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Illinois Service Occupation Tax Changes for Servicepersons and Marketplace Facilitators

The Illinois Department of Revenue has issued guidance detailing changes to the Service Occupation Tax effective January 1, 2026. The bulletin clarifies that the 200-transaction threshold will be removed for out-of-state servicepersons and marketplace facilitators, and introduces destination-based sourcing for certain sales of service. These changes are outlined in Public Act 104-0006.

Motor Fuel Use Tax Rate Change

The Illinois Department of Revenue has announced changes to the Motor Fuel Use Tax rates, effective January 1, 2026, through June 30, 2026. These updated rates apply to all International Fuel Tax Agreement (IFTA) licensees operating in Illinois.

Illinois Film Production Withholding Tax Changes

The Illinois Department of Revenue has issued guidance clarifying changes to film production withholding income tax requirements. Beginning December 12, 2025, both production companies and loan-out companies have specific responsibilities for withholding, reporting, and remitting Illinois income tax on compensation for services performed in the state.

Illinois Tax Filings Affected by USPS Postmark Changes

The Illinois Department of Revenue (IDOR) issued a notice regarding changes to United States Postal Service (USPS) postmarks that could impact the timely filing of Illinois tax returns and payments in 2026. Taxpayers are advised to file and pay electronically or mail returns earlier to avoid late penalties.