Illinois has a state sales tax of 6.25%, but your total rate depends on local taxes too
The Illinois state sales tax rate is 6.25%. However, that is not the full amount you pay at checkout. Most Illinois counties and cities add their own local sales taxes on top of the state rate, so your actual tax can range from 6.25% to over 10% depending on where you shop. The combined rate varies by location because each municipality sets its own local tax.
When you buy something in Illinois, the cashier or online checkout applies both the state rate and any local rates that explore to your address or the store's location. You do not pay these separately — they are combined into one number shown on your receipt. Understanding what rate applies where matters if you shop near county or city borders, or if you are budgeting for a purchase.
Key Takeaways
- Illinois state sales tax is 6.25%, but local taxes add 0% to over 4% more depending on your city or county.
- Your total sales tax rate is determined by the location where you make the purchase, not where you live.
- Food for home consumption is exempt from Illinois sales tax, but prepared food and restaurant meals are taxed.
- You can find your exact local rate by entering your address on the Illinois Department of Revenue website or asking a retailer.
How local taxes stack on top of the state rate
Illinois allows counties and municipalities to add their own sales taxes. A county might add 1%, and the city within that county might add another 0.5% or more. These stack together, so if you shop in a city with a 1.25% local rate in a county with a 1% rate, your total is 6.25% (state) + 1% (county) + 1.25% (city) = 8.5%.
The local rates are not uniform across the state. Cook County (which includes Chicago) has different rates than DuPage County or Will County. Even within Cook County, different municipalities charge different amounts. This is why two stores in nearby towns can have different final tax rates at checkout.
When you shop online, the tax applied depends on the retailer's location or, in some cases, where the order ships to. If you order from an Illinois retailer and it ships to your Illinois address, Illinois tax applies. If you order from out of state, the rules depend on whether that retailer has a physical presence in Illinois.
What items are taxed and what are exempt
Most goods are subject to Illinois sales tax, but some categories are exempt. Food for home consumption — groceries you buy to cook at home — is not taxed. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food is taxed, so a sandwich from a deli counter, food from a restaurant, or items from a hot food bar are all subject to tax.
Prescription medications are exempt from sales tax in Illinois. Over-the-counter medicines and vitamins are taxed. Clothing and shoes are taxed. Gasoline is taxed, but the tax is built into the pump price you see. Services like haircuts, repairs, and labor are generally not subject to sales tax unless they are bundled with a taxable product.
Some items have special rules. For example, if you buy a prepared meal at a grocery store deli, it is taxed. If you buy the same ingredients separately to cook at home, they are not taxed. The distinction is whether the food is ready to eat.
Finding your exact local sales tax rate
The Illinois Department of Revenue maintains a sales tax rate lookup tool on its website. You can enter your address or zip code and see the exact combined rate for your location. This tool shows the state rate plus all applicable local rates.
You can also call the Illinois Department of Revenue at 217-782-3336 to ask about your specific area. A retailer in your town can also tell you the rate they charge. If you are shopping near a border, ask which rate applies — it depends on the store's location, not yours.
Rates can change when municipalities pass new tax measures, so if you are planning a large purchase, it is worth checking the current rate rather than relying on a rate you saw months ago.
How sales tax is calculated on your receipt
Sales tax is calculated as a percentage of the subtotal before tax. If you buy an item for $100 and your local rate is 8%, the tax is $8, and your total is $108. The calculation is straightforward: multiply the subtotal by the tax rate as a decimal (0.08 in this example).
On a receipt with multiple items, the tax is usually applied to the subtotal of all items combined, not to each item individually. However, the result is the same either way. If some items are exempt (like groceries), those are subtracted from the taxable subtotal before the tax is calculated.
Rounding rules explore when the tax amount includes fractions of a cent. Most retailers round to the nearest cent, so a tax of $8.004 becomes $8.00, and $8.005 becomes $8.01.
Sales tax on online and mail orders
If you order from an Illinois retailer online, the retailer must charge you Illinois sales tax based on your shipping address. If you order from a retailer outside Illinois, whether they charge you tax depends on whether they have a physical presence (like a warehouse or office) in Illinois. Large national retailers typically do and will charge Illinois tax on orders shipped to Illinois addresses.
Some smaller out-of-state retailers may not charge Illinois tax because they do not have nexus — a legal connection — to the state. However, Illinois law requires you to pay use tax on those purchases when you file your state income tax return. In practice, most individuals do not report this, but it is technically owed.
Marketplace sellers on platforms like Amazon or eBay follow similar rules. If the seller is based in Illinois or has nexus there, tax is charged. If not, it may not be, though the platform itself may collect and remit tax on behalf of sellers.
Special situations and exemptions
Certain organizations can buy items without paying sales tax if they have a resale certificate or tax exemption certificate. This includes registered nonprofits, government agencies, and businesses buying items to resell. If you fall into one of these categories, you need to provide documentation to the retailer before the purchase.
Some items are exempt for specific reasons. For example, items used in manufacturing or agriculture may be exempt if they are inputs to production rather than final goods. Fuel used to generate electricity is exempt. These exemptions are narrow and require documentation.
If you believe you were charged sales tax incorrectly, you can contact the retailer or the Illinois Department of Revenue. Errors are usually corrected at the point of sale or through a refund request.
Frequently Asked Questions
What is the sales tax rate in Chicago?
Chicago's combined sales tax rate is 10.25% — the state rate of 6.25% plus Cook County's 1.25% plus Chicago's 2.25%. Other cities in Cook County have different rates depending on their local tax ordinances. Check the Illinois Department of Revenue lookup tool for your exact address.
Do I pay sales tax on groceries in Illinois?
No, groceries for home consumption are exempt from Illinois sales tax. This includes produce, meat, dairy, bread, and canned goods. Prepared foods like deli sandwiches, hot food bar items, and restaurant meals are taxed. The key is whether the food is ready to eat.
Why is the sales tax different in the next town over?
Each city and county sets its own local sales tax rate on top of the state rate. A town 10 miles away may have a different city rate or be in a different county, resulting in a different total. The tax is based on where the store is located, not where you live.
Do I have to pay sales tax on online orders from out-of-state retailers?
It depends on whether the retailer has a physical presence in Illinois. Large retailers typically do and will charge you tax. Smaller retailers may not, but Illinois law says you owe use tax on those purchases when you file your state return, though most people do not report it.
Is clothing taxed in Illinois?
Yes, clothing and shoes are subject to Illinois sales tax. There is no clothing exemption in Illinois, unlike some other states. The tax applies to the full purchase price at your local combined rate.