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Illinois sets your excise rate from the product's adjusted delta-9-THC level, which is delta-9-THC plus 0.877 times THCA, and from whether it is a cannabis-infused product. Add the general merchandise sales tax rate for your address, plus local cannabis tax of up to 6%.
Illinois calls marijuana tax and weed tax by one statutory term, cannabis tax.
| PRODUCT CLASS | PURCHASER EXCISE RATE | CONTROL POINT |
|---|---|---|
| Other than infused products, adjusted THC at or below 35% | 10% | Retain adjusted THC data. |
| Other than infused products, adjusted THC above 35% | 25% | Re-rate a product when the lab reports a new batch above 35%. |
| Cannabis-infused product | 20% | Rate concentrates and vape solutions on adjusted delta-9-THC. Illinois excludes anything intended for smoking from the infused category. |
Illinois sets these three rates at 410 ILCS 705/65-10, restated in Illinois Department of Revenue cannabis guidance. Illinois imposes a separate 7% cultivation privilege tax on the cultivator's first sale, so keep it out of the excise you collect at retail. If you hold both a dispensary and a grower license, you owe it and you file Form CC-1 alongside CD-1.
LOCATION CHECK Illinois caps local cannabis tax at 6% inside a municipality, where a municipality levies up to 3% and the county up to 3% on top, and at 3.75% in an unincorporated area. Municipalities and counties levy these on adult-use sales only, so you charge no local cannabis tax on a medical sale. Look up your address in the MyTax Illinois Tax Rate Database each April and October, when municipalities and counties file the ordinances Illinois puts into effect the following 1 July and 1 January.
Illinois lets you keep 1.75% of the tax due, capped at $1,000 a month on sales tax and $1,000 on the excise, and you forfeit both if you file or pay after the 20th. Send us your last four returns and we will tell you whether you have been claiming them.
Map each SKU to a product category, including paraphernalia, which Illinois taxes at the 6.25% general merchandise rate for medical and adult-use customers alike.
Separate medical and adult-use customers before tax calculation and reporting.
Load the correct jurisdiction rates for each dispensary and effective date.
Show the excise and your local cannabis tax as their own lines on the receipt, and compute each tax on the purchase price. Illinois keeps the excise out of the sales tax base, the sales tax out of the excise base, and your local cannabis tax out of the state base when you state it separately. Leave that line off and Illinois treats the tax as one you did not collect, so you pay state tax on it.
Match each tax layer in the POS to the deposit, the ledger, and the filed return.
We review registrations, locations, accounts, products, and open periods.
We build product and jurisdiction rules in the POS and books.
We compare receipts, taxable sales, tax collected, refunds, and deposits by location.
We file Form CD-1 by the 20th, or the next business day, report the same receipts on Form ST-1 with the cannabis deduction on Schedule A, track the accelerated payment dates, and retain confirmations.
Illinois requires you to file and pay electronically, and only a multi-site operator adds Schedule CD-2 and Schedule CD-3.
| PURCHASER | PRODUCT | EXCISE | SALES + LOCAL |
|---|---|---|---|
| Adult-use | ≤35% adjusted THC | 10% | General merchandise rate + local cannabis tax |
| Adult-use | >35% adjusted THC | 25% | General merchandise rate + local cannabis tax |
| Adult-use | Infused product | 20% | General merchandise rate + local cannabis tax |
| Medical | Qualifying medical sale | No cannabis excise | 1% state qualifying food and drug rate plus local |
They are hard working, fast, communicative, professional and their pricing is reasonable. We feel we are in such good hands with the team at Dimov!
Dimov Tax pairs sales tax filing with bookkeeping and builds your return from reconciled numbers. Send your dispensary locations, product catalog, medical and adult-use sales split, recent receipts and filed returns. For cross-state math, use the cannabis sales tax calculator.
