the Department may discuss this return with the third party designee shown in this step." A similar box is on the business income tax forms. source Public record

Preparer registration

No program found

Preparer ID on returns

Any preparer paid to prepare Illinois individual or business income tax returns must enter the PTIN issued by the IRS (taxable years beginning on or after January 1, 2017, under Public Act 99-0641). A preparer employed by a firm must also give the firm's name, FEIN, address and phone number. No state preparer number. PTIN: required. Penalty: E-filed returns reject if the PTIN is missing or incomplete; failure to comply may bring a $50 penalty per return, up to $25,000 per calendar year. source Public record

E-file mandate for preparers

More than ten Illinois individual income tax returns in a calendar year, for a preparer also required to e-file federal individual returns (effective January 1, 2012; 86 Ill. Adm. Code 760.100). Illinois individual income tax returns (Form IL-1040) prepared by paid preparers. Client opt-out: Form IL-8948, Illinois Electronic Filing Opt-Out Declaration, signed by the client; the preparer keeps it for three years and sends it only if IDOR asks. source Public record

Transcripts and account records

Form IL-4506, Request for Copy of Tax Return, one form per tax type, with a copy of government-issued identification and, for anyone other than the taxpayer, a copy of the authorization to receive the information. Online, IDOR's site lets a taxpayer get a 1099-G amount and check estimated payments. Form IL-4506, Request for Copy of Tax Return. Who can ask: The taxpayer, or another person who encloses a power of attorney, tax information authorization, or (for a deceased taxpayer) letters of administration or testamentary. A copy of the filed return with all attachments, optionally certified; years available not stated. Fee: $5 per copy of the return, plus $5 per document certified. Online for representatives: No IDOR page found that lets a representative pull a return copy or account transcript online; the copy is requested on Form IL-4506. request source Public record

Online access for professionals

MyTax Illinois. File returns and make payments for most return types and register a new business; a POA can be uploaded through the Power of Attorney link without logging in. The taxpayer should be the master user and should not let a tax preparer or accountant be the master. The master allows new logons in Manage Additional Logons, then creates a logon for the preparer or lets another person create one with the taxpayer's ID and account information, and can change the access level or deactivate it. source Public record

Practitioner line

No dedicated practitioner line found. POA questions: 1-800-732-8866 or 217-782-3336 (TTY 1-800-544-5304). E-file mandate questions: (866) 440-8680. 8:00 a.m. to 5:00 p.m. Monday through Friday (general line). source Public record

Recent and coming changes

• Form IL-2848 and its instructions were revised in July 2026 (R-07/26); IDOR's POA guidance page was reissued as PIO-126 (R-09/2026). source Public record

For business tax accounts (withholding, business income, sales and use) IDOR says a POA is often not needed because phone staff can discuss the account after verifying security information; for individual matters a POA must be on file. Form IL-2848-E is a separate authorization for agents who make electronic payments for clients. No Illinois preparer registration or license program was found on IDOR's practitioner pages, which list only the PTIN requirement and the e-file mandate.

Not confirmed: Whether IDOR accepts the federal Form 2848: IDOR's pages name only Form IL-2848 and the Multi-State Power of Attorney form. No statute or IDOR statement that Illinois has no paid preparer registration was found; registration.required is false because IDOR's practitioner pages list none. 86 Ill. Adm. Code 760.100 (the e-file mandate rule) could not be read: ilga.gov blocked automated requests (403). Any penalty for not meeting the mandate is not stated on IDOR's page. Turnaround and years available for Form IL-4506 copies are not stated.

Rules for tax professionals in every state

Federal tax data sharing

17 IRS data-sharing agreements with agencies in Illinois, for any purpose (TIGTA, as of March 2026) source Public record; FUTA credit certified to the IRS by Illinois Department of Employment Security source Public record. GAO-09-45 notes that Illinois may not participate in the nationwide SRFMI rollout planned for July 2009. How the IRS shares tax data with the states

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