Illinois Sales Tax Basics

Illinois charges a state sales tax of 6.25 percent on most goods you buy in stores or online. On top of that, your city or county adds its own local sales tax, which ranges from 0 to 2.25 percent depending on where you live. So your total sales tax bill is the state rate plus whatever your local area charges — this means the final rate you pay can be anywhere from 6.25 percent to 8.5 percent.

The tax is calculated on the price of the item before you pay. If you buy something for $100 and your total sales tax rate is 7.5 percent, you add $7.50 to your bill. The store collects this tax from you at checkout and sends it to the state and local government.

Key Takeaways

  • Illinois charges 6.25 percent state sales tax on most purchases, plus a local tax that varies by city or county.
  • Your total sales tax rate depends on where you live and can range from 6.25 percent to 8.5 percent.
  • Groceries, prescription medications, and some medical equipment are exempt from sales tax in Illinois.
  • You can find your exact local sales tax rate by entering your address on the Illinois Department of Revenue website.

What Items Are Taxed and What Are Not

Most physical items you buy are subject to sales tax — clothing, electronics, furniture, and household goods all get taxed. However, Illinois exempts certain categories. Groceries (unprepared food you cook at home) are not taxed, but prepared food from restaurants and bakeries is. Prescription medications are exempt, as are some medical devices like diabetic testing supplies and hearing aids.

Services are generally not taxed in Illinois. If you pay a plumber, electrician, or accountant for their work, that service fee has no sales tax. However, if you buy a physical product from them — like a replacement part or a software license — that product may be taxed.

Digital items like e-books, streaming subscriptions, and downloaded software are not subject to Illinois sales tax. Gasoline is also exempt from the state sales tax, though it has its own fuel tax built into the pump price.

How to Find Your Local Sales Tax Rate

Your exact sales tax rate depends on your address. The Illinois Department of Revenue maintains a tax rate lookup tool on its website where you can enter your street address and see your combined state and local rate. This is useful if you are moving to a new area or want to know the exact amount you will pay on a purchase.

Some cities and counties have higher local rates than others. For example, Chicago's local rate is 1.25 percent on top of the state 6.25 percent, for a total of 7.5 percent. A smaller town might have only 0.5 percent local tax, bringing the total to 6.75 percent. The difference matters when you are budgeting for a large purchase.

Sales Tax on Online and Out-of-State Purchases

If you order something online from a retailer that has a physical location in Illinois or meets certain sales thresholds, Illinois sales tax applies to your order. Large online retailers like Amazon now collect Illinois sales tax on most purchases shipped to addresses in the state. The tax rate used is based on your delivery address, not where the seller is located.

If you order from a small out-of-state seller that does not have an Illinois presence and does not collect sales tax, you are technically responsible for paying "use tax" on that purchase — it is the same rate as sales tax but paid directly to the state. In practice, most individuals do not report use tax on personal purchases, though the law allows the state to pursue it.

Who Collects and Where the Money Goes

Retailers collect sales tax from you at the point of sale and hold it temporarily. They then send the collected tax to the Illinois Department of Revenue, which splits it between the state and the local government where the purchase happened. The state keeps 6.25 percent worth of what you paid, and your city or county keeps the local portion.

This means the store is not keeping the tax — it is acting as a collector for the government. Stores are required to send this money on a regular schedule, usually monthly or quarterly depending on how much tax they collect.

Sales Tax on Cars and Large Purchases

When you buy a car in Illinois, sales tax applies to the purchase price. The tax is calculated on the full price you negotiate, not on a reduced amount. If you trade in an old vehicle, some states allow you to subtract the trade-in value before calculating tax, but Illinois does not — you pay tax on the full sale price. This can add hundreds of dollars to the cost of a vehicle purchase.

For other large items like furniture or appliances, the same 6.25 percent state rate plus your local rate applies. There is no higher tax bracket for expensive items — the percentage stays the same whether you are buying a $50 item or a $5,000 item.

Frequently Asked Questions

Does Illinois charge sales tax on clothing?

Yes, most clothing is subject to Illinois sales tax at the full state and local rate. There is no clothing exemption in Illinois, unlike some other states. This includes shoes, accessories, and all types of apparel.

What is the sales tax rate in Chicago?

Chicago's combined sales tax rate is 7.5 percent — the state rate of 6.25 percent plus the city's local rate of 1.25 percent. Other areas of Illinois have different local rates, so your rate depends on your exact address.

Do I pay sales tax on used items?

If you buy a used item from a retail store or online marketplace, sales tax applies just as it does for new items. If you buy something from an individual (like a used car from a private seller), sales tax does not explore to that transaction, though you may owe use tax to the state.

Are haircuts and salon services taxed?

No, personal services like haircuts, massages, and salon treatments are not subject to sales tax in Illinois. However, if you buy a product at the salon — like shampoo or hair dye — that product is taxed.

Can I get a sales tax refund if I move out of Illinois?

No, Illinois does not refund sales tax on items you purchased before moving. Sales tax is final at the point of purchase. If you are moving and want to avoid future sales tax, you would need to make purchases in your new state after you move.