Illinois drops the 200-transaction test for remote retailers from 1 January 2026

What changed in detail

Illinois Public Act 104-0006 removed the 200-transaction threshold from Illinois’s economic nexus standard for remote retailers and marketplace facilitators from 1 January 2026. The Act (HB 2755) was signed on 16 June 2025.

Before the change, a remote retailer or marketplace facilitator was treated as engaged in selling tangible personal property at retail in Illinois if, during a 12-month lookback period, it had either USD 100,000 or more in cumulative gross receipts from sales to Illinois purchasers or 200 or more separate transactions. It was then subject to State and local Retailers’ Occupation Tax (ROT) at destination rates.

On or after 1 January 2026, the only test is USD 100,000 or more in cumulative gross receipts during the lookback period. The Illinois Department of Revenue explained the change in Informational Bulletin FY 2026-12 (December 2025).

The same Act changes one more rule from 1 January 2026. Where a taxpayer fails to give enough information to locate a destination-based sale, the Department assesses tax on those receipts at a 15% undetermined-location rate, instead of applying unprocessable-return penalties. The Department may use that rate in audits of earlier periods too.

What it means

The change is in force. Illinois dropped the count after Wyoming, Indiana and Utah.

A retailer that qualified only on transaction count no longer owes ROT on remote sales from 2026. Its earlier periods still matter. The 2026 Remote Retailer Amnesty, open from 1 August to 31 October 2026, offered retailers that met the threshold a way to settle unpaid ROT for 2021 to mid-2026 without interest or penalties. For back periods not settled that way, an audit can now apply the 15% rate to any destination sales the retailer cannot locate.