Illinois tobacco distributor tax bonds.
From $100.
An Illinois tobacco products distributor files a tax bond with the Department of Revenue under the Tobacco Products Tax Act of 1995 (35 ILCS 143), backing the tax that becomes due. The amount runs up to three times your average monthly liability, capped at $50,000 — pricing starts from $100, and no credit check up to $10,000.
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How much does an Illinois tobacco distributor tax 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 tobacco tax bond — enter your amount, pay, and file with the Department of Revenue. Here is the whole thing:
Apply online
Your business details, the bond amount the state set, and the effective date — that is the application.
Issued on the spot
No credit check up to $10,000. Most bonds issue instantly upon payment.
File with the Department of Revenue
Submit the executed bond so IDOR issues your tobacco products distributor license. Wet-ink originals mailed whenever the state insists on them.
What it is and who needs it.
What the tobacco tax bond actually covers
Illinois taxes tobacco products — cigars, smokeless tobacco, pipe tobacco, and similar products other than cigarettes — under the Tobacco Products Tax Act of 1995 (35 ILCS 143). A licensed distributor remits the tax to the Department of Revenue, and the Department requires a bond to secure it.
By statute the bond amount is one that protects the State against the distributor’s failure to pay — not to exceed three times the average monthly tax liability, or $50,000, whichever is lower. So the bond scales with your volume but never exceeds $50,000.
The bond is not required if you’re already a licensed Illinois cigarette distributor (that program carries its own security). Otherwise, enter the amount IDOR named and we issue the bond starting from $100 — no credit check up to $10,000 — it backs the State, not you.
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 so IDOR issues your tobacco products distributor license. Wet-ink originals mailed whenever the state insists on them.
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 IDOR set — the executed tobacco tax bond is generated instantly, ready to file.
Start the application →Common questions.
Other Illinois bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Tobacco tax bond, issued today.
Pricing from $100. Enter the amount IDOR set and file the same day.