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Simplified Municipal Telecommunications Tax Rates

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Summary

The Illinois Department of Revenue issued bulletin FY 2026-19 informing telecommunications service providers of new Simplified Municipal Telecommunications Tax rates effective July 1, 2026. Carlyle's combined rate increases from 8.65% to 13.65%, while Danvers' combined rate increases from 8.65% to 14.65%. The state rate remains fixed at 8.65% with local additions of up to 6.00%.

What changed

Effective July 1, 2026, two Illinois municipalities are implementing new Simplified Municipal Telecommunications Tax rates. Carlyle will have a local rate increase of 5.00%, bringing the combined rate to 13.65%. Danvers will have a local rate increase of 6.00%, bringing the combined rate to 14.65%. Both municipalities previously charged only the state rate of 8.65%. The changes are authorized under 35 ILCS 636/5-20(a)(2).

Telecommunications providers operating in Carlyle or Danvers should verify the new rates using the MyTax Illinois Tax Rate Finder at mytax.illinois.gov and update their tax calculation systems before July 1, 2026 to ensure accurate billing and compliance with the new combined rates.

What to do next

  1. Verify telecommunications tax rates for Carlyle and Danvers using MyTax Illinois Tax Rate Finder
  2. Update tax calculation systems and billing software with new combined rates effective July 1, 2026
  3. Ensure compliance with combined state and local telecommunications tax rates of 13.65% (Carlyle) and 14.65% (Danvers)

Archived snapshot

Apr 7, 2026

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Employment Sign Up for Updates

FY 2026-19
April 2026

David Harris, Director

This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.

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English

FY 2026-19, Simplified Municipal Telecommunications Tax Rate Changes Effective July 1, 2026

To: All persons who, in the ordinary course of business, provide telecommunications service

Effective July 1, 2026, the following municipalities are imposing a Simplified Municipal Telecommunications Tax rate. (35 ILCS 636/5-20(a)(2))

The chart below outlines the combined State and local telecommunications tax rate for each municipality listed. The combined rate is the State Telecommunications Excise Tax rate of 8.65 percent (.0865) plus the local Simplified Municipal Telecommunications Tax rate of up to a maximum rate of 6.00 percent (.06) outside Chicago.

To verify your telecommunications tax rates (i.e., State and local telecommunications taxes) go to the MyTax Illinois Tax Rate Finder at mytax.illinois.gov and select rates for July 2026.

| Simplified Municipal Telecommunications Tax Rate Change | | | |
| --- | | | |
| Municipalities | Combined Rate Ending
June 30, 2026
| Local Rate
Change Effective
July 1, 2026
| Combined Rate
Beginning
July 1, 2026
|
| Carlyle | 8.65% | +5.00 | 13.65% |
| Danvers | 8.65% | +6.00 | 14.65% |
Printed by authority of the State of Illinois - Electronic only, One copy

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Simplified Municipal Telecommunications Tax Rate Change

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Last updated

Classification

Agency
IDOR
Published
April 1st, 2026
Compliance deadline
July 1st, 2026 (83 days)
Instrument
Notice
Legal weight
Non-binding
Stage
Final
Change scope
Minor
Document ID
FY 2026-19

Who this affects

Applies to
Telecommunications firms
Industry sector
5170 Telecommunications
Activity scope
Telecommunications Tax Compliance
Geographic scope
Illinois US-IL

Taxonomy

Primary area
Taxation
Operational domain
Compliance
Topics
Telecommunications Local Government

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