Illinois sales tax at a glance
| Type of tax | Sales and use tax |
|---|---|
| State rate | 6.25% |
| Local rates | Average 2.73%, highest 4.75% |
| Average combined rate | 8.98% |
| Groceries | No state tax; local 1% may applyThe 1% state tax on groceries ended on 1 January 2026. Cities and counties may impose their own 1% grocery tax, and transit taxes still apply in some areas. |
| Prescription drugs | 1% state ratePrescription and nonprescription medicines and medical appliances are taxed at the 1% state low rate, which continues in 2026. |
| Clothing | Taxed (August holiday cut state rate)Clothing is taxed at the general rate. During the 2026 back-to-school holiday the state rate on clothing under $125 fell to 1.25%. |
Local averages are population-weighted figures from the Tax Foundation: State and Local Sales Tax Rates, Midyear 2026 (rates as of 1 July 2026). They are a guide, not the rate at any one address. For the exact rate where you buy, use the MyTax Illinois Tax Rate Finder.
Worked examples
A $1,200 laptop in Chicago (10.25%)
| Rate | 6.25% state + 4% local = 10.25% |
|---|---|
| Price before tax | $1,200.00 |
| Sales tax | $123.00 |
| Total | $1,323.00 |
Working: $1,200.00 × 10.25% = $123.00. The local part is Cook County 1.75%, City of Chicago 1.25% and the RTA 1%. A laptop is general merchandise, so the full 10.25% applies.
Working back from a $108.98 total at the 8.98% average
| Rate | 6.25% state + 2.73% local = 8.98% |
|---|---|
| Price before tax | $100.00 |
| Sales tax | $8.98 |
| Total | $108.98 |
Working back: $108.98 ÷ 1.0898 = $100.00, so the tax was $8.98. At the state average combined rate, a $108.98 total means a $100 price. In Chicago, use a 4% local rate instead.
The 2026 grocery tax change
Illinois used to tax groceries at a reduced 1% state rate. That state tax was eliminated on 1 January 2026. To replace the lost revenue, municipalities may adopt a local grocery tax of exactly 1%, and counties may do the same in unincorporated areas; where both apply, the total is still 1%. The Regional Transportation Authority and Metro East transit taxes on groceries were not affected. So a grocery receipt in 2026 may show anywhere from no tax to a little over 2%, depending on the store's location.
Chicago and other local rates
Chicago's 10.25% rate is the 6.25% state rate plus 1.75% Cook County, 1.25% City of Chicago and 1% RTA tax. Other home-rule cities set their own rates, and the Tax Foundation's highest local rate is 4.75%, so a few places reach 11%. Local rates change only on 1 January and 1 July. Since 2025, remote retailers must charge the rate for the delivery address, so an online order can carry a different rate from the nearest store. Use the MyTax Illinois Tax Rate Finder for any address.
Medicine and the 1% rate
Illinois is one of the few states that taxes medicine. Prescription drugs, nonprescription medicines and medical appliances are taxed at a 1% state rate instead of 6.25%, and that low rate continues in 2026 even though groceries left it. Some local taxes can apply on top. Grooming and hygiene products are not medicines and are taxed at the general rate.
Illinois vs. neighboring states
| State | State rate | Avg. combined | Groceries |
|---|---|---|---|
| Illinois | 6.25% | 8.98% | No state tax; local 1% may apply |
| Wisconsin | 5% | 5.72% | Exempt |
| Iowa | 6% | 6.94% | Exempt |
| Missouri | 4.225% | 8.44% | 1.225% state + full local |
| Kentucky | 6% | 6.00% | Exempt |
| Indiana | 7% | 7.00% | Exempt |
Average combined rates are from the Tax Foundation, midyear 2026 report. See sales tax rates for every state for the full table.