Illinois Resale Certificate 2026: Complete Guide to Form CRT-61

Illinois calls its resale certificate a Certificate of Resale, and the official form is CRT-61. But the sales tax system behind it is anything but simple. Illinois does not have a single "sales tax." Instead, it has four separate but related taxes that function together: the Retailers' Occupation Tax (ROT), Use Tax, Service Occupation Tax (SOT), and Service Use Tax. Add Chicago's additional tax layers on top, and you have one of the more complex state tax systems in the country.

This guide explains Form CRT-61, the four tax types, registration through the Illinois MyTax portal, contractor rules, Chicago-specific requirements, and everything else you need to purchase inventory tax-free in 2026.

Illinois Tax Rates in 2026

State Base Rate

Illinois' state sales tax rate (Retailers' Occupation Tax) is 6.25%. This base rate applies to general merchandise statewide.

Reduced Rates

Illinois applies reduced rates to certain categories:

• Qualifying food and drugs: 1% state rate
• Qualifying food prepared for immediate consumption: Subject to the full rate in most jurisdictions
• Vehicles: Subject to the full state rate plus local additions

Local Rates

Counties, municipalities, and special districts add their own taxes. Combined rates vary across the state:

Chicago has the highest combined rate at 10.25%, which includes the state ROT, Cook County taxes, Chicago's home rule municipal tax, the Regional Transportation Authority (RTA) tax, and the Chicago Transit Authority portion. On $100,000 in annual inventory purchases, a Chicago-area business saves $10,250 with a valid Certificate of Resale.

See your savings with our savings calculator.

Understanding Illinois' Four Tax Types

Illinois does not simply have one "sales tax." Understanding the four tax types helps you navigate the system correctly.

1. Retailers' Occupation Tax (ROT)

This is the primary tax, imposed on retailers for the privilege of selling tangible personal property at retail. It is the equivalent of what most states call "sales tax," but it is technically a tax on the seller.

Rate: 6.25% state, plus local additions

2. Use Tax

This is a complementary tax on the buyer for tangible personal property purchased from a retailer. It ensures that goods bought out of state (where ROT was not collected) are still taxed when used in Illinois.

Rate: 6.25% state, plus local additions

3. Service Occupation Tax (SOT)

Imposed on service providers who transfer tangible personal property as part of a service. For example, a repair shop that replaces parts as part of a service call is subject to SOT on the parts.

Rate: 6.25% state, plus local additions

4. Service Use Tax

The buyer's complement to the SOT. It applies to the use of tangible personal property transferred as part of a service.

Rate: 6.25% state, plus local additions

Why This Matters

When you fill out Form CRT-61, you are certifying that the goods you purchase are for resale and should not be subject to these taxes at the point of purchase. The certificate effectively exempts you from the ROT charged by your supplier, because you will collect the tax from the end consumer when you resell the goods.

Form CRT-61: Illinois' Certificate of Resale

Form CRT-61 is the official Illinois Certificate of Resale. It is the document you provide to your suppliers to purchase goods tax-free for resale.

Required Information on CRT-61

• Purchaser's name, address, and telephone number
• Illinois Registration Number (IBT number) or Resale Number: Your state-issued registration number
• Description of property being purchased: General description of goods
• How the property will be resold: Retail, wholesale, or as an ingredient/component
• Blanket or single-purchase certificate: You can issue CRT-61 as a blanket certificate covering all future qualifying purchases from that supplier, or as a single-purchase certificate for one transaction
• Signature and date: Must be signed by the purchaser or authorized representative

Important Notes

• Illinois does not accept out-of-state resale certificates. You must use the Illinois-specific CRT-61
• Illinois does not accept the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate
• Form CRT-61 does not expire as long as your Illinois registration remains active
• Suppliers must keep CRT-61 forms on file as proof of exempt sales

How to Register for an Illinois Sales Tax Account

Online Registration Through MyTax Illinois

The Illinois Department of Revenue (IDOR) handles registration through the MyTax Illinois portal.

Registration steps:

1. Visit MyTax Illinois at mytax.illinois.gov
2. Create an account
3. Select "Register a New Business"
4. Complete the registration application (Form REG-1, Illinois Business Registration Application)
5. Select the appropriate tax types you need to register for (Retailers' Occupation Tax, Use Tax, etc.)
6. Provide your Federal EIN, business structure, physical location, and expected sales
7. Submit the application

Processing time: Online applications are typically processed within 5 to 10 business days. Mailed applications can take 4 to 6 weeks.

Cost: Illinois charges a $25 registration fee for new businesses.

What You Receive

After registration, you receive:

• An Illinois Business Tax (IBT) number
• A Certificate of Registration confirming your tax obligations
• Authorization to collect tax and issue CRT-61 forms for resale purchases

What You Need to Register

• Federal EIN (or SSN for sole proprietors)
• Illinois Secretary of State registration (if applicable for your entity type)
• Business entity information
• Physical business address
• NAICS code for your business activity
• Estimated monthly taxable sales
• Bank account information for electronic payments

We handle the full Illinois registration process, including selecting the correct tax types and ensuring your application is complete.

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Chicago's Additional Tax Layers

Chicago deserves its own section because the city adds multiple tax components that push the combined rate to 10.25%.

Chicago-Specific Taxes

What This Means for Businesses

If you buy or sell in Chicago, you deal with the highest combined rate in the state. Your CRT-61 exempts you from all of these components when purchasing for resale. But when you sell at retail, you must collect and remit the full 10.25% from your customers.

Chicago Use Tax on Non-Titled Personal Property

Chicago also imposes a separate Use Tax on Non-Titled Personal Property at a rate of 1% on items purchased from outside Chicago and used within the city. This applies to items bought out of state or from non-Chicago retailers. If you are a Chicago-based business buying goods from out-of-state vendors, this use tax may apply to items you consume (not items for resale).

What Qualifies for the Resale Exemption?

Qualifying Purchases

• Tangible personal property for resale: Products you will sell to customers
• Raw materials and components: Items incorporated into a finished product for sale
• Packaging materials: Containers, boxes, and wrapping used to package goods for sale
• Ingredients: Food ingredients purchased by restaurants for meals they sell
• Items for demonstration that will ultimately be sold: Demo models that will be sold to customers

Non-Qualifying Purchases

• Office supplies, furniture, and equipment: Consumed by your business
• Tools and machinery: Used in operations
• Fixtures, signage, and displays: Store equipment
• Vehicles for business use: Company vehicles (unless you are a dealer)
• Free samples and promotional items: Given away, not sold
• Consumables used internally

The "Primary Purpose" Test

If you purchase an item with the primary purpose of reselling it, the resale exemption applies even if you briefly use, display, or demonstrate it first. But if the primary purpose is business use, and you later decide to sell it, the original purchase does not qualify retroactively for the exemption.

How Illinois Treats Contractors

Illinois treats construction contractors as the end consumer of materials they incorporate into real property improvements.

The General Rule

• Contractors pay sales tax (ROT) on materials at the time of purchase
• Contractors do not separately charge customers sales tax on installed materials
• Form CRT-61 cannot be used for materials that will be permanently installed into real property

The Service Occupation Tax Connection

When a contractor provides both labor and materials as part of a service, the Service Occupation Tax (SOT) applies to the tangible personal property transferred as part of that service. In practice, for contractors, this means the tax is built into the purchase price of the materials.

Exceptions

1. Retail sales of materials (not installed) If you sell building materials at retail without installation, those purchases qualify for the CRT-61 resale exemption.

2. Manufacturers and fabricators If you fabricate items at your shop and sell them (for example, custom metal work sold to customers), the fabrication qualifies as manufacturing, and the raw materials can be purchased with a CRT-61.

3. Temporary installations Items that remain tangible personal property (not permanently affixed to real estate) may qualify differently. The distinction between "personal property" and "real property improvement" is critical.

Practical Example

A general contractor in Chicago:

For more on contractor rules, see our construction materials sales tax guide.

Filing Requirements After Registration

Filing Frequency

IDOR assigns filing frequency based on your tax liability:

How to File

File through MyTax Illinois at mytax.illinois.gov. Returns for state and most local taxes are filed together.

Due Dates

Monthly returns are due on the 20th of the month following the reporting period. Quarterly returns follow the same pattern for their respective periods.

Common Mistakes to Avoid

Mistake 1: Using an Out-of-State Certificate

Illinois does not accept certificates from other states or the MTC Uniform Certificate. If an out-of-state buyer hands you their home state's certificate, it is not valid in Illinois. They need to provide a CRT-61.

Mistake 2: Confusing the Four Tax Types

The ROT, Use Tax, SOT, and Service Use Tax are four separate taxes. Understanding which applies to your transactions ensures you file correctly. Most retail businesses primarily deal with the ROT.

Mistake 3: Ignoring Chicago-Specific Obligations

If you operate in Chicago, you are subject to additional local taxes and the Chicago Use Tax. Treating Chicago the same as the rest of Cook County will result in under-collection and audit liability.

Mistake 4: Using CRT-61 for Items Given Away Free

Promotional items, free samples, and giveaways are consumed by your business. They do not qualify for the resale exemption, even if they support your sales efforts.

Mistake 5: Missing the Registration Fee

Illinois charges a $25 fee that must be paid as part of the registration process. Applications submitted without the fee will be delayed.

Record Keeping Requirements

Illinois requires businesses to maintain sales tax records for at least 4 years from the date the return was filed or was due, whichever is later.

What to Maintain

• Completed CRT-61 forms (given to suppliers and received from buyers)
• All sales tax returns and payment records (state and local)
• Invoices, purchase orders, and receipts
• Registration and IBT number documentation
• Records separating resale purchases from business-use purchases

Get Your Illinois Resale Certificate

Illinois' multiple tax types, the CRT-61 requirement, and Chicago's additional layers make proper registration important. We handle the full process through MyTax Illinois, ensuring you are registered for the correct tax types and ready to issue CRT-61 forms.

Get Your Resale Certificate -->

For full details on Illinois' requirements, visit our Illinois state page.

Illinois may have four different tax names for what most states call "sales tax," but the end result is the same: registered businesses can purchase goods for resale without paying tax at the point of purchase. Register through MyTax Illinois, use Form CRT-61 with your suppliers, and keep your records organized.

Related Articles

• What Is a Resale Certificate? - Understand the fundamentals before diving into Illinois' multi-tax system.
• Resale Certificate for Contractors and Construction - See how Illinois' contractor rules compare to other states.
• Sales Tax Exemption Forms: Complete Guide - Find Form CRT-61 and compare it to forms used in every other state.