Starting January 1, 2026, Illinois will remove the state’s one-percent sales and use tax on grocery purchases. Under a new law, municipalities and counties in Illinois can set their own local grocery tax rate of exactly one percent through a formal ordinance. For this to take effect, the local government must file the ordinance with the Illinois Department of Revenue (IDOR) for approval. The legislative change is outlined in Public Act 103-0781.
Additional details are available in an informational bulletin regarding municipal and county grocery occupation tax rate changes that will take effect on January 1, 2026.
