Illinois alcohol tax permits and rules

DTC License Required: Yes

License Type: DTC Permit

License Fee: $350–$1,500 initial permit

License Expiration: 1 year from issue date

License Bond: Yes

License Notes: N/A

State Sales Tax: Yes

State Sales Tax Rate: 6.250%

Local Sales Tax: Yes

Local Sales Tax Range: 0%-4.75%

Sales Tax on Shipping: Yes, but wineries offering the option to purchasers to pick up the wine at the winery/tasting room are exempt from charging taxes on shipping.

Liquor Direct Wine Shipper Excise Tax: $1.39-$8.55/gal

Consumer Limit: 12 cases per year per consumer

Per State Aggregate: Unlimited

Required? Yes

Sales Tax: Monthly by the 15th

Use Tax: N/A

Excise Tax: Monthly by the 15th

Direct Shipment: N/A

Record Retention: At least 3 years

Product Restrictions: Only wines produced by the permittee may be sold and shipped to consumers.

Product Registration: Labels approved for wholesale distribution must be resubmitted and approved for direct-to-consumer sales.

Registration Fees: No fee

Product Requirements: None

*Nearly all states have some kind of rule regarding how wine must be labeled when being shipped direct to consumer. Please check for the unique rule for your state.

Tax can get complicated when it comes to direct-to-consumer (DTC) shipments. The beverage alcohol industry is different from other industries in that licensed alcohol shippers are required to register for sales tax in most states, independent of economic or physical nexus.

Depending on the state, sales and use tax can be applied at the state, county, city, or special district levels. Address accuracy is important to determine if a location falls into an incorporated or unincorporated section of a county or a special district.

On top of the sales tax requirements, alcohol taxes also apply to DTC shipments. Several states have “markup” taxes, where the retail value of the alcohol is multiplied by a percentage rate. Most of these markup taxes are either required or can be passed through to the consumer. 

Traditional “gallonage”-based excise taxes are also usually due on DTC shipments. Most of the time these are factored into the price of the item and not passed through to the consumer. In a few cases, these excise taxes are required to be passed on to the consumer. 

Rules and regulations for your winery, brewery, or other beverage alcohol business change frequently. Avalara for Beverage Alcohol helps distill the beverage alcohol compliance process so you can focus on your business.

Illinois DOR site

Please note: Tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this page is for informational purposes only and does not provide legal or tax advice.