Illinois

Overview: Illinois lawmakers want to create a new tax on digital ads — and small businesses would pay the price.

Digital ads are one of the most cost-effective ways for small businesses to reach customers and grow. A new tax would raise small businesses’ costs, limit their reach, and make it harder to compete — all while they’re already dealing with enormous economic uncertainty.

Overview: Illinois lawmakers are considering a new retail delivery tax, which could add up to $1.50 to the cost of every retail order delivered to customers. The new tax would burden small businesses already struggling with inflation, supply chain disruptions, and economic uncertainty.

The Problem: Delivery taxes mean more red tape, new compliance headaches, and higher operating costs for small businesses — especially those that primarily sell online. A new Illinois delivery tax would force small businesses to either absorb the added expense, paring down already-thin margins, or pass it on to customers, risking reduced sales.

The Impact: For small businesses, the new tax would hinder growth and make it harder to compete with larger companies. For consumers who rely on affordable delivery services — particularly seniors, people with mobility challenges, and families juggling multiple jobs — a $1.50 tax on every delivery purchase would make it harder to access the goods they need.