Any sales made either through the Internet or a catalog are taxable to Illinois residents if the item is being delivered to an Illinois address.
If you are an Illinois retailer or an out-of-state retailer and the sales take place in Illinois, then the location where the sales take place (generally the Illinois location where the purchase order is accepted) determines the rate of sales tax.
If the order is accepted at an out-of-state location and the out-of-state retailer ships the product from an Illinois warehouse, distribution center, etc., the transaction is subject to sales tax and the Illinois location where the product is shipped from determines the rate of tax. Please see 86 Il. Adm. Code
150.801 and
150.201(i).
For a list of the sales tax rates for Illinois locations, please refer to the
Tax Rate Finder.
If the order is accepted out-of-state and the tangible personal property is shipped from an out-of-state location, Illinois use tax rates are 6.25% for general merchandise or 1% for qualifying food, drugs, and medical appliances.
If you are an Illinois retailer and you ship merchandise that you sold to locations outside of Illinois, the sales will be considered interstate commerce and will not be subject to Illinois tax. Please see 86 Il. Adm. Code
130.605.
