This 2025 guide to Peoria sales tax breaks down important sales tax rates, exemptions, tax changes, and filing deadlines for Illinois businesses selling in Peoria or out-of-state businesses selling to customers in Peoria.
For more general info on Illinois sales tax, take a look at our 2025 Illinois Sales Tax Guide.
In 2025, Peoria, Illinois, imposes a total sales tax rate of 9.00% for most of the city, comprising state, county, and city taxes. However, certain areas within Peoria may have additional special taxing districts, leading to variations in the total sales tax rate, with some locations reaching up to 10.00% due to special district taxes.
Tax Component | Rate |
---|---|
Illinois State Tax | 6.25% |
Peoria County Tax | 1.00% |
Peoria City Tax | 1.75% |
Total Sales Tax Rate | 9.00% |
As of February 2025, the sales tax rate in Peoria, Illinois, varies depending on the specific location within the city due to additional special district taxes in certain areas.
Area | Total Sales Tax Rate | State Tax | County Tax | City Tax | Special District Tax |
---|---|---|---|---|---|
General Peoria | 9.00% | 6.25% | 1.00% | 1.75% | 0.00% |
Hospitality Improvement Zone | 10.00% | 6.25% | 1.00% | 1.75% | 1.00% |
To learn more about Illinois sales tax on clothing, take a look at Kintsugi's easy guide: Does Illinois Have Sales Tax on Clothing in 2025? Key Information for Businesses.
The sales tax on restaurant and tavern purchases in Peoria, IL, varies based on location within the city. The Hospitality Improvement Zone applies to select areas within Peoria, where an extra 1% tax is collected to support local business development.
Tax Component | Rate |
---|---|
Illinois State Tax | 6.25% |
Peoria City Tax | 1.75% |
Peoria County Tax | 1.00% |
Additional City Tax | 2.00% |
Total Sales Tax | 11.00% |
Tax Component | Rate |
---|---|
Illinois State Tax | 6.25% |
Peoria City Tax | 1.75% |
Peoria County Tax | 1.00% |
Hospitality Improvement Zone Special Tax | 1.00% |
Additional City Tax | 2.00% |
Total Sales Tax | 12.00% |
For the most accurate and up-to-date information, consider using Kintsugi's sales tax automation platform and integrations or consult the Illinois Department of Revenue or the City of Peoria's official website.
To learn more about Illinois sales tax on SaaS and digital products, take a look at Kintsugi's easy guide: Is SaaS Taxable in Illinois? Key Insights for Tech Companies.
A retailer in Peoria, Illinois, sells an item priced at $500. The total sales tax rate is 9%, comprising state, county, and city taxes. A customer purchasing a $500 item in Peoria would pay $45.00 in sales tax, bringing the final total price to $545.00.
Tax Type | Rate | Calculation | Tax Amount |
---|---|---|---|
Illinois State Tax | 6.25% | $500 × 6.25% | $31.25 |
Peoria County Tax | 1.00% | $500 × 1.00% | $5.00 |
Peoria City Tax | 1.75% | $500 × 1.75% | $8.75 |
Total Combined Tax | 9.00% | $31.25 + $5.00 + $8.75 | $45.00 |
Final Total Price | $500 + $45.00 | $545.00 |
The standard sales tax rate in most areas of Peoria is 9.00%, which includes the Illinois state tax of 6.25%, Peoria County tax of 1.00%, and Peoria city tax of 1.75%.
However certain districts, such as the Hospitality Improvement Zone, impose an additional 1.00% special district tax, bringing the total to 10.00% in those areas.
The sales tax on restaurant and tavern purchases in Peoria, IL, varies based on location within the city. See the table above for more detailed info.
The Hospitality Improvement Zone applies to select areas within Peoria, where an extra 1% tax is collected to support local business development.
Apply online through the MyTax Illinois website. You'll need business details, an EIN or SSN, and there is no registration fee.
You must register before making taxable sales or meeting the economic nexus threshold ($100,000 in sales or 200 transactions).
In Illinois, the economic nexus threshold is $100,000 in gross sales or 200 separate transactions in the state within the previous 12 months.
No, Illinois is not part of the Streamlined Sales Tax (SST) program. Businesses must ensure compliance with the state’s independent sales tax rules and registration process.
In Illinois, tangible personal property includes physical items that can be seen, weighed, measured, or touched, such as furniture, electronics, clothing, and vehicles. Some digital goods are also taxable.
In Illinois, sales tax returns are due monthly, quarterly, or annually, based on sales volume, in accordance with state legislation. Monthly returns are due by the 20th of the following month.
To learn more about Illinois sales tax exemptions, take a look at Kintsugi's easy guide: How 2025 Illinois Sales Tax Exemption Benefits Your Business.
Sales tax collection in Peoria is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Peoria.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Illinois.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
In Peoria, Illinois, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like Leases and Rentals Motor Vehicles, Leases and Rentals Tangible Media Property, Machinery, Raw Materials, Newspapers, Periodicals, General Occasional Sales, Motor Vehicles Occasional Sales, General Optional Maintenance Contracts, General Trade-Ins. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://tax.illinois.gov/research/taxinformation/sales/rot.html.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://tax.illinois.gov/research/taxinformation/sales/rot.html by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Businesses in Peoria often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
Looking for sales tax rates and compliance details for other cities in Illinois? Check out our comprehensive table of sales tax information for cities across the state in the table below
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