Blog Details

2025-06-26

The State of Illinois is streamlining its economic nexus requirements, a significant change that will impact many out-of-state retailers.

Effective 𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟭, 𝟮𝟬𝟮𝟲, the 200-transaction count threshold for economic nexus will be officially 𝗿𝗲𝗺𝗼𝘃𝗲𝗱. Moving forward, remote businesses will solely be required to register or maintain registration in Illinois if their gross sales into the state meet or exceed the $𝟭𝟬𝟬,𝟬𝟬𝟬 𝘀𝗮𝗹𝗲𝘀 𝘁𝗵𝗿𝗲𝘀𝗵𝗼𝗹𝗱 in a 12-month period.

This update, signed into law by Governor JB Pritzker on June 16, 2025 (Illinois HB 2755), aims to provide smaller businesses with the opportunity to review and potentially streamline their sales tax registrations, while also easing the administrative burden on the Department of Revenue.

𝗞𝗲𝘆 𝘁𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀:

• 𝗡𝗼 𝗺𝗼𝗿𝗲 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻 𝗰𝗼𝘂𝗻𝘁: Focus solely on the $100,000 sales threshold.

• 𝗗𝗲𝗿𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆: If your sales fall below $100,000 in a 12-month period, you may be able to deregister or defer initial registration.

• 𝗖𝗼𝗻𝘁𝗶𝗻𝘂𝗼𝘂𝘀 𝗺𝗼𝗻𝗶𝘁𝗼𝗿𝗶𝗻𝗴: Even if you deregister, you must continue to monitor your sales on a quarterly basis (ending March, June, September, and December) for the prior 12-month period. If sales exceed $100,000, re-registration and collection will be required.

Remote sellers to Illinois customers should begin assessing their registration status and preparing for any necessary changes as soon as possible to ensure compliance.

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Illinois Updates Economic Nexus Rules, Drops Transaction Threshold