Free template, Illinois tax rules built in
Free Illinois Invoice Template
Illinois taxes the sale of goods through its Retailers Occupation Tax but generally does not tax services. This template handles the split so your Illinois invoices charge tax only where they should.
Sales tax on invoices in Illinois
Rate: 6.25% state, plus local rates (Chicago combined is over 10%)
Illinois charges 6.25% state sales tax on tangible goods through what it calls the Retailers Occupation Tax, and local taxes stack on top. Chicago in particular pushes the combined rate above 10%. Illinois generally does not tax services, so a service-only invoice usually carries no sales tax. If you sell goods, charge the combined rate for the location.
What gets taxed: Goods are taxable. Most services are not taxed.
Rates and rules change. Confirm the current rate and what is taxable with your state tax authority before you file.
Contractor licensing in Illinois
Illinois licenses certain trades at the state level, including plumbers and roofing contractors, while other trades are licensed locally. Show your license number on the invoice if your trade requires one.
Sample Illinois invoice
Example for a job in Chicago, IL, showing how the tax line works when some items are taxable and some are not.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Service labor (not taxed in IL) | 7 | $80.00 | $560.00 |
| Parts and materials | 1 | $260.00 | $260.00 |
| Subtotal | $820.00 | ||
| Sales tax (10.25% on taxable items) | $26.65 | ||
| Total | $846.65 | ||
Tax is applied only to the taxable lines, which is the part most invoices get wrong. Build yours with the right tax handling in the free generator.
Make this invoice freeBy trade
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View templateNeed a blank one? Use the free invoice generator to build any IL invoice and download a PDF.
Invoice clients in Illinois, free.
WaffleInvoice sets your tax rate, calculates totals, sends the invoice, and tracks who has paid. Free for unlimited invoices.
Illinois invoice FAQs
Are services taxable in Illinois?
Generally no. Illinois taxes the sale of goods but not most services. A service-only invoice usually carries no sales tax. If you sell parts or materials, those goods are taxable.
What is the sales tax rate in Illinois?
The state rate is 6.25%, and local taxes add to it. Chicago pushes the combined rate above 10%. Use the combined rate for the location of the sale.
Do roofing or plumbing contractors need a license in Illinois?
Yes. Illinois licenses plumbers and roofing contractors at the state level, among other trades. Put your license number on the invoice when your trade requires it.