Illinois HB 2755: What Businesses Need to Know About New Sales-Tax Changes

On June 16, 2025, Governor Pritzker signed House Bill 2755 (FY 2026 Revenue Omnibus Act) into law. In addition to income tax changes, the bill introduces several important updates to Illinois’ sales and indirect taxes, impacting a wide range of businesses. Here’s a summary of the key provisions:

Sports Wagering Tax

Effective July 1, 2025

Licensed interactive sports-betting operators will now pay:

• $0.25 per wager on the first 20 million wagers annually

• $0.50 per wager on all additional wagers

Applies on a per-license basis

Telecom and Hotel Taxes

Effective July 1, 2025

• Telecom Excise Tax increased by 1.65%, with proceeds allocated to support the 9-8-8 mental health hotline

• Hotel Operators’ Occupation Tax expanded to include short-term rentals such as Airbnb and VRBO

Remote Retailer Nexus Threshold Updated

Effective January 1, 2026

• The 200-transaction threshold for remote sellers is eliminated

• The $100,000 gross receipts threshold remains, calculated on a rolling quarterly basis

Grocery Tax Repeal & Local Tax Option

Effective January 1, 2026

• The statewide 1% grocery tax is repealed

• Local governments may enact their own up to 1% grocery tax

Ordinances must be passed by October 1, 2025, to take effect January 1

Impacts traditional grocery retailers, online grocery services, and consumers