Illinois Ends State Grocery Tax in 2026, Local Taxes May Replace It

• Illinois will eliminate its 1% state grocery tax on January 1, 2026.
• Local governments can impose their own 1% grocery tax starting January 1 or July 1, 2026, depending on ordinance filing dates.
• The tax change applies only to food for human consumption; candy, soda, alcohol, and prepared foods remain taxable.
• Retailers must track varying local tax rates, making compliance more complex.
• Automated tax software is recommended to manage these changes.

Source: taxcloud.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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