Illinois Repeals State Grocery Tax, Allows Local Governments to Impose Their Own 1% Tax

• Illinois will repeal its 1% state grocery tax on food for human consumption effective January 1, 2026.
• The exemption does not apply to alcohol, cannabis products, soft drinks, candy, or prepared foods.
• Municipalities and counties can impose their own 1% grocery tax if they filed an ordinance by October 1, 2025 (effective January 1, 2026) or by April 1, 2026 (effective July 1, 2026).
• Existing local grocery taxes in the RTA and MED districts will remain unchanged.

Source: ilga.gov

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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