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Illinois Eliminates State Grocery Sales Tax in 2026, Local Taxes May Still Apply

  • Illinois will eliminate its 1% state sales tax on grocery items starting January 1, 2026.
  • Local grocery taxes may still apply, creating varying rules across counties and municipalities.
  • Affected parties include grocery stores, convenience stores, ecommerce sellers, and retailers in specific transit areas.
  • Sellers must review and comply with new local tax rules and ensure accurate tax reporting after the change.
  • TaxCloud will automatically update its system to reflect these changes for users.

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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