Illinois is running a Remote Retailer Tax Amnesty Program through October 31, 2026. It lets out-of-state sellers settle past Illinois sales tax without penalties or interest.
Who qualifies
Remote sellers with no physical presence in Illinois that owe unpaid Retailers’ Occupation Tax on sales made from January 1, 2021 through June 30, 2026. Generally, the seller must have exceeded Illinois economic nexus thresholds, measured by either sales dollars or transaction count.
What participants receive
- Penalties and interest waived on qualifying liabilities.
- Simplified statewide rates: 9.0% for general merchandise and 1.75% for qualifying food, drugs, and medical supplies, instead of location-by-location rates.
Best fit
Sellers that never registered in Illinois, are unsure what they owe, or lack records tying past sales to specific delivery locations.
Risk of not participating
Future audits can result in assessments of tax, penalties, and interest. Illinois may apply a rate of up to 15% when it cannot establish where a sale was delivered.
Other options
Voluntary disclosure programs outside the amnesty may suit some sellers better. The programs differ, so they should be compared before choosing.
Who can apply
The program is for remote sellers with no physical presence in Illinois that never paid Illinois sales tax on sales made from January 1, 2021 through June 30, 2026. Generally, you must have passed the state’s economic nexus thresholds, based on either total Illinois sales or the number of Illinois transactions.
Why it’s attractive
Illinois sales tax varies by delivery address, and many remote sellers never built systems to track it. The amnesty offers a simpler route: pay past-due tax at one statewide rate, 9.0% for most goods or 1.75% for qualifying food, drugs, and medical supplies. The state waives all penalties and interest.
That matters most if you:
- Never registered in Illinois
- Aren’t sure whether or when you crossed the thresholds
- Can’t reliably tie past sales to specific Illinois locations
How Leyton Can Help
With the deadline close, confirm whether you have nexus, estimate your exposure, and decide which program fits. Contact Leyton’s SALT team to review your situation and prepare the filings.