Beginning January 1, 2026, some local jurisdictions in Illinois will implement new or adjusted sales tax rates on general merchandise. The changes affect several types of local taxes, including business district sales tax, home rule municipal sales tax, Metro-East Mass Transit District (MED) sales tax, and non-home rule municipal sales tax.
Retailers are required to update their cash registers and computer systems to ensure the correct collection and payment of these taxes starting on the effective date. Those using software for form creation are advised to contact their vendors to make necessary adjustments.
To check the updated combined state and local sales tax rates for January 2026, businesses can use the MyTax Illinois Tax Rate Finder at mytax.illinois.gov.
Further details can be found in Informational Bulletin FY 2026-10, Sales Tax Rate Change Summary, Effective January 1, 2026.
