State Takes Feedback on Digital Ad Tax

Illinois officials are asking the public to weigh in on proposed rules for the state’s new digital advertising tax. The Illinois Department of Revenue has posted draft guidance for a 10-percent tax on gross receipts from targeted advertising services. The measure is already facing a legal challenge from internet industry group NetChoice, which sued in September, arguing the tax violates First Amendment protections. The department says comments on the proposed rules will be accepted through 5 p.m. on November 30th, 2026, through its website at tax.illinois.gov. The tax is currently set to take effect January 1st, 2027.