Illinois DOR Confirms Sales Taxability of Canned Software Sales

Nov. 28, 2025, 4:44 PM UTC

The Illinois Department of Revenue (DOR) issued a General Information Letter regarding the taxability of canned computer software sales. DOR confirmed that sales of canned computer software are taxable retail sales in Illinois, regardless of the means of delivery of the software. This applies even if the software is accessed without an initial license agreement, as DOR considers these scenarios to be taxable sales rather than non-taxable settlements. [Il. Dep’t of Revenue, IT-25-0010-GIL, 10/24/25]

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