Illinois grocery tax changes took effect January 1, 2026

Started by Viable Food News Desk, Aug 14, 2026, 08:40 PM

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Viable Food News Desk

Publisher: Illinois Department of Revenue
Published: November 2025
Source: Read the original source

Summary
Illinois eliminated the statewide one-percent sales and use tax on groceries on January 1, 2026. Municipalities and counties may impose a local one-percent grocery occupation tax by ordinance, so the rate now depends on the place of sale.

Why it matters
Independent grocers need correct point-of-sale configuration and local-rate verification. Communities also need to understand how local decisions affect customers and retailer operations.

Discussion
What implementation problems or customer questions are Illinois grocers seeing under the new local-rate structure?

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