Everything You Need to Know About Sales Tax in Aurora, IL

When running a business or managing personal finances, understanding sales tax in Aurora, IL is crucial. Whether you’re a small business owner, a local entrepreneur, or simply a resident, sales tax affects your day-to-day transactions. This blog will provide you with everything you need to know about sales tax in Aurora, IL—covering rates, rules, exemptions, compliance, and how businesses can stay on track.

What is Sales Tax in Aurora, IL?

Sales tax is a consumption tax imposed by the government on the sale of goods and certain services. In Aurora, Illinois, sales tax is a combination of:

• Illinois state sales tax

• County sales tax

• City of Aurora tax

• Special district taxes (if applicable)

This combined tax is what you pay at checkout when buying taxable goods or services in Aurora.

Current Sales Tax Rate in Aurora, IL

As of 2025, the total sales tax rate in Aurora, IL is 8.25%. This rate can vary slightly depending on the specific location in Aurora due to county differences (Aurora spans Kane, DuPage, Kendall, and Will counties). The breakdown is typically:

• Illinois State Sales Tax: 6.25%

• Local Aurora Sales Tax: 1.75%

• County & Special District Tax: 0.25%

That brings the total to 8.25%, but always double-check your business address because local county surcharges may apply.

What is Taxable in Aurora?

Not everything you buy in Aurora is subject to sales tax. The Illinois Department of Revenue (IDOR) provides detailed guidelines, but here are the key points:

Taxable Items:

• Tangible personal property (clothing, furniture, electronics, etc.)

• Prepared food and beverages

• Hotel accommodations

• Some services, depending on the type

Non-Taxable or Exempt Items:

• Most groceries (unprepared food)

• Prescription medications

• Medical appliances and equipment

• Certain government and nonprofit purchases

Knowing what is taxable helps businesses avoid charging customers incorrectly and ensures individuals are not overpaying.

Sales Tax for Businesses in Aurora

If you operate a business in Aurora, you are legally required to collect sales tax on all taxable goods and services. Here’s what you need to do:

1. Register for a Sales Tax Permit
   You must register with the Illinois Department of Revenue (IDOR) to get a sales tax permit before collecting sales tax.

2. Collect Sales Tax at Point of Sale
   Businesses must charge customers the correct combined sales tax rate based on their location in Aurora.

3. File Sales Tax Returns
   Depending on your business volume, you may need to file monthly, quarterly, or annually with IDOR.

4. Keep Accurate Records
   Maintain detailed transaction records to ensure compliance during audits.

Failure to comply can lead to penalties, fines, and even legal action.

Online Sales and Sales Tax in Aurora

With the rise of e-commerce, many Aurora businesses also sell online. Thanks to the Wayfair Decision (2018), remote sellers with “economic nexus” in Illinois are required to collect sales tax from Aurora customers if their sales exceed certain thresholds.

For Aurora residents shopping online, this means most large retailers now add the correct local sales tax at checkout. Smaller businesses selling into Illinois also need to comply if they meet state requirements.

Sales Tax Exemptions and Special Cases

Some organizations and transactions in Aurora are exempt from sales tax. Examples include:

• Nonprofit organizations: Certain 501(c)(3) nonprofits can make exempt purchases.

• Resale certificates: Businesses buying goods for resale can avoid paying sales tax.

• Manufacturing machinery: Some equipment purchased for manufacturing may qualify for exemptions.

If you’re unsure whether your business qualifies for an exemption, consult with a tax professional or IDOR.

How Sales Tax Affects Consumers in Aurora

For residents of Aurora, sales tax affects everyday purchases. Here’s what to keep in mind:

• Buying a $1,000 laptop will cost an additional $82.50 in sales tax.

• Dining out at a $50 restaurant will add about $4.12 in tax.

• Shopping across county lines in Aurora may slightly change the tax rate depending on location.

Being aware of these costs helps you budget more effectively.

Common Mistakes Businesses Make with Sales Tax

Many small businesses in Aurora struggle with sales tax compliance. Common mistakes include:

1. Charging the wrong rate – especially for businesses near county borders.

2. Not filing on time – late filings can lead to hefty penalties.

3. Failing to separate exempt sales – nonprofits and resale certificates must be handled properly.

4. Not keeping records – audits can happen anytime, and poor recordkeeping makes compliance harder.

Avoiding these mistakes helps your business run smoothly and avoids unnecessary costs.

Why Professional Help Matters

Managing sales tax in Aurora, IL can be complicated. Between changing rates, exemption rules, and filing deadlines, many businesses struggle to stay compliant. That’s where professional accounting and bookkeeping services—like those offered by Koffex Accounting—can make a big difference.

Benefits of professional tax assistance include:

• Accurate sales tax calculation and collection

• Timely filing of returns

• Guidance on exemptions and special cases

• Peace of mind during audits

With expert help, you can focus on growing your business while staying compliant.

Final Thoughts

Understanding sales tax in Aurora, IL is essential for both businesses and consumers. From knowing the current rate (8.25%) to identifying taxable items, exemptions, and filing requirements, having the right knowledge saves you money and helps you stay compliant with state and local laws.

For businesses, accurate sales tax management is not optional—it’s a necessity. Whether you’re a local retailer, restaurant, or online seller, getting professional guidance ensures you avoid costly mistakes.

If you want stress-free tax compliance in Aurora, partnering with experts like Koffex can make all the difference