Starting January 1, 2026, Illinois will remove its 200-transaction economic nexus threshold, meaning remote sellers will only trigger sales tax obligations if they exceed $100,000 in Illinois sales. These tax changes are all part of the state’s House Bill 2755, which still awaits Governor Pritzker’s signature. The bill also creates two tax amnesty programs: The first targets remote retailers and runs from August 1, 2026 to October 31, 2026. It applies to 2021-2026 transactions with simplified rates—9% for most items and 1.75% for food. The second program serves all taxpayers and runs from October 1, 2025 to November 15, 2025, covering tax periods from mid-2018 through mid-2025. Neither program charges interest or penalties.

The bottom line: Illinois is joining states like New Jersey and Utah who have recently decided to eliminate their transaction threshold. These changes will make tax compliance easier for small online businesses selling into the state. However, businesses with high transaction volumes but lower revenue could feel the negative effects of these reforms.