Illinois Online Shoppers Will Pay Full Local Sales Tax This Season
The big online retailers like Amazon, e-Bay, Etsy, and even the smaller online sellers didn't have to bother taking out Illinois sales tax until a law took effect in 2020 that required they charge the state sales tax of 6.25%.
However, online sellers still had a real advantage over Illinois' brick-and-mortar stores since the online seller was only taking out an additional 6.25% while the physical stores had to take charge that 6.25% plus add in the local sales tax. That means that some Illinois brick-and-mortars were charging over 10% in tax while the online seller came in much lower.
The “Leveling the Playing Field for Illinois Retail Act" Changed All That
Now online retailers of any and every size must charge the full local rates, including the local taxes cities and counties have imposed on the brick-and-mortar retailers.
Back when our shopping habits tipped in favor of online shopping over hitting the stores, logistical and legal issues prevented states nationally from catching up in the tax department. It took until 2018 to force online sellers without an in-state physical presence to collect sales taxes for the states in which the order was placed.
What Does This Mean For Rockford Area Shoppers?
The bottom line is that Rockford online shoppers will be charged the same tax rate as if they'd made their purchase in a brick-and-mortar store. Combining Illinois' sales tax rate with Rockford's tax will add 8.25% to your total.
It could be worse, you could be online shopping in Chicago. If you do, get ready to pay 10.25% more at the end of your shopping session.
No tax breaks for you on Cyber Monday.