NSNexus by State

California vs Illinois Sales Tax Nexus — Comparison 2026

Updated

Compare economic nexus thresholds, state and local rates, and filing rules in California and Illinois.

MetricCaliforniaIllinois
Economic nexus threshold$500,000$100,000
Transaction thresholdNoneNone
State rate7.25%6.25%
Avg. local rate1.74%2.71%
Combined state + local8.99%8.96%
Marketplace facilitatorYesYes
Effective since2019-04-012026-01-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in Illinois because of its $100,000 threshold. If you cross that first, you register there first.

On rate: Illinois is friendlier for customers with a combined state + local rate of 8.96% vs 8.99%.

Neither state has a transaction-count trigger — only the dollar threshold matters.

California — nexus note

California sales tax nexus and economic nexus threshold: CDTFA guidance says remote retailers must register and collect California use tax when total combined sales of tangible personal property for delivery into California exceed $500,000 during the preceding or current calendar year. California uses a sales-only threshold — no transaction-count test. AB 147 replaced the earlier $100,000/200-transaction Wayfair threshold with the current $500,000 standard, and related-person sales count toward the threshold. CDTFA marketplace guidance says sellers include both direct California sales and marketplace-facilitated sales when testing the $500,000 threshold, but sellers whose California sales are entirely facilitated by registered marketplace facilitators may not need separate registration for those marketplace transactions. Direct-to-consumer sales outside a marketplace remain the seller's own collection responsibility once California nexus is met.

Illinois — nexus note

Illinois sales tax nexus and economic nexus threshold: beginning January 1, 2026, a remote retailer is subject to Illinois state and local Retailers' Occupation Tax when it has $100,000 or more in cumulative gross receipts from sales of tangible personal property to Illinois purchasers during the lookback period. The prior 200-transaction threshold applied from 2021 through 2025 but no longer applies for 2026 and later periods. Remote retailers and marketplace facilitators determine the threshold quarterly for the preceding 12-month period, and destination-based local ROT generally applies when the sale is sourced outside Illinois.

What to do next

Use the nexus calculator to check exactly which of California and Illinois you've already triggered. Then read each state's full guide:

California overview →Illinois overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, California or Illinois?
Illinois has the lower economic nexus threshold at $100,000, versus $500,000 in California. A seller's Illinois sales would reach the published Illinois threshold first. These are the thresholds published by each state's tax authority as of 2026-05-22; confirm against the official source before registering.
Do both California and Illinois have marketplace facilitator laws?
Yes. Both California and Illinois have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-22.
Which has the lower sales tax rate, California or Illinois?
Illinois has the lower combined state and local sales tax rate at 8.96%, compared with 8.99% in California. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-22.
Do I need to register for sales tax in both California and Illinois?
It depends on where you cross each state's economic nexus threshold (or have physical presence there). California's published threshold is $500,000, and Illinois's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-22.
When did economic nexus take effect in California and Illinois?
California's economic nexus rule took effect on 2019-04-01, and Illinois's took effect on 2026-01-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Sources

date_retrieved: California 2026-05-21 · Illinois 2026-05-22