Effective January 1, 2026, Illinois will exempt food for human consumption from sales tax by repealing the state’s 1% grocery tax. This exemption will not apply to alcoholic beverages, cannabis-infused products, soft drinks, candy, or prepared foods intended for immediate consumption. Coinciding with this repeal, municipalities and counties may impose their own 1% grocery tax to replace the eliminated state tax. Local governments that filed an ordinance with the State by the October 1, 2025 deadline will be authorized to impose the tax beginning January 1, 2026. Local governments that did not meet this deadline may file by April 1, 2026 to implement the tax starting July 1, 2026.
The existing local tax on grocery food sales within the Regional Transportation Authority (RTA) and the Metro-East Mass Transit District (MED) will remain in place.
For more information, see Public Act 103-0781.
