NSNexus by State

Illinois vs Wisconsin Sales Tax Nexus — Comparison 2026

Updated

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

MetricIllinoisWisconsin
Economic nexus threshold$100,000$100,000
Transaction thresholdNoneNone
State rate6.25%5.00%
Avg. local rate2.71%0.72%
Combined state + local8.96%5.72%
Marketplace facilitatorYesYes
Effective since2026-01-012021-02-20

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: Wisconsin is friendlier for customers with a combined state + local rate of 5.72% 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.

Wisconsin — nexus note

Wisconsin sales tax nexus and economic nexus threshold: remote sellers without Wisconsin physical presence generally must register, collect, and remit Wisconsin sales or use tax when gross sales into Wisconsin exceed $100,000 in the previous or current calendar year. Wisconsin eliminated its former 200-transaction test effective February 20, 2021 under 2021 Wis. Act 1, so the current small-seller exception is sales-only. The annual gross-sales test includes taxable and nontaxable Wisconsin sales, sales the remote seller makes on behalf of other sellers, and marketplace-provider sales made on the remote seller's behalf. Effective January 1, 2020, marketplace providers collect and remit Wisconsin sales or use tax on all taxable products and services they facilitate for marketplace sellers; a remote marketplace seller is generally not liable for marketplace-facilitated Wisconsin tax, but it still tests the $100,000 exception using both direct and facilitated Wisconsin sales and must collect on taxable Wisconsin sales outside a collecting marketplace if it does not qualify for the exception. Registered remote sellers must collect applicable county, city, and premier resort area taxes where they apply, and Wisconsin assigns filing frequency from registration information and annual taxable sales. Wisconsin DOR source data last retrieved 2026-05-28.

What to do next

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

Illinois overview →Wisconsin overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Illinois or Wisconsin?
Both Illinois and Wisconsin 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 2026-05-28; confirm against the official source before registering.
Do both Illinois and Wisconsin have marketplace facilitator laws?
Yes. Both Illinois and Wisconsin 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 2026-05-28.
Which has the lower sales tax rate, Illinois or Wisconsin?
Wisconsin has the lower combined state and local sales tax rate at 5.72%, 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 2026-05-28.
Do I need to register for sales tax in both Illinois and Wisconsin?
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 Wisconsin'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 2026-05-28.
When did economic nexus take effect in Illinois and Wisconsin?
Illinois's economic nexus rule took effect on 2026-01-01, and Wisconsin's took effect on 2021-02-20. 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 · Wisconsin 2026-05-28