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Avalara Help Center

Why is software taxable in Illinois?

Overview

I believe that software could be non taxable according to what I have read on the Illinois website,  however Avalara treats software as taxable, why is that?

Environment

Avalara Avatax

Resolution

There are criteria for software to be non-taxable in Illinois, however Avalara errs on the side of caution so our tax codes are taxable. If you wish to make them non-taxable for your specific case then you are welcome to do so with custom rules.