Illinois Seeks Input on Targeted Ad Tax

The Illinois Department of Revenue has posted draft rules for a new tax on targeted advertising services, ahead of its planned start date.

Updated on Nov. 2, 2026 in Advertising

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The Illinois Department of Revenue has posted draft rules implementing the Targeted Advertising Services Tax Act and is seeking industry input before formal rulemaking begins. The tax imposes a levy on providers' gross receipts from targeted advertising services provided in Illinois.

Why it matters

The department says the targeted advertising industry is complex and may involve a large number of affected entities, so it is seeking feedback to clarify the rules. Early input could shape how the tax is applied to providers operating in the state.

The Illinois Department of Revenue has set January 1, 2027 as the effective date for the tax on gross receipts from targeted advertising services. The final rules remain unsettled, and the department has not yet identified how many providers will be subject to the levy.

The players

Illinois Department of Revenue

The state agency responsible for administering Illinois tax laws, including the new targeted advertising services tax.

The details

The Illinois Department of Revenue published draft rules implementing the Targeted Advertising Services Tax Act, which was established under Public Act 104-0468. The draft rules are available for public review on the department's website as it gathers industry feedback before the formal rulemaking process.

January 1, 2027: The targeted advertising services tax takes effect.

Industry Landscape

The draft rules are the implementation phase of the Targeted Advertising Services Tax Act under Public Act 104-0468, which set the levy on provider gross receipts. The department's request for industry input precedes formal rulemaking ahead of the January 1, 2027 effective date.

Advertising providers offering targeted services in Illinois will owe tax on their gross receipts once the law takes effect. Businesses that buy these services may see the cost reflected in pricing as providers adjust to the new levy.

The takeaway

Affected advertising providers and businesses should watch the Illinois Department of Revenue's posted draft rules and consider submitting feedback before the rules are finalized ahead of the January 1, 2027 start date.