NSNexus by State

Illinois vs New Jersey Sales Tax Nexus — Comparison 2026

Updated

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

MetricIllinoisNew Jersey
Economic nexus threshold$100,000$100,000
Transaction thresholdNone200
State rate6.25%6.63%
Avg. local rate2.71%n/a
Combined state + local8.96%6.63%
Marketplace facilitatorYesYes
Effective since2026-01-012018-11-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in both states because of its threshold. If you cross that first, you register there first.

On rate: New Jersey is friendlier for customers with a combined state + local rate of 6.63% vs 8.96%.

New Jersey also adds a 200-transaction trigger that Illinois doesn't have.

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.

New Jersey — nexus note

New Jersey sales tax nexus and economic nexus threshold: since November 1, 2018, remote sellers must register, collect, and remit New Jersey Sales Tax when current- or prior-calendar-year gross revenue from sales of tangible personal property, specified digital products, or taxable services delivered into New Jersey exceeds $100,000 OR those sales reach 200 or more separate transactions. New Jersey includes nontaxable retail sales of tangible personal property and specified digital products in the $100,000 gross-revenue test, but remote sellers making only resale sales or only nontaxable retail sales are not required to register on that basis. Marketplace facilitators collect New Jersey Sales Tax on marketplace transactions regardless of whether the marketplace seller is above or below the threshold; an over-threshold marketplace-only seller may register and request non-reporting status. New Jersey Division of Taxation source data last retrieved 2026-06-08.

What to do next

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

Illinois overview →New Jersey overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Illinois or New Jersey?
Both Illinois and New Jersey publish the same economic nexus dollar threshold of $100,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. These are the thresholds published by each state's tax authority as of 2026-06-08; confirm against the official source before registering.
Do both Illinois and New Jersey have marketplace facilitator laws?
Yes. Both Illinois and New Jersey 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 2026-06-08.
Which has the lower sales tax rate, Illinois or New Jersey?
New Jersey has the lower combined state and local sales tax rate at 6.63%, compared with 8.96% in Illinois. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-06-08.
Do I need to register for sales tax in both Illinois and New Jersey?
It depends on where you cross each state's economic nexus threshold (or have physical presence there). Illinois's published threshold is $100,000, and New Jersey's is $100,000 or 200 transactions. 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 2026-06-08.
When did economic nexus take effect in Illinois and New Jersey?
Illinois's economic nexus rule took effect on 2026-01-01, and New Jersey's took effect on 2018-11-01. 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: Illinois 2026-05-22 · New Jersey 2026-06-08