Minimum Sales Rate Tax for 2024
| 6.25% | Column content | Column content | Column content | Column content | |
| 1.0% | Column content | Column content | Column content | Column content | |
| 1.5% | Column content | Column content | Column content | Column content | |
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Column content | Column content | Column content | Column content | ||
| Rtd Greater Denver | Column content | Column content | Column content | Column content | |
| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
| Regional Transport Authority | Column content | Column content | Column content | Column content | |
| Minimum combined sales tax rate value | 8.75% | Column content | Column content | Column content | Column content |
| Special tax | Column content | Column content | Column content | Column content | |
| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | 200 | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 20th of the month following the reporting period. | Column content | Column content | Column content | Column content |
The state of Illinois applies a base sales tax rate of 6.25%. On top of that, the city of Rockford imposes an additional 1% sales tax, along with a 1.5% Winnebago county tax. This brings the overall sales tax rate for Rockford to 8.75%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Rockford, having a nexus means your business has a connection to Illinois that requires you to collect sales tax. Nexus can be established through various means, including physical presence or significant economic activity. The landmark case South Dakota v. Wayfair, Inc. broadened the definition of nexus, allowing states to impose tax collection based on economic thresholds, even without a physical presence.
Specific sales tax rules for Rockford?
In the City of Rockford, businesses must collect a 1% Redevelopment Fund Tax on the retail purchase price of qualifying food, beverages, alcoholic drinks, and packaged liquor, in addition to the standard sales tax. Hotels and motels are also required to collect this 1% tax alongside the Hotel Operator’s Occupation tax on room rentals. Furthermore, hotels and motels are responsible for collecting a 5% Tourism Tax in addition to the 1% Redevelopment Fund Tax.
Additionally, building materials used for new construction or property rehabilitation within Rockford’s enterprise zones may be exempt from the 8.25% sales tax if the retailer is provided with a Certificate of Eligibility from the Illinois Department of Revenue. Purchasers must obtain this certificate from the City of Rockford Enterprise Zone Administrator.
Services
Not subject taxable unless they are associated with the sale of physical goods.
Goods
Items like electronics, appliances, furniture and vehicles are taxable in Rockford.
Clothing
All clothing purchases are fully taxable.
Electronics
Taxable.
SaaS
Prewritten software delivered electronically and software-as-a-service (SaaS) are generally taxable.
Digital Products
While physical versions of digital products are taxable, purely electronic formats are usually exempt.
Software
Prewritten software delivered electronically and software-as-a-service (SaaS) are generally taxable.
Freight/Shipping
For taxable goods, delivery and handling charges are typically included in the taxable amount in Rockford.
Speak to a US sales tax expert today
Schedule a call today
