Illinois stamp payment bonds.
From $100.
A licensed Illinois cigarette distributor can buy tax stamps on a 30-day deferred-payment basis, but the Department of Revenue requires a stamp payment bond standing behind those stamps until the tax is settled. The Department sets the amount. The price is 1% of the bond amount, $100 minimum.
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How much does an Illinois stamp payment bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard stamp bond at typical amounts — enter your amount, pay, and file. Here is the whole thing:
Apply online
Your business details, the bond amount the Department set, and the effective date — that is the application.
Issued on the spot
No credit check up to $10,000. Above $10,000, a soft pull may add a short review.
File with the Department of Revenue
Submit the executed bond to enable deferred stamp purchases on your distributor account. Wet-ink originals mailed whenever the state insists.
What it is and who needs it.
What the stamp payment bond actually covers
Illinois collects cigarette tax through tax stamps that a licensed distributor affixes to each pack. Under the Cigarette Tax Act (35 ILCS 130), a distributor can buy stamps on a 30-day deferred-payment basis rather than paying cash up front — purchasing stamps with a draft payable within 30 days.
Deferring payment means the state is owed tax on stamps already in the distributor's hands, so the Act requires a stamp payment bond. This bond is in addition to the basic distributor financial-responsibility bond, and it is sized to 80% of the distributor's average monthly tax liability for the preceding calendar year, capped at $500,000.
The bond guarantees the deferred tax gets paid. If the distributor fails to settle, the Department can recover against the bond, and if the surety pays, the distributor repays the surety. The Department releases the bond after the distributor stops doing business, files a final return, and clears its liability.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department of Revenue. Submit the executed bond to enable deferred stamp purchases on your distributor account. Wet-ink originals mailed whenever the state insists.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount the Department set — the executed bond is generated instantly at typical amounts, ready to file.
Start the application →Common questions.
Other Illinois bonds.
The same bond in nearby states.
Price and requirements checked on the carrier’s application, . Page updated .
Stamp payment bond, issued today.
From $100. Enter the amount the Department set and file the same day.