Illinois sales tax is 6.25 percent statewide, but your total rate depends on where you shop

The state sales tax in Illinois is 6.25 percent. However, most counties and cities add their own local tax on top of that amount. Your actual rate at checkout ranges from 6.25 percent to 10.25 percent depending on which municipality you are in. A purchase that costs $100 might cost $106.25 in one location and $110.25 in another, even though both are in Illinois.

The state collects 6.25 percent. The remainder goes to the county, city, or special district where the sale happens. You pay tax based on the address of the store, not where you live. If you shop in Chicago, you pay Chicago's rate. If you drive to a suburb, the rate changes.

Key Takeaways

  • Illinois state sales tax is 6.25 percent, but local taxes add 0 to 4 percent more depending on your city or county.
  • Your total rate is determined by the location of the store where you make the purchase, not your home address.
  • Chicago's combined rate is 10.25 percent, one of the highest in the state.
  • Groceries, prescription medications, and medical equipment are exempt from Illinois sales tax.
  • You can find your exact local rate by entering your address on the Illinois Department of Revenue website or asking a cashier.

How local taxes stack on top of the state rate

Illinois allows counties and municipalities to add their own sales taxes. Cook County (which includes Chicago) adds 1.25 percent to the state rate. The City of Chicago adds an additional 1.75 percent on most items and 2.25 percent on certain goods like prepared food and alcohol. That brings Chicago's combined rate to 10.25 percent.

Other areas vary widely. Some suburbs in Cook County have lower combined rates because they do not impose a city tax. DuPage County's rate is 7.25 percent. Will County is 7 percent. Smaller towns may have rates anywhere from 6.25 percent to 8.5 percent. The only way to know your exact rate is to check your specific address or ask the store.

What is and is not taxed in Illinois

Most items you buy in a store are subject to sales tax: clothing, electronics, furniture, household goods, and prepared food. However, Illinois exempts several categories. Groceries — unprepared food you cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods.

Prescription medications are exempt from sales tax. Over-the-counter medicines like aspirin or cold medicine are taxed. Medical equipment such as wheelchairs, crutches, and diabetic supplies are also exempt. Diapers and feminine hygiene products became exempt starting January 1, 2022.

Prepared food — restaurant meals, deli sandwiches, and food from a hot bar — is taxed at the full rate, including the higher local rate in Chicago. The distinction matters: a loaf of bread from a grocery store is not taxed, but a sandwich from a deli counter is.

Chicago and Cook County rates are among the highest

Chicago's 10.25 percent combined rate is one of the highest in Illinois and higher than many surrounding suburbs. This is because Chicago imposes both a city tax and a tax on certain categories. The city's 1.75 percent general rate applies to most goods, but prepared food and beverages are taxed at 2.25 percent.

If you live near the Cook County border, shopping just outside the city can save money on large purchases. A $500 electronics purchase costs $51.25 in tax in Chicago but $36.25 in some nearby suburbs — a difference of $15. For groceries and prescription items, the location does not matter because neither is taxed anywhere in the state.

How to find your exact local sales tax rate

The Illinois Department of Revenue maintains a sales tax rate lookup tool on its website. Enter your street address, and it will show you the combined state and local rate for that location. This is the most accurate method because rates can change by block in some areas.

You can also call your city or county assessor's office and ask for the current sales tax rate. Many retailers' websites also display the tax rate for their location. If you are shopping online and the seller is based in Illinois, they will charge tax based on the delivery address you provide.

Sales tax on online purchases from Illinois sellers

If you order from an online retailer based in Illinois, you pay sales tax based on where the item is being delivered, not where the company is located. An order shipped to a Chicago address is taxed at Chicago's rate. The same order shipped to a suburb uses that suburb's rate.

Out-of-state online retailers are not required to charge Illinois sales tax unless they have a physical presence in the state. However, Illinois residents are technically required to pay "use tax" on untaxed purchases from out-of-state sellers. In practice, this is rarely enforced for individual purchases, but it is part of Illinois tax law.

Frequently Asked Questions

Is clothing taxed in Illinois?

Yes, most clothing is subject to sales tax in Illinois. There is no clothing exemption. However, items like shoes, hats, and accessories all count as taxable clothing. The only exception is if the item is part of a medical device or adaptive equipment, which may be exempt.

Do I pay sales tax on groceries?

No. Unprepared food you buy at a grocery store — bread, milk, vegetables, meat, frozen dinners, and canned goods — is not taxed. Prepared food from a deli counter, restaurant, or hot bar is taxed. The difference is whether the food is ready to eat.

What is the sales tax rate in my city?

Use the Illinois Department of Revenue's online rate lookup tool with your street address, or call your city or county assessor's office. Rates vary by location and can range from 6.25 percent to 10.25 percent across the state.

Do I have to pay sales tax on prescription drugs?

No. Prescription medications are exempt from Illinois sales tax. Over-the-counter medicines like pain relievers and cold medicine are taxed. Medical equipment and supplies like wheelchairs and glucose monitors are also exempt.

Why is Chicago's sales tax so high?

Chicago adds both a city tax and a higher tax on prepared food and beverages on top of the state and county rates. The city uses this revenue for municipal services and infrastructure. Surrounding suburbs have lower rates because they impose lower or no local taxes.