State guide · IL
Illinois sales tax and property tax
Illinois dropped its state tax on groceries on January 1, 2026, kept a 1% rate on medicine, and still has some of the heaviest property tax bills in the country.
Facts read on official Illinois pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6.25%
- Local sales taxes
- Yes, by address
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $5,399
- Effective property rate
- 1.92% · #1 of 51
Since January 1, 2026, Illinois no longer collects any state tax on groceries, yet most shoppers still see 1% on their food receipt, because cities and counties may adopt a local grocery tax of exactly that rate and more than 600 of them filed ordinances before the change. Everything else keeps its old treatment: general merchandise, clothing included, pays the 6.25% state rate plus home rule, county, transit and other local taxes, and medicines, prescription or not, pay a reduced 1% state rate. A ten-day back-to-school holiday in August 2026 cut the state share on clothing under $125 to 1.25%. The property side is what makes Illinois expensive: homeowners paid a median $5,399 in 2024 (Census ACS), rank 6 of 51, on homes worth a median $280,700, a ratio of 1.92% that ranks 1. Cook County assesses homes at 10% of value, every other county at one third, and the general homestead exemption ranges from $6,000 to $10,000 of equalized value.
Total to pay
$106.25
Sales tax $6.25 · 6.25% of the price
| Price before tax | $100.00 |
| State tax · 6.25% | $6.25 |
| Local tax · 0% | $0.00 |
| Total | $106.25 |
Rule applied: general state rate. Exact local rate for an address: Illinois rate lookup. How this is calculated.
Sales tax in Illinois
The grocery reform is the change every Illinois household felt in 2026. Public Act 103-0781 ended the state's 1% tax on food for home consumption, but it handed the same rate to local government: a municipality or county may impose its own grocery tax, and the ordinance must set it at exactly 1%, no more and no less. Ordinances filed by April 1 start on July 1, and those filed by October 1 start the following January 1. In a town that adopted one, a $180 grocery run still owes $1.80; in a town that did not, it owes nothing. The Department of Revenue had to issue a compliance alert because some stores stopped charging the local tax where it was still due. Soft drinks, candy, alcohol and prepared food stay outside the grocery rate and pay the full general merchandise rate.
Medicine is the other Illinois peculiarity. Prescription and nonprescription drugs, corrective glasses, insulin syringes and prostheses pay 1% to the state instead of 6.25%, so a $14 bottle of cough syrup carries $0.14 of state tax. The local part on top depends on the address, which since January 1, 2025 is also the delivery address when an out-of-state retailer ships to Illinois, and local rates move only on January 1 and July 1. Use MyTax Illinois' rate finder for the combined figure and type the local share into the calculator above.
The August 7 to August 16, 2026 holiday was a reduced-rate event, not an exemption: a $110 jacket owed $1.38 of state tax that week instead of $6.88, with local taxes unchanged. Buyers of a car from a private seller pay on Form RUT-50, and households that owe use tax of $600 or less on untaxed purchases can settle it on their IL-1040.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6.25% | yes | State rate of 6.25% on general merchandise (Retailers' Occupation Tax). Qualifying drugs and medical appliances are taxed at a reduced 1% state rate. Since January 1, 2026 the State no longer taxes groceries (see groceries). |
| Groceries (food for home) | 0% | yes | The State eliminated its 1% tax on groceries on January 1, 2026 (Public Act 103-0781). Municipalities and counties may impose a local grocery tax of exactly 1% by ordinance; more than 600 ordinances had been filed before the change, so most shoppers still pay 1% on groceries. Soft drinks, candy, alcohol and prepared food remain taxed at the general merchandise rate. |
| Clothing | 6.25% | yes | Clothing is general merchandise taxed at 6.25% plus local taxes, except during the August 2026 sales tax holiday (state portion cut to 1.25% on items under $125). |
| Prescription drugs | 1% | yes | Qualifying drugs and medical appliances stay at the reduced 1% state rate after the 2026 grocery reform. |
| Private party vehicle purchases (Form RUT-50) | see note | Tax based on purchase price or fair market value using the RUT-5 chart; flat $25 for motorcycles and ATVs, $15 for some family transfers. |
Local sales taxes
Levied by home rule and non-home rule municipalities and counties, mass transit districts (RTA, Metro-East), park districts, county public safety / public facilities / transportation taxes, county school facility tax; since 2026 also a municipal or county grocery tax of exactly 1%. Local rates change only on January 1 and July 1. The local grocery tax, when adopted by ordinance, must be exactly 1%. No general cap read on an official page. Find the exact combined rate for an address with the official Illinois lookup, then type the local part into the calculator above.
Sales tax holidays in 2026
| Holiday | Dates | What qualifies |
|---|---|---|
| Back-to-School State Sales Tax Holiday | August 7, 2026 to August 16, 2026 | clothing and footwear priced under $125 per item and certain school supplies (no price limit on supplies); the state portion of the tax drops from 6.25% to 1.25%, local taxes still apply |
Created by Public Act 104-0468; it is a reduced-rate holiday (state share cut by 5 points), not a full exemption.
Worth knowing about Illinois sales tax
- On January 1, 2026 Illinois became a state with no state tax on groceries, but cities and counties may add a 1% local grocery tax by ordinance, and IDOR received more than 600 such ordinances. source
- Retailers in a town that adopted the local grocery tax must keep charging 1% on groceries; IDOR issued a compliance alert in 2026 because some stopped collecting it. source
- New local grocery tax ordinances filed by April 1 take effect July 1; those filed by October 1 take effect the following January 1. source
- Illinois held a 10-day back-to-school tax holiday from August 7 to 16, 2026, cutting the state share of tax to 1.25% on clothing under $125 and school supplies. source
- Since January 1, 2025, out-of-state retailers making sales to Illinois customers collect destination-based Retailers' Occupation Tax, including local taxes at the delivery address. source
- Medicines, including nonprescription items like aspirin and cough medicine, are taxed at a 1% state rate instead of 6.25%. source
Property tax in Illinois
Illinois property tax is entirely local: counties, townships, municipalities, school districts and a long list of special districts each levy, and the Department of Revenue only supervises equalization and exemptions. The first number on a bill is the assessment. Outside Cook County, homes are assessed at 33 1/3% of fair market value; in Cook County, residential property is assessed at 10% and multiplied by the state equalization factor, so the two systems produce very different assessed values for the same house before rates are applied. Reassessment comes every four years, every three in Cook.
The homestead exemption is a reduction in equalized assessed value, not in market value, and its size depends on the county: $6,000 in most of the state, $8,000 in the counties next to Cook and $10,000 in Cook itself. Owners 65 or older add a senior exemption of up to $5,000, or $8,000 in Cook and its neighbors, and those with household income of $75,000 or less in tax year 2026 can freeze their EAV by filing Form PTAX-340 every year. Remodeling a home is shielded for four years up to $75,000 of added value. PTELL, the "tax cap" law, limits how fast a non-home-rule district's total levy can grow, to 5% or inflation if lower, but it caps the district, not your individual bill.
With a typical ratio of 1.92%, a $320,000 house in Illinois carries about $6,154 a year, and homeowners can then claim an income tax credit worth up to 5% of the property tax paid on their main home. Payment dates are set county by county, so check your county treasurer's bill for the installments.
Property tax on a home in Illinois
Typical bill per year
$5,398
| Per month | $450 |
| Median effective rate in Illinois | 1.92% |
| Median bill paid | $5,399 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Illinois |
|---|---|
| Median home value (owner-occupied) | $280,700 |
| Median real estate taxes paid | $5,399 |
| with a mortgage | $5,901 |
| without a mortgage | $4,591 |
| Effective rate (tax ÷ value) | 1.92% |
| Rank by effective rate (1 = highest) | 1 of 51 |
| Rank by median bill | 6 of 51 |
How the taxable value is set
Outside Cook County, property is assessed at 33 1/3% of fair market value (farmland is assessed on its productivity). Cook County classifies property: residential property is assessed at 10% of market value. A state equalization factor is applied, and property is reassessed every four years (three in Cook County). The Property Tax Extension Limitation Law (PTELL) limits growth of non-home-rule districts' total levies to 5% or CPI, whichever is less, in Cook, the collar counties and counties that adopted it by referendum; it does not cap individual bills. Who levies the tax: local only: counties, townships, municipalities, school districts and other special districts levy; the Illinois Department of Revenue supervises equalization and exemptions
Other property tax relief
- Senior Citizens Homestead Exemption. Age 65+: EAV reduction of up to $8,000 in Cook and contiguous counties, $5,000 elsewhere. source
- Low-income Senior Citizens Assessment Freeze (SCAFHE). Freezes the EAV of a 65+ owner with household income of $75,000 or less for tax year 2026 ($77,000 for 2027, $79,000 for 2028 and after). File Form PTAX-340 each year. source
- Standard Homestead Exemption for Veterans with Disabilities. $2,500 EAV reduction at 30-49% disability, $5,000 at 50-69%, and the first $250,000 of EAV exempt at 70% or more. source
- Homestead Exemption for Persons with Disabilities. Annual $2,000 reduction in EAV. source
- Senior Citizens Real Estate Tax Deferral. Owners 65+ meeting income limits can defer property taxes; the state pays and recovers the amount with interest when the home is sold, up to 80% of the owner's equity. source
Worth knowing about Illinois property tax
- Cook County assesses homes at 10% of market value, while every other Illinois county uses 33 1/3%. source
- The homestead exemption depends on location: $10,000 of EAV in Cook County, $8,000 in the counties next to Cook, $6,000 elsewhere. source
- Homeowners may claim an Illinois income tax credit of up to 5% of the property tax paid on their primary residence. source
- The senior assessment freeze income limit rises by law from $75,000 (tax year 2026) to $77,000 (2027) and $79,000 (2028). source
- PTELL ('tax caps') covers Cook County since the 1994 levy year and the collar counties (DuPage, Kane, Lake, McHenry, Will) since 1991; 33 other counties adopted it by referendum. source
- Remodeling is shielded for four years: the Homestead Improvement Exemption covers up to $75,000 of added fair cash value. source