Illinois compliance at a glance
- Sales tax: 6.25% state rate. Services largely exempt; combined rates up to ~11% in Chicago.
- Late fees: Up to 1.5% per month. (815 ILCS 205/4 (Interest Act)) Up to 9%/yr without writing; higher with written agreement.
- Written contracts: Required for jobs over $1,000.
- Prompt-pay law: Illinois Local Government Prompt Payment Act (50 ILCS 505); Building and Construction Contract Act (815 ILCS 603). Local gov: payment within 30 days. Construction: 15 days after prime contractor receives payment.