Illinois has a base sales tax of 6.25%, but your total rate depends on your city and county

When you buy something in Illinois, you pay at least 6.25% in sales tax on top of the price. That 6.25% is the state rate set by Illinois. But most cities and counties add their own local sales tax on top of it, so your actual rate at checkout is usually higher — often between 7% and 10.25%, depending on where you live.

The state does not tax groceries, prescription medications, or medical equipment. Some counties and cities have carved out their own exemptions too, but those vary by location. If you are buying something other than food or medicine, assume it is taxable unless you have a specific reason to think otherwise.

Key Takeaways

  • Illinois state sales tax is 6.25%, but local taxes add 0.25% to 4% more depending on your city and county.
  • Groceries and prescription drugs are not taxed at the state level, but some local jurisdictions may still tax them.
  • You can find your exact local rate by entering your address on the Illinois Department of Revenue website or asking a cashier.
  • Online purchases from out-of-state sellers may not include Illinois tax at checkout, but you may owe it when the item arrives.

How local taxes stack on top of the state rate

Illinois divides sales tax into layers. The state collects 6.25%. On top of that, your county adds a tax (usually 0.25% to 1.5%). Then your city or municipality adds another layer (usually 0.5% to 2.5%). A few special districts — like transit authorities or convention centers — may add a small percentage too.

Cook County, which includes Chicago, has a combined rate of 10.25% (6.25% state plus 1.25% county plus 2.25% city in Chicago proper, though some suburbs are lower). DuPage County runs 8.25%. Downstate counties like Champaign run closer to 7% or 7.5%. The variation is real and significant — a $100 purchase costs $6.25 more in tax in Chicago than it does in some rural areas.

What is and is not taxed in Illinois

Not taxed: Groceries (food you cook at home), prescription medications, medical equipment like wheelchairs or oxygen tanks, and certain services like haircuts or car repairs. Some counties and cities have added their own exemptions for things like diapers or feminine hygiene products, but this varies.

Taxed: Clothing, shoes, household goods, electronics, furniture, gasoline, restaurant meals, alcohol, and most services. If you are unsure whether something is taxed, the safest assumption is yes — the exemptions are narrow and specific.

Finding your exact local sales tax rate

The Illinois Department of Revenue publishes a tax rate lookup tool on its website. You enter your street address, city, or ZIP code, and it shows you the combined state, county, and local rate for that location. This is the most reliable way to know what you will actually pay.

You can also call your city or county assessor's office, or ask a cashier at a local store. Most retailers know their local rate and can tell you on the spot. If you are buying online and the seller is asking for your address, they are usually calculating tax based on that lookup tool too.

Sales tax on online and out-of-state purchases

If you order from an out-of-state seller online, they may not charge you Illinois sales tax at checkout. However, Illinois law says you owe the tax anyway — it is called "use tax" and it is your responsibility to pay it. In practice, most people do not, and the state does not pursue individual shoppers for small amounts.

Large retailers like Amazon, Walmart, and Target now collect Illinois sales tax automatically at checkout, even for out-of-state orders. Smaller sellers and marketplaces vary. If you receive an item and no tax was collected, you are technically supposed to report it on your Illinois income tax return, though enforcement is minimal for individual purchases.

Special situations and exemptions

Businesses that resell items can get a resale certificate from the Illinois Department of Revenue, which lets them buy wholesale without paying sales tax. If you are starting a business, you will need to register for this.

Nonprofit organizations, government agencies, and certain medical facilities may be exempt from sales tax on specific purchases. The exemption is narrow — it usually applies only to items directly used in the organization's tax-exempt purpose, not to general office supplies.

If you are a resident of another state visiting Illinois, you still pay Illinois sales tax. If you are an Illinois resident buying something out of state, you pay that state's tax, not Illinois tax.

How sales tax revenue is used in Illinois

The state portion of sales tax (6.25%) goes into the Illinois General Revenue Fund, which pays for schools, roads, social services, and other state programs. The local portions go to your city and county — they use it for police, fire, libraries, parks, and local infrastructure.

Some cities and counties have voted to add temporary sales taxes for specific projects, like a new school building or transit improvements. These show up as separate line items on your receipt and expire after a set number of years.

Frequently Asked Questions

Do I pay sales tax on groceries in Illinois?

No. Food you buy at a grocery store to cook at home is not taxed at the state level. This includes bread, milk, vegetables, meat, and frozen dinners. However, prepared food you eat at a restaurant or deli counter is taxed, and a few local jurisdictions have added their own grocery tax on top of the state exemption.

What about prescription drugs and over-the-counter medicine?

Prescription medications are not taxed in Illinois. Over-the-counter drugs like aspirin or cold medicine are taxed, because they are not considered essential. The distinction is whether a doctor had to prescribe it.

If I buy something online from a company in another state, do I owe Illinois tax?

Yes, technically. Illinois calls this "use tax" and it is your responsibility to pay it. However, most large online retailers now collect it automatically. For smaller sellers, you are supposed to report it on your state tax return, though enforcement is rare for individual shoppers.

Why is the sales tax rate different in different cities?

Each city and county votes on whether to add a local sales tax on top of the state rate. They use the money for local services like police, schools, and roads. Cities with higher needs or older infrastructure often have higher rates.

Can I get a refund of sales tax if I return something?

Yes. When you return an item and get your money back, the sales tax is refunded too. Keep your receipt so you can show the cashier what you paid.