Chicago's combined sales tax is 10.25 percent
When you buy something in Chicago, you pay a 10.25 percent sales tax on most items. This rate combines the Illinois state sales tax of 6.25 percent, Cook County's tax of 1.25 percent, and Chicago's city tax of 2.25 percent. The total applies to clothing, groceries, electronics, and most other goods you purchase within city limits.
The 10.25 percent figure is one of the highest sales tax rates in the United States. If you buy a $100 item, you will pay $10.25 in tax on top of the price tag. This matters when you are budgeting for purchases or comparing prices between Chicago and nearby areas with lower rates.
Key Takeaways
- Chicago's total sales tax is 10.25 percent, made up of state (6.25%), county (1.25%), and city (2.25%) taxes.
- Most items are taxed at the full rate, but groceries, prescription medications, and some medical equipment are exempt.
- The tax is added at the register—price tags in stores do not include it, so your final bill will be higher than the displayed price.
- If you shop just outside Chicago in unincorporated Cook County or nearby suburbs, the rate drops to 8.25 percent or lower.
What items are exempt from Chicago sales tax
Not everything you buy is taxed at 10.25 percent. Groceries—items like milk, bread, vegetables, and meat from a supermarket—are not taxed at all in Illinois. This exemption applies throughout the state, including Chicago. However, prepared foods, restaurant meals, and items from a deli counter are taxed normally.
Prescription medications are also exempt from sales tax in Illinois. Over-the-counter medicines like aspirin or cold medicine are taxed, but anything you need a prescription to buy is not. Medical equipment such as wheelchairs, crutches, and diabetic testing supplies may be exempt depending on the specific item—ask the retailer or check the receipt if you are unsure.
Clothing used to be exempt in Illinois, but that changed in 2020. Clothing items are now taxed at the full 10.25 percent rate in Chicago, with no exceptions for shoes, coats, or children's clothing.
How the tax breaks down by source
The 10.25 percent rate is not a single tax—it is three separate taxes stacked together. Understanding where each piece comes from helps explain why Chicago's rate is higher than other parts of Illinois.
| Tax Source | Rate | Who Collects It |
|---|---|---|
| Illinois State Sales Tax | 6.25% | State of Illinois |
| Cook County Sales Tax | 1.25% | Cook County |
| City of Chicago Sales Tax | 2.25% | City of Chicago |
| Total in Chicago | 10.25% | Combined |
The state portion (6.25%) is the same everywhere in Illinois. The county and city portions vary depending on where you are. If you shop in a suburb outside Chicago but still in Cook County, you pay only the state tax plus the county tax (7.5%), which is 2.75 percent less than Chicago's rate.
Sales tax rates in nearby suburbs and areas
Chicago's 10.25 percent rate is higher than most surrounding areas. If you live near the city limits, you may notice a difference depending on where you shop.
Unincorporated Cook County (areas not part of any city) charges 8.25 percent—the state 6.25% plus the county 1.25%, with no city tax added. Suburbs like Evanston, Oak Park, and Skokie have their own city taxes on top of the state and county rates, so their totals vary. Evanston's rate is 9.5 percent, while some other suburbs range from 8.25 to 9.5 percent depending on their local ordinances.
If you cross into DuPage County or Will County, the rates drop further because those counties have lower local tax rates. DuPage County's combined rate is typically 8.25 percent or lower. This is why some Chicago residents shop just outside the city limits for large purchases—the tax savings can be significant on expensive items.
When and where you pay sales tax in Chicago
Sales tax is calculated and added at the point of sale—when you check out at a store, gas station, or restaurant. The price tag you see in the store does not include tax, so your final bill at the register will be higher. A $50 item costs $55.13 after tax in Chicago.
You pay sales tax on purchases made in Chicago, regardless of where you live. If you are a resident of a suburb but shop in Chicago, you pay Chicago's 10.25 percent rate. The reverse is also true: if you live in Chicago and shop in a suburb, you pay that suburb's rate.
Online purchases have different rules. If you order from a retailer that has a physical location or warehouse in Illinois, sales tax is usually added based on the delivery address. If the item is being delivered to a Chicago address, Chicago's 10.25 percent rate applies. Some online retailers do not collect sales tax, but Illinois law requires you to report and pay tax on those purchases yourself—though most individuals do not.
How to read your receipt and verify the tax
Your receipt shows the subtotal (the price before tax), the tax amount, and the total. You can verify the math by multiplying the subtotal by 0.1025. If you buy a $40 item, the tax should be $4.10, making the total $44.10.
Some receipts break down the tax by source (state, county, city), while others show only the combined amount. If you see a different rate on your receipt—for example, 8.25 percent instead of 10.25 percent—check the location where you made the purchase. You may have shopped outside Chicago without realizing it, or the retailer may have made an error. If you believe the tax is wrong, ask the store to recalculate it.
Frequently Asked Questions
Do I pay sales tax on groceries in Chicago?
No. Groceries—fresh produce, meat, dairy, bread, and other food items from a supermarket—are exempt from sales tax throughout Illinois, including Chicago. Prepared foods, restaurant meals, and items from a deli counter are taxed at the full 10.25 percent rate.
Is clothing taxed in Chicago?
Yes. Clothing became taxable in Illinois in 2020 and is now subject to the full 10.25 percent sales tax in Chicago. This includes shoes, coats, and children's clothing. There are no exemptions based on price or type of garment.
Why is Chicago's sales tax so high?
Chicago's rate is high because it combines three layers of tax: the state rate (6.25%), the county rate (1.25%), and the city rate (2.25%). The city added its 2.25 percent tax to fund municipal services. Nearby suburbs and unincorporated areas have lower rates because they do not have a city tax on top of the state and county taxes.
Do I pay sales tax if I buy something online and have it delivered to Chicago?
Usually yes. If the retailer has a physical presence in Illinois or collects sales tax, the tax is calculated based on your delivery address. A delivery to a Chicago address means you pay 10.25 percent. Some online retailers do not collect tax, but Illinois law technically requires you to report and pay it yourself.
What is the sales tax rate if I shop in a suburb outside Chicago?
It depends on the suburb. Unincorporated Cook County charges 8.25 percent. Named suburbs like Evanston (9.5%) and Skokie (8.625%) have their own rates. DuPage County suburbs are typically 8.25 percent or lower. Check your receipt or ask the store if you are unsure which rate applies.