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

Illinois charges a base sales tax of 6.25 percent on most goods and services. However, your actual rate at checkout is usually higher because cities and counties add their own local taxes on top. The total you pay ranges from 6.25 percent in some areas to as high as 10.25 percent in others, depending on your location.

When you buy something in Illinois, the seller collects all these taxes together and sends them to the state and local governments. You see one combined number on your receipt, but that number is made up of the state portion plus whatever local additions explore to your address.

The state does not tax groceries, prescription medications, or medical equipment. Some services like haircuts and repairs are taxed, while others like professional services are not. Understanding what is and is not taxed helps you predict what you will actually pay.

Key Takeaways

  • Illinois state sales tax is 6.25 percent, but most people pay between 7 and 10.25 percent when local taxes are added.
  • Groceries and prescription drugs are not taxed in Illinois, but prepared food and over-the-counter medicines are.
  • Your exact rate depends on your city and county, so two people in different neighborhoods can pay different totals on the same item.
  • The seller collects and remits all sales taxes; you do not file or pay separately.

How local taxes stack on top of the state rate

After the state takes its 6.25 percent, your city or municipality can add between 0 and 2.25 percent. Cook County (which includes Chicago) adds an additional 1.25 percent on top of local city taxes. Some counties add their own layer as well. This layering is why someone in Chicago pays more than someone in a small town downstate, even though they are buying the same item.

The highest combined rates in Illinois are found in Chicago and some Cook County suburbs, where totals reach 10.25 percent. The lowest rates are in areas with no local additions, where you pay only the state 6.25 percent. Most Illinois residents fall somewhere in between, typically paying 7 to 8.5 percent.

You can find your exact local rate by entering your address into the Illinois Department of Revenue tax rate lookup tool on their website, or by asking a cashier what the rate is in your area. Your receipt will also show the exact percentage charged.

What is taxed and what is not

Groceries — items you buy at a supermarket to cook at home — are not taxed in Illinois. This includes bread, milk, vegetables, meat, and canned goods. However, prepared food is taxed. If you buy a rotisserie chicken at the grocery store deli, a sandwich from the deli counter, or anything from a restaurant, you pay sales tax on it.

Prescription medications are not taxed, but over-the-counter medicines like pain relievers, cold medicine, and allergy pills are. Medical equipment such as wheelchairs, crutches, and diabetic supplies are not taxed. Clothing and shoes are not taxed in Illinois, which is unusual — many states tax apparel.

Services are taxed differently depending on the type. A haircut or salon service is taxed. Car repairs and appliance repairs are taxed. However, professional services like accounting, legal information, and medical care are generally not taxed. Digital goods like e-books, streaming subscriptions, and downloaded software are taxed.

How sales tax works when you shop online

If you order from a retailer that has a physical location in Illinois, they collect and send sales tax based on your delivery address. If you order from an out-of-state retailer with no Illinois presence, they may not collect Illinois tax at the time of purchase. However, Illinois residents are technically responsible for paying "use tax" on untaxed purchases — a tax equal to the sales tax rate in your area.

In practice, most people do not pay use tax on individual online purchases. The state focuses enforcement on large transactions and businesses. If you are buying from a major retailer like Amazon, they now collect Illinois sales tax on most items because they have warehouses in the state.

When you receive your order, check your receipt or confirmation email to see whether sales tax was charged. If it was not and the item would normally be taxed, you technically owe use tax, though reporting it is voluntary for individual consumers.

Sales tax on vehicles and large purchases

When you buy a car in Illinois, sales tax applies to the purchase price. The rate is the same as regular sales tax — your local combined rate. You pay this tax when you register the vehicle with the Secretary of State, not at the dealership. The dealership will guide you through this process as part of the purchase.

If you trade in a vehicle, the sales tax applies only to the difference between the new car's price and your trade-in value, not the full purchase price. This can lower your tax bill significantly on a trade-in purchase.

For other large purchases like furniture or appliances, the same sales tax rules explore as for any other item. If the item is taxable in Illinois, you pay your local rate on the full purchase price.

Tax-free shopping periods and exemptions

Illinois does not have a regular annual sales tax holiday like some states do. However, the state occasionally runs temporary tax-free periods for specific items or circumstances. These are announced by the Illinois Department of Revenue and typically last a few days. You would need to check the department's website or news announcements to know when these occur, as they are not automatic.

Certain organizations are exempt from paying sales tax. Nonprofits, schools, and government agencies can purchase items tax-free if they have the proper exemption certificate. Individuals cannot use these exemptions for personal purchases.

If you are a reseller — someone who buys items to resell to customers — you can get a resale certificate that lets you buy wholesale without paying sales tax. You then collect sales tax from your customers when you sell the items.

Understanding your receipt and tax breakdown

Your receipt shows the subtotal before tax, the amount of tax charged, and the final total. The tax line usually shows only the combined percentage, not the breakdown between state and local portions. If you want to know exactly how much went to the state versus your city or county, you would need to calculate it yourself or contact your local tax office.

The tax is calculated on the subtotal, not on any discounts you received. If you use a coupon or get a discount, the tax applies to the reduced price, not the original price. This is why your final total is lower when you use a coupon.

If you notice the tax amount seems wrong, double-check that the item should be taxed. Groceries, for example, should not have tax added. If a grocery item was taxed by mistake, you can ask the cashier to correct it at the register.

Frequently Asked Questions

Do I pay sales tax on groceries in Illinois?

No. Unprepared groceries — items you buy to cook at home — are not taxed. This includes produce, meat, dairy, bread, and canned goods. Prepared food like deli items, restaurant meals, and hot foods are taxed.

What is the sales tax rate in Chicago?

Chicago's combined sales tax rate is 10.25 percent. This includes the state rate of 6.25 percent, the city rate of 1.25 percent, and the Cook County rate of 1.25 percent, plus a 1.5 percent tax on certain items in some areas.

Do I have to pay sales tax on clothes?

No. Clothing and shoes are not taxed in Illinois. This applies to most apparel, including coats, pants, shirts, and accessories. Specialized items like sports equipment or protective gear may have different rules.

Can I return something and get the sales tax back?

When you return an item for a refund, the store refunds both the price and the tax you paid. The tax refund is automatic — you do not need to request it separately. If the store does not refund the tax, ask them to correct it.

How do I find the exact sales tax rate for my address?

Visit the Illinois Department of Revenue website and use their sales tax rate lookup tool. Enter your address and it will show your combined state and local rate. You can also call your city or county tax office, or ask a cashier in your area.