Illinois Marketplace Facilitator & Sales Tax Rules 2025: What Resellers Must Know

A marketplace facilitator is defined as a platform that lists or makes available for sale tangible personal property of third-party sellers, and either processes payments or helps facilitate payments, etc. TaxJar+2Illinois Department of Revenue+2
Examples include Amazon, Etsy, Walmart Marketplace, eBay. These platforms are required to collect and remit Illinois sales tax on sales made through their marketplaces when certain thresholds or conditions are met. TaxJar+2Galvix+2

Illinois requires marketplace facilitators to begin collecting when they exceed $100,000 in gross sales in Illinois ormake 200 or more separate transactions into Illinois during the preceding 12 months. TaxJar+2Galvix+2
These thresholds apply for determining whether the marketplace facilitator has a remittance obligation for marketplace-facilitated sales in Illinois. TaxJar
Importantly, in recent discussions, Illinois is dropping / modifying aspects of transaction-count thresholds or simplifying rules in some contexts. E.g., there’s been talk of removing the transaction threshold or offering simplified reporting/rates for remote retailers under certain legislative changes. Avalara+2TaxJar+2

For determining whether a marketplace facilitator meets the threshold, sales for resale and sales of property that must be registered (motor vehicles, watercraft, etc.) are excluded. TaxJar+1
Other exempt or non-taxable sales might not be excluded from threshold computation, depending on statute; many non-exempt sales still count even if tax isn’t collected (unless statutorily excluded). TaxJar

If the marketplace facilitator meets the threshold, it is responsible for collecting & remitting Illinois retailers’ occupation tax on sales made through the marketplace on third-party sellers. TaxJar
Marketplace sellers generally do not need to collect tax on facilitated marketplace orders once the marketplace is collecting and remitting. However, for their own direct sales (e.g. via their own website, or in-person), if they meet nexus (economic or physical), they must collect tax. TaxJar+1

Illinois changed sourcing rules effective January 1, 2025: sales are sourced based on the destination (where the product is delivered or possession taken) for remote retailers or out-of-state sellers, including marketplace situations in many cases. Avalara+1
Inventory stored in Illinois can create physical presence nexus for a seller or facilitator. If you store inventory in Illinois—even if only for marketplace orders—this may require registering and collecting tax under origin or destination sourcing rules depending on how inventory is used. Illinois Department of Revenue

As of mid-2025, Illinois passed HB 2755, which includes a tax amnesty program and offers simplified reporting/tax rate options for remote retailers. This may affect how some remote sellers are taxed or simplify their obligations. Avalara
Also, changes to lease tax: leases of tangible personal property are more clearly taxed under the Retailers’ Occupation Tax for lessors (people leasing property) effective January 1, 2025. These changes intersect with marketplace facilitated sales or sellers who lease goods as part of their business model. CBH+2Illinois Department of Revenue+2

Case Study: Example Reseller Scenarios

Here are a few hypothetical examples to illustrate how the above rules affect real resellers:

Scenario	What happens under IL Law 2025
A seller only uses Amazon & Etsy (marketplaces), and they do not meet the $100,000 sales or 200 transaction threshold	The marketplace facilitator would handle tax collection on those facilitated sales once the facilitator meets those thresholds. The seller may not need a separate permit just for marketplace sales. However, if they plan to expand or do direct sales, they should keep records.
Seller uses own website + marketplace, with direct sales of $120,000 plus marketplace-facilitated sales	Seller likely hits economic nexus via own direct sales. They need to register for IL tax permit (Retailers’ Occupation Tax), begin collecting tax on direct (non-marketplace) sales, ensure marketplace is collecting on marketplace sales. Also ensure sourcing/destination rules are applied properly.
Seller stores inventory in Illinois but ships from there only for marketplace orders	Having inventory in IL creates more risk: this may establish physical presence, triggering requirement to remit occupancy tax, source sales appropriately, and follow state & local tax rules. The seller should carefully assess whether their usage of inventory triggers nexus.

Here’s a checklist to ensure compliance:

Review your sales over past 12 months including both direct and marketplace-facilitated sales. See if you cross $100,000 or 200 transactions.
Check whether you store any inventory in Illinois. If yes, understand how that creates nexus or sourcing obligations.
If you meet thresholds, register with the Illinois Department of Revenue for a Retailers’ Occupation Tax account.
Ensure your checkout systems (website, etc.) are updated to collect state & local tax rates based on delivery/destination.
If you sell via marketplace, confirm that the marketplace is collecting & remitting IL sales tax on your behalf (and get documentation).
Keep excellent records for exempt/resale transactions (with resale certificates), and for inventory locations, shipping details.
If eligible, evaluate whether the simplified reporting under HB 2755 or the tax amnesty program is beneficial.
Monitor legislative updates or guidance bulletins from the Illinois Department of Revenue to catch any changes in sourcing or thresholds.

Does Illinois still require 200 transactions threshold? As of mid-2025, yes—it remains one of the benchmarks alongside the $100,000 sales threshold, though there are proposals/discussions about phasing it out or simplifying. TaxJar+2accountants.sva.com+2
Are marketplace sales included in threshold calculation? It depends: for marketplace facilitators, yes; for marketplace sellers, only if the marketplace is not collecting on their behalf. If the marketplace is collecting, those marketplace sales may be excluded for the seller in terms of threshold. TaxJar+1
What about local tax rates? Illinois has many local jurisdictions with their own municipal/county tax rates that must be collected when applicable based on where the sale is delivered or where possession is taken. Sourcing rules are destination-based starting 2025 for many kinds of remote sales. Illinois Department of Revenue+1