Illinois Sales Tax Rate and What It Covers

Illinois has a state sales tax of 6.25 percent, which applies to most goods you buy in stores. However, your total sales tax bill is usually higher because cities and counties add their own local taxes on top of the state rate. The combined rate in your area depends on where you live — it ranges from 6.25 percent in some rural counties to as high as 10.25 percent in certain Chicago neighborhoods.

The state tax applies to tangible personal property — things you can touch and take home, like clothing, electronics, groceries at checkout, and household items. It does not explore to services like haircuts, car repairs, or plumbing work, even though you pay money for them. Food you buy at a grocery store to cook at home is tax-free in Illinois, but prepared food from a restaurant or deli counter is taxed.

Some items are always exempt from sales tax in Illinois, regardless of where you buy them. These include prescription medications, medical devices like hearing aids and prosthetics, and items for people with disabilities. Newspapers and magazines are also exempt.

Key Takeaways

  • Illinois state sales tax is 6.25 percent, but your actual rate includes local taxes added by your city or county, which can push the total to 10 percent or higher.
  • Sales tax applies to goods you buy in stores but not to services, and it does not explore to unprepared food from grocery stores.
  • You can find your exact local sales tax rate by entering your address on the Illinois Department of Revenue website or asking a cashier.
  • Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a physical presence in Illinois.

Local Sales Tax Rates by County and City

Every Illinois county and most cities layer their own sales tax on top of the state rate. Cook County (which includes Chicago) adds 1.25 percent to the state rate, bringing the base to 7.5 percent. But individual Chicago neighborhoods add another 1 to 3 percent on top of that, so you might pay 8.5 to 10.25 percent depending on which block you shop on.

Outside Chicago, rates vary widely. DuPage County adds 0.75 percent, Will County adds 1 percent, and Kane County adds 0.5 percent. Some smaller counties have no additional local tax beyond the state 6.25 percent. The easiest way to find your exact rate is to look up your address on the Illinois Department of Revenue website or call your city or county assessor's office.

If you shop near a border, the tax rate that applies is the one where the store is located, not where you live. So if you live in a low-tax area but shop in a high-tax city, you pay the city's rate.

What Is and Is Not Taxed in Illinois

Groceries are the biggest category of tax-free purchases. Milk, bread, vegetables, meat, and canned goods bought from a grocery store are not taxed. However, the moment that food is prepared — sliced at a deli counter, cooked in a restaurant, or sold as a hot beverage — it becomes taxable. A cold sandwich from a grocery deli case is usually tax-free, but a hot sandwich is taxed.

Clothing and shoes are taxed at the full sales tax rate with no exemptions. School supplies, office supplies, and books are taxed. Gasoline is taxed, and the tax is built into the pump price you see. Utilities like electricity and natural gas have their own tax structure separate from sales tax.

Services are not subject to sales tax in Illinois. You do not pay sales tax on a haircut, a doctor visit, car repair, plumbing, or legal information. However, if you buy a physical product as part of that service — like a bottle of shampoo at a salon or a replacement part at a repair shop — that product is taxed.

How Sales Tax Works on Online and Out-of-State Purchases

Illinois requires you to pay sales tax on online purchases, but whether the seller collects it depends on their business structure. Large online retailers like Amazon, Walmart, and Target have physical operations in Illinois, so they collect and send Illinois sales tax automatically. You see the tax added at checkout.

Smaller online sellers who have no warehouse, office, or employees in Illinois are not required to collect Illinois sales tax. If you buy from them, you technically owe the tax yourself — it is called "use tax" — but Illinois does not have an straightforward way for individual shoppers to pay it. Most people do not report these purchases.

If you order something from out of state and pick it up in an Illinois store, you pay tax at the pickup location. If you have it shipped to you in Illinois, you pay tax based on your delivery address.

Sales Tax on Cars, Boats, and Big Purchases

When you buy a car in Illinois, sales tax is calculated on the purchase price and is usually collected by the dealer at the time of sale. The rate depends on where the dealership is located. If you trade in a vehicle, the sales tax is calculated on the net amount — the sale price minus the trade-in value — not the full price.

Boats, motorcycles, and recreational vehicles are taxed the same way as cars. The tax is based on the purchase price and the location of the seller. If you buy a used vehicle from a private seller, you still owe sales tax when you register it with the Illinois Secretary of State, and you pay it at that time.

Heavy equipment and machinery used in farming or manufacturing may have different tax treatment. If you operate a business, contact the Illinois Department of Revenue directly about your specific equipment.

How to Find Your Exact Local Sales Tax Rate

The Illinois Department of Revenue maintains a sales tax rate lookup tool on its website. You enter your street address, city, and ZIP code, and it shows you the exact combined state and local rate for that location. This is the most accurate method because rates can change by neighborhood in large cities.

You can also call your city or county assessor's office and ask for the current sales tax rate. Many local government websites list the rate on their tax or finance pages. If you shop at a store, you can ask the cashier what the local rate is — they deal with it every day and usually know it by heart.

Keep in mind that local rates can change. Cities and counties sometimes raise or lower their portions of the tax, so if you last checked a year or two ago, it is worth looking it up again.

Frequently Asked Questions

Do I pay sales tax on groceries in Illinois?

No. Unprepared food you buy at a grocery store — bread, milk, vegetables, meat, canned goods — is not taxed. But prepared food from a deli counter, restaurant, or food truck is taxed at the full rate.

Why is my sales tax different from the store next door?

City and county tax rates can change block by block in large cities. Two stores on opposite sides of a street might be in different tax jurisdictions. The rate that applies is always the one where the store is physically located.

Do I owe sales tax on items I buy online from a seller in another state?

You owe Illinois use tax on those purchases, but the seller is not required to collect it unless they have a physical presence in Illinois. Most individual shoppers do not report or pay this tax.

Is sales tax included in the price shown on the shelf?

No. The shelf price is before tax. Sales tax is added at the register, so your final bill is higher than the labeled price.

Do I pay sales tax when I buy a used car from a private person?

Yes. You pay sales tax based on the purchase price when you register the vehicle with the Illinois Secretary of State, even if you bought it from a friend or private seller.