The Illinois Department of Revenue is running a Remote Retailer Tax Amnesty Program, and the window closes on October 31, 2026, five days from now. If your business sells goods to Illinois customers from outside the state and never registered to collect Illinois sales tax, this program lets you report the old liability at simplified rates and have the penalties and interest forgiven. The tax itself still has to be paid. After the window closes, the department can audit those past periods in the ordinary way.
Who is affected
The program is for remote retailers: sellers of tangible personal property to Illinois purchasers that have no physical presence in Illinois. According to the department's bulletin FY 2026-28, you must also meet a remittance threshold, which is at least $100,000 of gross receipts from Illinois sales over the four preceding quarters. For quarters ending after January 1, 2021 and on or before December 31, 2025, 200 or more separate Illinois transactions can also meet the threshold. For quarters beginning on or after January 1, 2026, only the $100,000 test applies.
The covered taxes are the Retailers' Occupation Tax, including items that must be titled or registered with a state agency, and the locally imposed retailers' occupation taxes that the department administers. You must be registered with the department and hold an active MyTax Illinois logon.
Businesses located in Illinois are not the target of this program, but you may still be affected if you advise or contract with out-of-state sellers, or if your own online store ships to customers in several states.
Effective date and deadlines
- August 1 to October 31, 2026: the application and payment window.
- October 31, 2026: the last day to apply, pay, or request a hardship repayment plan.
- November 1, 2026: interest begins to accrue on any balance placed on a repayment plan.
- December 1, 2026: automatic withdrawals begin under an approved plan.
- Starting with the July 2026 reporting period, due August 20, 2026: registered remote retailers must file Form ST-1 to avoid new penalties and interest.
Registration usually takes one to two business days, and the logon follows after that, so a seller that has not yet registered has very little room left.
What to do now
- Decide whether you are a remote retailer under the bulletin: no Illinois physical presence, sales of tangible goods to Illinois buyers, and receipts above the threshold.
- If you are not yet registered, register through MyTax Illinois today and watch for the department's email about creating a logon.
- Pull your sales by period from January 1, 2021 through June 30, 2026, and split out food for off-site consumption and medicines, which use the lower simplified rate. Keep the records; without them the department presumes the 9 percent rate.
- Log in, open the account options next to your ST-1 account and choose the Remote Retailer Amnesty Application.
- Select the periods you are claiming and check the amounts. The department says liability cannot be edited after it is processed.
- Pay electronically with the application, or request a financial hardship plan of 6, 12, 18 or 24 monthly installments before the deadline.
- Keep the confirmation and payment record with your sales tax files.
Liability reported on paper returns does not qualify for the relief, and if you collected tax at a higher rate from customers you must report and pay the higher amount.
How it connects to our guides
The amnesty only makes sense once you know whether you have created a filing duty in the first place. Our guide to sales tax nexus explains how physical presence and economic activity create that duty, and the sales tax service page describes registration and filing support. Sellers who rely on marketplaces and payment platforms can also read about online sellers and the 1099-NEC and 1099-K reporting rules. For the wider state picture, see Illinois taxes and the tax and payroll calendar.
How we can help
We can review your Illinois sales by period, help you decide whether the program fits your situation, and explain the registration and filing steps with you. We do not decide eligibility for the department, and we cannot promise how it will treat a particular application. This is general information and not advice for your personal circumstances.
Frequently asked questions
Does the amnesty cancel the sales tax I owe? No. The department waives penalties and interest on eligible liabilities that are paid in full or under a completed repayment plan. The underlying tax, calculated at the simplified rates, is still due.
What happens if I miss October 31? The program page lists the window as ending on October 31, 2026. After that, the relief is not available under this program, and a seller that did not take part may face an audit with additional penalties and interest.
Can I use the amnesty if I paid some of the tax already? The bulletin says penalties and interest on liabilities paid before the amnesty period are not waived. A verified overpayment or credit on your account can count as a qualified payment, so ask a tax professional to review your account before you file.
What if I cannot pay everything at once? A financial hardship plan with 6, 12, 18 or 24 monthly installments and a down payment is available if requested by October 31, 2026. Missing the agreed amount causes the amnesty to be lost.
Official sources
- Illinois Department of Revenue: Illinois Tax Amnesty
- Illinois Department of Revenue: FY 2026-28, 2026 Illinois Remote Retailer Tax Amnesty Program
- Illinois Department of Revenue: home page
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.