New York vs Illinois Sales Tax Nexus — Comparison 2026
Compare economic nexus thresholds, state and local rates, and filing rules in New York and Illinois.
| Metric | New York | Illinois |
|---|---|---|
| Economic nexus threshold | $500,000 | $100,000 |
| Transaction threshold | 100 | None |
| State rate | 4.00% | 6.25% |
| Avg. local rate | 4.52% | 2.87% |
| Combined state + local | 8.52% | 9.12% |
| Marketplace facilitator | Yes | Yes |
| Effective since | 2019-06-24 | 2026-01-01 |
Which state is easier for sellers?
For low-revenue sellers: nexus triggers first in Illinois because of its $100,000 threshold. If you cross that first, you register there first.
On rate: New York is friendlier for customers with a combined state + local rate of 8.52% vs 9.12%.
New York also adds a 100-transaction trigger that Illinois doesn't have.
New York — nexus note
Economic nexus requires BOTH more than $500,000 in sales of tangible personal property AND more than 100 sales into New York in the prior four sales tax quarters. Unlike most states, New York uses AND logic — both thresholds must be met.
Illinois — nexus note
Economic nexus triggers at $100,000 in cumulative gross receipts in the preceding twelve-month period. Illinois also applies unique "retailer occupation tax" (ROT) sourcing rules on top of the base rate.
What to do next
Use the nexus calculator to check exactly which of New York and Illinois you've already triggered. Then read each state's full guide: