Changeflow GovPing Tax Simplified Municipal Telecommunications Tax Rat...
Routine Notice Added Final

Simplified Municipal Telecommunications Tax Rate Changes Effective July 1, 2026

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Summary

The Illinois Department of Revenue announces that effective July 1, 2026, select municipalities will impose a Simplified Municipal Telecommunications Tax. The combined rate consists of the State Telecommunications Excise Tax rate of 8.65 percent plus the local Simplified Municipal Telecommunications Tax rate of up to 6.00 percent outside Chicago.

What changed

Effective July 1, 2026, select Illinois municipalities will impose a Simplified Municipal Telecommunications Tax rate. The combined rate consists of the State Telecommunications Excise Tax at 8.65 percent plus a local component of up to 6.00 percent outside Chicago.

Telecommunications companies operating in affected Illinois municipalities should review their tax calculation systems and update compliance procedures to account for these new combined rates before the July 1, 2026 effective date.

What to do next

  1. Review the informational bulletin for affected municipalities
  2. Update tax calculation systems to account for combined rates
  3. Ensure compliance with new rates by July 1, 2026

Archived snapshot

Apr 8, 2026

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Back

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

News – Tuesday, April 7, 2026 print Email Effective July 1, 2026, select municipalities are imposing a Simplified Municipal Telecommunications Tax rate.

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.

See Informational Bulletin FY 2026-19, Simplified Municipal Telecommunications Tax Rate Changes Effective July 1, 2026 for more information.

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Last updated

Classification

Agency
IDOR
Published
July 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
Tax rate changes Telecommunications excise tax
Geographic scope
Illinois US-IL

Taxonomy

Primary area
Taxation
Operational domain
Finance
Topics
Telecommunications

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