Illinois Contractor Sales Tax 2026
Impuesto sobre ventas para contratistas en Illinois 2026. ¿La mano de obra está gravada? ¿Los materiales? Reglas reales del departamento de ingresos estatal.
Illinois sales tax rate for contractors
- Combined rate: 6.25% + local (~8.8% combined avg)
- Construction labor taxable: NO - real property labor is exempt
- Tax authority: Illinois Department of Revenue
How Illinois treats contractor labor
Contractor pays Use Tax on materials. Real property labor exempt. Sale of TPP to customer is taxable retail sale.
Illinois-specific rules
Illinois has separate residential and commercial rules. Chicago has additional Home Rule and other taxes. Roofing requires state license; general contractor licensed at local level.
Illinois mechanics lien rights
Beyond sales tax, Illinois contractor billing must respect the mechanics lien deadline of 4 months from last work (residential); 2 years to file suit. Preliminary notice: 60-day notice required from subcontractors on owner-occupied residential.
Illinois contractor licensing
Illinois Department of Financial and Professional Regulation (IDFPR) - required for licensed work. Varies by trade (plumbing $300, roofing $125). Board: https://www.idfpr.illinois.gov.
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