Polish online stores, accounts on Etsy or Amazon, and small service businesses that ship goods to Illinois—including the large Polish-American community in Chicago and the surrounding areas—are settling accounts with the local tax authority under new rules starting this year. The Illinois Department of Revenue (IDOR) has changed the definition of a “remote seller” and at the same time opened a window to voluntarily settle past dues before the agency collects them on its own initiative.
What changed on January 1, 2026
Until the end of 2025, a seller from outside Illinois had to collect and remit the local sales tax (Retailers’ Occupation Tax) if they exceeded one of two thresholds during a 12-month reporting period: $100,000 in revenue from sales to Illinois or 200 separate transactions. According to Public Act 104-0006 and IDOR Information Bulletin (FY 2026-12), starting January 1, 2026, the transaction threshold is no longer in effect. Only revenue matters—$100,000 or more in the reporting period.
This is a favorable change for small sellers who had many cheap, individual orders: a crafter selling keychains on Etsy for $15 could previously exceed 200 transactions and formally be subject to tax in Illinois, despite having revenue of just a few thousand dollars. Today, such a business does not need to register until it exceeds $100,000 in revenue from Illinois. IDOR reports that businesses that previously registered solely because of the transaction threshold should check their sales for the period up to December 31, 2025—if they did not reach $100,000, the agency automatically switches their status to “voluntary use tax” and they stop charging remote sales tax as of January 1, 2026.
Who is affected by the change
The regulation covers “remote retailers”—businesses without a physical presence in Illinois that ship goods to customers in this state—and “marketplace facilitators,” meaning platforms like Amazon, Etsy, or eBay that collect and remit tax on behalf of sellers. For most Polish sellers using such platforms, the obligation to calculate the tax is transferred to the marketplace anyway; the change mainly applies to those who run their own online store (Shopify, WooCommerce) and settle accounts directly with customers in Illinois.
Amnesty program until October 31, 2026
Concurrently, IDOR launched the 2026 Illinois Remote Retailer Tax Amnesty Program—a one-time opportunity to settle overdue sales tax for the period from January 1, 2021, to June 30, 2026, without penalties and without interest. The program runs from August 1 to October 31, 2026, and is intended for remote sellers without a physical presence in Illinois who met the $100,000 threshold but never registered or have past due taxes.
Applications are submitted electronically through the MyTax Illinois portal, using a single application covering all past due periods. IDOR also offers simplified flat rates for the duration of the amnesty: 9% for general merchandise and 1.75% for qualifying items (including take-out food, prescription, and over-the-counter drugs). A business that is not yet registered with IDOR must first set up an account—the agency recommends doing this well in advance, as account registration and activation usually take a few business days, and the amnesty application must be submitted along with full payment (or an approved installment plan) by October 31, 2026, at the latest.
What to do right now
- Check sales to Illinois for the past 12 months—whether they exceed $100,000 in revenue (transactions no longer count).
- If the business previously registered only because of the 200 transactions and does not reach the revenue threshold—verify the status with IDOR and, if necessary, contact the Central Registration Division.
- If there are past due taxes from before 2026 (late registration, missing periods)—consider applying for the amnesty program before October 31, 2026, before the agency assesses penalties and interest on its own.
- Maintain records of the delivery address for every sale—starting in 2026, a lack of such data exposes you to a flat 15% rate during an audit.
This material is for informational purposes only and does not constitute tax or legal advice. It is recommended to verify tax obligations in a specific situation with an accountant or tax advisor familiar with Illinois regulations.
Polish accountants and advisors from the Polish Pages directory can help with settling online sales to various states and verifying tax obligations.
