NSNexus by State

Illinois vs Washington Sales Tax: 8.96% vs 9.51%, Nexus 2026

Updated

Reviewed by Nexus by State research team using official state tax sources. Last reviewed .

Compare Illinois and Washington sales tax rates: Illinois shows a 8.96% combined state and average local rate with a $100,000 economic nexus threshold, while Washington shows 9.51% with a $100,000 threshold. This guide focuses on seller sales-tax obligations rather than personal income-tax returns.

MetricIllinoisWashington
Economic nexus threshold$100,000$100,000
Transaction thresholdNoneNone
State rate6.25%6.50%
Avg. local rate2.71%3.01%
Combined state + local8.96%9.51%
Marketplace facilitatorYesYes
Effective since2026-01-012020-01-01

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: Illinois is friendlier for customers with a combined state + local rate of 8.96% vs 9.51%.

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.

Washington — nexus note

Washington sales tax nexus and economic nexus threshold: $100,000 in gross receipts sourced or attributed to Washington in the current or prior year (eff. 2020-01-01). The transaction-count threshold was eliminated when this unified threshold took effect. Crossing the threshold registers a remote seller for both retail sales tax AND Business & Occupation (B&O) tax — Washington classifies remote-seller revenue under the Retailing B&O classification, and a "No Local Activity" deduction is available when the seller has no in-state physical B&O nexus. Marketplace facilitator law (RCW 82.08.0531; marketplace facilitator defined at RCW 82.08.010(15)) applies the same $100,000 Washington-receipts threshold to marketplaces — Amazon, Etsy, eBay, and Walmart collect and remit Washington sales tax on third-party transactions they facilitate, and have provided monthly Washington-sales reports to their sellers since 2019-07-01. Direct-to-consumer Washington sales you make outside any marketplace continue to count toward your own $100,000 economic-nexus calculation.

What to do next

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

Illinois overview →Washington overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Illinois or Washington?
Both Illinois and Washington 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 2026-05-26; confirm against the official source before registering.
Do both Illinois and Washington have marketplace facilitator laws?
Yes. Both Illinois and Washington 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 2026-05-26.
Which has the lower sales tax rate, Illinois or Washington?
Illinois has the lower combined state and local sales tax rate at 8.96%, compared with 9.51% in Washington. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-26.
Do I need to register for sales tax in both Illinois and Washington?
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 Washington'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 2026-05-26.
When did economic nexus take effect in Illinois and Washington?
Illinois's economic nexus rule took effect on 2026-01-01, and Washington's took effect on 2020-01-01. 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.

More sales tax comparisons

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

More Illinois comparisons

More Washington comparisons

Sources

date_retrieved: Illinois 2026-05-22 · Washington 2026-05-26