Which state has the lower sales tax nexus threshold, Illinois or Ohio?

Both Illinois and Ohio 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 2026-06-03; confirm against the official source before registering.

Do both Illinois and Ohio have marketplace facilitator laws?

Yes. Both Illinois and Ohio 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 2026-06-03.

Which has the lower sales tax rate, Illinois or Ohio?

Ohio has the lower combined state and local sales tax rate at 7.29%, 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 2026-06-03.

Do I need to register for sales tax in both Illinois and Ohio?

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 Ohio'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 2026-06-03.

When did economic nexus take effect in Illinois and Ohio?

Illinois's economic nexus rule took effect on 2026-01-01, and Ohio's took effect on 2019-08-01. 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.

Illinois vs Ohio Sales Tax: 8.96% vs 7.29%, Nexus 2026

Updated 2026-06-26

Reviewed by Nexus by State research team using official state tax sources. Last reviewed 2026-06-26.

Compare Illinois and Ohio sales tax rates: Illinois shows a 8.96% combined state and average local rate with a $100,000 economic nexus threshold, while Ohio shows 7.29% with a $100,000 threshold. This guide focuses on seller sales-tax obligations rather than personal income-tax returns.

Metric	Illinois	Ohio
Economic nexus threshold	$100,000	$100,000
Transaction threshold	None	200
State rate	6.25%	5.75%
Avg. local rate	2.71%	1.54%
Combined state + local	8.96%	7.29%
Marketplace facilitator	Yes	Yes
Effective since	2026-01-01	2019-08-01

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: Ohio is friendlier for customers with a combined state + local rate of 7.29% vs 8.96%.

Ohio 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.

Ohio — nexus note

Ohio sales tax nexus and economic nexus threshold: effective August 1, 2019, out-of-state sellers have substantial nexus when Ohio gross receipts exceed $100,000 or the seller has at least 200 Ohio transactions in the current or previous calendar year. Ohio marketplace-facilitator rules use the same $100,000-or-200-transaction test, counting the facilitator's own Ohio sales plus sales facilitated for marketplace sellers. Marketplace sellers with Ohio sales through facilitators plus direct channels may need a seller's use tax account once combined Ohio sales exceed the threshold, but collect only on taxable direct sales that are not collected by a facilitator. Ohio Department of Taxation source data last retrieved 2026-06-03.

What to do next

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

Illinois overview →Ohio overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Illinois or Ohio?: Both Illinois and Ohio 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 2026-06-03; confirm against the official source before registering.
Do both Illinois and Ohio have marketplace facilitator laws?: Yes. Both Illinois and Ohio 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 2026-06-03.
Which has the lower sales tax rate, Illinois or Ohio?: Ohio has the lower combined state and local sales tax rate at 7.29%, 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 2026-06-03.
Do I need to register for sales tax in both Illinois and Ohio?: 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 Ohio'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 2026-06-03.
When did economic nexus take effect in Illinois and Ohio?: Illinois's economic nexus rule took effect on 2026-01-01, and Ohio's took effect on 2019-08-01. 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.

More sales tax comparisons

Selling into more than two states? Compare Illinois and Ohio against other major markets for nexus thresholds, rates, and marketplace facilitator rules.

Sources

date_retrieved: Illinois 2026-05-22 · Ohio 2026-06-03