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Illinois: FY 2027 budget includes variety of tax measures

New taxes on certain digital services and changes to corporate net operating loss and pass-through entity tax rules

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June 9, 2026

The Illinois fiscal year (FY) 2027 budget (S.B. 3019), as passed by the General Assembly and presented to the governor for signature, includes a collection of both indirect and direct tax measures:

  • Introduction of tax on targeted advertising services, social media platform fee, and tax on certain digital asset transactions
  • Expansion of scope of activities subject to the sports wagering tax
  • Imposition of responsibility to collect certain accommodation taxes on hotel marketplace facilitators
  • Changes to current limitations on the utilization of net operating loss carryovers
  • New election requirement in the computation of pass-through entity tax

FY 2027 begins July 1, 2026, and the governor is expected to act prior to that date, including any line-item vetoes he wishes to make. He has generally spoken favorably of the measures.

Read a June 2026 report prepared by KPMG LLP

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