Effective January 1, 2026, changes to the Service Occupation Tax will affect out-of-state service providers and marketplace facilitators who do business in Illinois. The 200-transaction threshold will be eliminated for both groups when they transfer tangible personal property to Illinois buyers as part of a service sale.
Additionally, service providers with a physical presence in Illinois will now be subject to destination-based sourcing for sales of services that would otherwise be sourced outside the state.
For further details, individuals are directed to review Informational Bulletin FY 2026-13, Service Occupation Tax Changes.
