Illinois vs North Carolina Sales Tax Nexus — Comparison 2026
Compare economic nexus thresholds, state and local rates, and filing rules in Illinois and North Carolina.
| Metric | Illinois | North Carolina |
|---|---|---|
| Economic nexus threshold | $100,000 | $100,000 |
| Transaction threshold | None | None |
| State rate | 6.25% | 4.75% |
| Avg. local rate | 2.71% | 2.25% |
| Combined state + local | 8.96% | 7.00% |
| Marketplace facilitator | Yes | Yes |
| Effective since | 2026-01-01 | 2024-07-01 |
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: North Carolina is friendlier for customers with a combined state + local rate of 7.00% vs 8.96%.
Neither state has a transaction-count trigger — only the dollar threshold matters.
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.
North Carolina — nexus note
North Carolina sales tax nexus and economic nexus threshold: effective July 1, 2024, the remote-seller transaction threshold was repealed. A remote seller is engaged in business in North Carolina when gross sales sourced to North Carolina exceed $100,000 in the previous or current calendar year, including sales as a marketplace seller and marketplace-facilitated sales. NCDOR guidance says the threshold calculation includes taxable sales, sales for resale, exempt sales, nontaxable sales, and marketplace-facilitated sales. Marketplace facilitators use the same $100,000 sourced-gross-sales threshold, including all marketplace-facilitated sales for all marketplace sellers.
What to do next
Use the nexus calculator to check exactly which of Illinois and North Carolina you've already triggered. Then read each state's full guide:
Frequently asked questions
- Which state has the lower sales tax nexus threshold, Illinois or North Carolina?
- Both Illinois and North Carolina 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 2026-05-22; confirm against the official source before registering.
- Do both Illinois and North Carolina have marketplace facilitator laws?
- Yes. Both Illinois and North Carolina 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, Illinois or North Carolina?
- North Carolina has the lower combined state and local sales tax rate at 7.00%, 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 2026-05-22.
- Do I need to register for sales tax in both Illinois and North Carolina?
- 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 North Carolina'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 Illinois and North Carolina?
- Illinois's economic nexus rule took effect on 2026-01-01, and North Carolina's took effect on 2024-07-01. 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 · North Carolina 2026-05-22
- Illinois: https://tax.illinois.gov/
- Illinois: https://tax.illinois.gov/research/taxinformation/sales/rot/remote-sellers.html
- Illinois: https://tax.illinois.gov/research/taxinformation/sales/sales-and-use-tax-definitions.html
- Illinois: https://tax.illinois.gov/research/publications/bulletins/fy-2026-12.html
- Illinois: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- Illinois: https://taxfoundation.org/data/all/state/sales-tax-rates/
- North Carolina: https://www.ncdor.gov/
- North Carolina: https://www.ncdor.gov/taxes-forms/sales-and-use-tax/remote-sales
- North Carolina: https://www.ncdor.gov/taxes-forms/sales-and-use-tax/other-sales-and-use-tax-resources/remote-sales
- North Carolina: https://www.ncdor.gov/taxes-forms/sales-and-use-tax/remote-sales/frequently-asked-questions-remote-sales
- North Carolina: https://www.ncdor.gov/taxes-forms/sales-and-use-tax/other-sales-and-use-tax-resources/legislative-changes-taxes-or-other-items-administered-sales-and-use-tax-division/2024-sales-tax-legislative-changes
- North Carolina: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
- North Carolina: https://taxfoundation.org/data/all/state/sales-tax-rates/