Illinois sales tax adds a significant cost to nearly everything you buy in the state. The base state rate is 6.25%. However, local taxes from cities, counties, and special districts push that number much higher. The average combined rate across Illinois is 8.96%. That ranks among the highest in the nation. Whether you’re shopping in Chicago or downstate Springfield, understanding Illinois sales tax helps you budget smarter and avoid sticker shock at checkout.
Illinois Sales Tax Rate: The Basics
The state of Illinois charges 6.25% on most retail purchases. Local governments then add their own taxes on top. Counties, cities, and special taxing districts each take a slice. As a result, your total rate depends entirely on where you shop. The statewide average combined rate is 8.96%. That’s well above the national average of roughly 6.6% for state rates alone.
| Component | Rate |
|---|---|
| Illinois state rate | 6.25% |
| Average local add-on | 2.71% |
| Average combined rate | 8.96% |
| National average (state only) | ~6.6% |
In some parts of the state, you’ll pay only the base 6.25%. In others, the combined rate climbs above 10%. Specifically, Chicago and surrounding Cook County carry some of the steepest rates in the country. Before making a big purchase, check your local rate using a shopping guide or a zip code calculator online.
What Illinois Does and Does Not Tax
Illinois sales tax does not apply equally to everything. Some categories enjoy reduced rates or full exemptions. For example, prescription drugs and over-the-counter medicine are taxed at just 1%. That’s the state portion only, with no local tax added. In addition, groceries saw a major change in 2026.
As of January 1, 2026, Illinois eliminated the statewide 1% grocery tax. Qualifying food for home consumption now carries a 0% state tax rate. However, roughly 660 municipalities passed local ordinances to keep a 1% grocery tax. That means most Illinois shoppers still pay 1% on groceries. Candy, soft drinks, and prepared food do not qualify for the reduced rate.
| Category | Tax Rate | Notes |
|---|---|---|
| General merchandise | 6.25% + local | Clothing, electronics, furniture, etc. |
| Groceries (food at home) | 0% state + 1% local in most cities | State tax repealed Jan 2026 |
| Prescription drugs | 1% state only | No local tax |
| OTC medicine | 1% state only | No local tax |
| Prepared food / restaurants | 6.25% + local | Full rate applies |
| Candy and soft drinks | 6.25% + local | Not considered groceries |
| Clothing | 6.25% + local | Fully taxable — no exemption |
| Vehicles | 6.25% + local | Based on buyer’s address |
One important note for shoppers: clothing is fully taxable in Illinois. Unlike states such as Pennsylvania or New Jersey, there is no clothing exemption here. Budget accordingly when shopping for back-to-school wardrobes or seasonal apparel. Timing your clothing purchases around the best sales periods can help offset the tax hit.
Illinois Sales Tax by City and County
Local rates vary dramatically across the state. Chicago carries a combined rate of 10.25%. That breaks down to 6.25% state, 1.75% Cook County, 1.25% city, and 1.00% for the Regional Transportation Authority. A proposed RTA increase in mid-2026 could push Chicago to 10.50%, making it the highest-taxed major city in the nation for sales tax.
Suburban shoppers face lower but still significant rates. Specifically, Cook County suburbs pay more than collar county suburbs. The RTA tax is 1.00% in Cook County but only 0.50% in DuPage, Kane, Lake, McHenry, and Will counties.
| City | Combined Sales Tax Rate |
|---|---|
| Chicago | 10.25% |
| Evanston | 10.25% |
| Peoria | 9.00–10.00% |
| Champaign | 9.00% |
| Springfield | 8.75% |
| Joliet | 8.75% |
| Elgin | 8.50% |
| Aurora | 8.25% |
| Rockford | 8.25% |
| Naperville | 7.75% |
Keep in mind that rates can vary even within a single city. Overlapping special taxing districts mean your exact address matters. For large purchases, it pays to verify the rate at your specific store location.
Illinois Sales Tax Holidays
Illinois currently has no sales tax holidays in 2026. The state held a back-to-school tax holiday in 2022 that saved families an estimated $50 million. However, that program was not renewed. A 2025 proposal would have created a six-day holiday in August for clothing and school supplies. It did not pass.
If you’re near the border, neighboring states may offer relief. Missouri holds an annual back-to-school holiday in August. Indiana does not have sales tax holidays but does exempt some essentials. For Illinois shoppers, the best strategy is stacking coupons and cashback offers to create your own savings during peak shopping seasons.
Online Shopping and Illinois Sales Tax
Illinois sales tax applies to online purchases too. Major retailers like Amazon, Walmart, and Target collect it automatically at checkout. The rate you pay depends on the type of seller. Illinois uses a hybrid sourcing system that works differently for local and remote sellers.
When an in-state retailer ships from an Illinois warehouse, the tax rate is based on the shipping origin. However, when a remote or out-of-state seller ships to you, the rate is based on your delivery address. Marketplace facilitators like Amazon, eBay, and Etsy are required to collect Illinois sales tax on behalf of third-party sellers.
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As of January 2026, any seller with $100,000 or more in Illinois sales must collect tax. The previous 200-transaction threshold was removed. As a result, virtually all major online retailers now collect Illinois sales tax on your orders. You won’t find loopholes by shopping on smaller websites. For the best deals online, check our guide on saving money when shopping online.
Smart Shopping Tips for Illinois
1. Stock up on groceries at the right stores. With the state grocery tax eliminated, shoppers in municipalities that did not adopt the local 1% tax pay zero sales tax on qualifying groceries. Check whether your city opted in. If it did, you still only pay 1% — far less than the full rate on other goods.
2. Buy medicine and health supplies strategically. Prescription drugs and OTC medications carry just a 1% tax rate. In addition, medical devices, insulin, and diabetic supplies also qualify. Stock up on these items rather than general merchandise when budgets are tight.
3. Consider where you shop for big-ticket items. A $1,000 purchase in Chicago costs $102.50 in sales tax. That same item in Naperville costs $77.50. Driving to a lower-rate area can save real money on furniture, electronics, or appliances. However, vehicle purchases are always taxed at your home address rate.
4. Use cashback apps to offset Illinois sales tax. Since Illinois offers no tax holidays, create your own discounts. Cashback apps and browser extensions can return 1–10% on purchases. Explore cashback app reviews to find the best options for your spending habits.
5. Time purchases around major sales events. Without tax holidays, your best bet is aligning big purchases with Black Friday, Prime Day, or seasonal clearance events. Combining store discounts with cashback effectively cancels out the Illinois sales tax on many items.
Frequently Asked Questions
What is the sales tax rate in Illinois?
The state rate is 6.25%. However, combined with local taxes, the average rate across Illinois is 8.96%. Rates range from 6.25% in rural areas to 10.25% in Chicago. Always check the rate for your specific city or zip code before budgeting for a big purchase.
Are groceries taxed in Illinois?
The statewide 1% grocery tax was eliminated on January 1, 2026. However, approximately 660 municipalities adopted a local 1% grocery tax to replace it. Most Illinois shoppers still pay 1% on qualifying groceries. Candy, soft drinks, and prepared food are taxed at the full general merchandise rate.
Does Illinois have a sales tax holiday?
No. Illinois does not have a sales tax holiday in 2026. The state held one in 2022 but has not renewed it since. Proposals to create an annual back-to-school holiday have not passed the legislature. Shoppers should focus on stacking retailer sales with cashback offers to maximize savings year-round.
Start Saving on Every Purchase
Now that you know your state’s sales tax rates, use that knowledge to time your purchases and stack savings. Combine tax-free shopping periods with cashback apps and coupon codes to keep more money in your pocket.
Official Sources
- Tax Foundation — state and local sales tax data
- IRS.gov — federal tax information
- FTC Consumer Information — shopping rights and protections
Rates current as of May 2026. Sales tax rates change periodically. Always verify current rates with your state’s revenue department.