Illinois Sales Tax: State and Local Rates
Illinois has a state sales tax of 6.25 percent. However, most purchases in Illinois are subject to a higher total rate because cities and counties add their own local sales taxes on top of the state rate. Your actual sales tax depends on where you make the purchase within the state.
The combined rate ranges from 6.25 percent in a few areas with no local tax to as high as 10.25 percent in some municipalities. For example, Chicago's combined rate is 10.25 percent, while suburban areas may fall anywhere between 6.75 and 9.5 percent. The difference matters: a $100 purchase costs $6.25 more in tax in a low-tax area than in a high-tax area.
Key Takeaways
- Illinois state sales tax is 6.25 percent, but your total tax rate includes local additions that vary by city and county.
- Chicago charges 10.25 percent combined sales tax, while other Illinois cities range from 6.75 to 9.5 percent.
- You can find your exact local rate by entering your address on the Illinois Department of Revenue website or asking the retailer.
- Groceries, prescription medications, and certain medical equipment are exempt from Illinois sales tax.
- Online purchases from out-of-state sellers may be subject to Illinois sales tax depending on the seller's nexus in the state.
How Local Taxes Add to the State Rate
Illinois allows municipalities and counties to impose their own sales taxes within state limits. A city might add 1 percent, and the county might add another 0.5 to 1.5 percent. These stack on top of the 6.25 percent state rate, which is why you see combined rates that vary block by block in some cases.
The Illinois Department of Revenue maintains a database of all local tax rates by ZIP code and address. You can search for your specific location on their website to see the exact combined rate that applies to your purchases. If you are shopping in a different city or county, the rate changes—even if you are just crossing a municipal boundary.
What Is and Is Not Taxed in Illinois
Not everything you buy in Illinois is subject to sales tax. Groceries—including bread, milk, produce, and meat—are exempt from state and local sales tax. This exemption applies to food you prepare at home, not prepared meals or food eaten in a restaurant.
Prescription medications are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but drugs dispensed by a pharmacist with a prescription are not. Medical equipment such as wheelchairs, crutches, and diabetic testing supplies may be exempt depending on the specific item and how it is classified.
Clothing is taxed in Illinois, including shoes, jackets, and accessories. Services like haircuts, repairs, and labor are generally not subject to sales tax, though some service-related items may be. Gasoline is taxed, but the tax is included in the pump price rather than added at checkout.
Sales Tax on Online and Out-of-State Purchases
If you order from an online retailer that has a physical presence or employees in Illinois—called nexus—that retailer must charge you Illinois sales tax. Large retailers like Amazon, Walmart, and Target have nexus in Illinois and collect the appropriate local rate based on your delivery address.
If you order from a small out-of-state seller with no Illinois presence, they may not charge you sales tax at checkout. However, Illinois law technically requires you to pay use tax on those purchases when you file your state income tax return. In practice, most individual shoppers do not report use tax, but the obligation exists.
Finding Your Exact Local Sales Tax Rate
The easiest way to find your rate is to visit the Illinois Department of Revenue website and use their sales tax rate lookup tool. Enter your street address, city, or ZIP code, and the tool returns your combined state and local rate. This is the rate that applies to taxable purchases in your location.
You can also call a local retailer or your city or county tax assessor's office. Many retailers have the rate posted near the register or can tell you over the phone. If you are moving to a new area or shopping in an unfamiliar part of the state, checking before a large purchase can help you budget accurately.
How Sales Tax Affects Your Budget
Sales tax is a point-of-sale cost that adds up quickly on large purchases. A $500 appliance costs an extra $31.25 in a 6.25 percent area but $51.25 in a 10.25 percent area—a $20 difference. Over a year of regular shopping, the difference between living in a low-tax and high-tax municipality can amount to hundreds of dollars.
When budgeting for a purchase, multiply the price by your local combined rate to see the true cost. For example, if you are in Chicago and buying a $200 item, add 10.25 percent: $200 × 1.1025 = $220.50. This mental math helps you understand what you will actually pay at the register.
Frequently Asked Questions
Is Illinois sales tax the same everywhere in the state?
No. The state rate is 6.25 percent everywhere, but cities and counties add local taxes that vary. Your total rate depends on your exact location. Two addresses a few blocks apart in different municipalities can have different combined rates.
Do I pay sales tax on groceries in Illinois?
No. Food you buy at a grocery store for home preparation—produce, meat, dairy, bread—is exempt from sales tax. Prepared foods like deli items, hot food, and restaurant meals are taxed. Some items like candy and soda occupy a gray area; ask the cashier if you are unsure.
What is the sales tax in Chicago?
Chicago's combined sales tax is 10.25 percent. This includes the 6.25 percent state rate plus 1.25 percent city tax and 2.25 percent Cook County tax. Surrounding suburbs in Cook County have the same county rate but may have different city rates.
Do I have to pay sales tax on online orders?
If the online retailer has a physical location or employees in Illinois, yes—they must charge you the sales tax rate for your delivery address. If the seller has no Illinois presence, they typically do not charge tax, though Illinois law says you owe use tax on those purchases.
Are prescription medications taxed in Illinois?
No. Prescription drugs dispensed by a licensed pharmacist are exempt from sales tax. Over-the-counter medicines like pain relievers and cold medicine are taxed as regular retail items.