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Illinois Eliminates State Grocery Sales Tax, Allows Local 1% Tax Options

  • Illinois will eliminate its 1 percent state sales tax on groceries starting January 1, 2026
  • Retailers must report grocery sales differently on tax returns after the change takes effect
  • Local municipalities and counties can impose their own 1 percent grocery tax through ordinances
  • Local ordinances must be filed by October 1, 2025 to take effect on January 1, 2026
  • Later filing deadlines will result in later effective dates for local grocery taxes

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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