Illinois has a base sales tax of 6.25%, but your total rate depends on your county and municipality
Illinois sets a statewide sales tax of 6.25%, but that is not what you pay at checkout. Most counties and cities add their own local sales taxes on top of the state rate. Your total sales tax can range from 6.25% (in a few areas with no local add-ons) to over 10% depending on where you live or shop. The tax applies to most tangible goods, though groceries, prescription medications, and some other items are exempt.
The Illinois Department of Revenue publishes the combined rate for each municipality, and it changes when a local government votes to raise or lower its portion. If you live near a county border, the rate can shift by a full percentage point depending on which side you shop on.
Key Takeaways
- Illinois's base state sales tax is 6.25%, but local taxes add 0% to over 4% depending on your county and city.
- Cook County (Chicago) has a combined rate of 10.25% in most areas, while some downstate counties sit at 6.25% or 7.25%.
- The Illinois Department of Revenue website lists the exact rate for your address, and rates change when municipalities vote on tax increases.
- Groceries and prescription drugs are exempt from sales tax in Illinois, but prepared food and restaurant meals are taxed.
- Online purchases from out-of-state sellers are subject to Illinois sales tax if the seller has a physical presence in the state or meets federal economic nexus thresholds.
How local taxes stack on top of the state rate
The 6.25% state rate is the floor. On top of that, counties can add up to 1.25%, and municipalities (cities and villages) can add up to 1.5%. Some areas use both, which is why Cook County reaches 10.25% in Chicago and surrounding areas. Other counties use only the state rate or add a smaller county portion.
The breakdown matters because it determines what you actually pay. In DuPage County, the combined rate is typically 8.25%. In Will County, it is often 8.25% as well, but the split between state, county, and local differs. The Illinois Department of Revenue publishes a searchable list by ZIP code and municipality on its website, updated whenever a local government changes its rate.
Some municipalities also impose a separate tax on specific items—restaurants in some cities pay an extra tax on prepared food, for example—but this does not affect the general sales tax you see on receipts.
What is taxed and what is not
Groceries are not subject to sales tax in Illinois, which means milk, bread, produce, and packaged foods you buy at a supermarket are exempt. Prescription medications are also exempt. However, prepared food—sandwiches from a deli counter, restaurant meals, coffee from a café—is taxed at the full local rate.
Clothing and shoes are taxed. Services are generally not taxed, though some specific services (like dry cleaning or car rentals) may have their own taxes. Digital goods and software subscriptions are taxed in Illinois. Gasoline has its own excise tax separate from sales tax.
If you are unsure whether a specific item is taxed, the receipt will show it. If the item does not appear on the taxable line, it was not subject to sales tax.
How to find your exact local rate
The fastest way is to visit the Illinois Department of Revenue website and use its sales tax rate lookup tool. You enter your ZIP code or municipality name, and it shows the combined rate for that area. The tool is updated whenever a local government changes its rate, so it reflects the current amount you will pay.
You can also call your city or village clerk's office and ask for the current combined sales tax rate. They can tell you the exact percentage and whether any recent votes changed it. If you live near a border, confirm which municipality your address falls under, because rates can differ by a full percentage point within the same county.
Retailers are required to display the sales tax rate on receipts, so you can also check your last few purchases to see what rate was applied to your area.
Why rates vary so much across Illinois
Illinois allows each municipality to set its own local rate, which creates a patchwork of different percentages across the state. Some cities have voted to raise their local rate to fund schools, roads, or public services. Others have kept it low to attract shoppers. Cook County's high rate reflects the cost of services in the Chicago area, while rural counties often have lower rates.
When a municipality votes to increase its sales tax, the change usually takes effect on the first day of the following month. You will see the new rate on your next receipt. Some communities hold referendums on tax increases, while others allow the city council or village board to approve them directly.
Sales tax on online and out-of-state purchases
If you buy from an online retailer that has a physical location in Illinois or meets federal economic nexus rules (generally $100,000 in sales or 200 transactions to Illinois residents in a year), the retailer must collect Illinois sales tax. Large retailers like Amazon, Walmart, and Target collect the tax based on your delivery address.
If a retailer does not collect Illinois sales tax, you may owe use tax on the purchase. Use tax is Illinois's way of taxing purchases that escape sales tax. Most people do not pay it voluntarily, but it is technically owed. If you are audited, the state can assess use tax on out-of-state purchases.
For practical purposes, assume that major online retailers will collect the tax. Smaller sellers or international purchases may not, in which case the tax obligation falls to you.
How sales tax affects your budget and receipts
Sales tax is added at checkout, so the price on the shelf is not the price you pay. In Cook County at 10.25%, a $100 purchase costs $110.25. In a county with 7.25% tax, the same item costs $107.25. Over a year, the difference adds up, especially for large purchases like appliances or furniture.
Some people factor this into shopping decisions, particularly near county borders. If you live in a high-tax area and a lower-tax county is nearby, buying larger items there can save money. However, you are responsible for paying the tax where you live, not where you shop, so this only works if you actually live in the lower-tax area.
Receipts always show the sales tax amount separately, so you can see exactly how much tax you paid. This is useful for tracking expenses or understanding why your total was higher than expected.
Frequently Asked Questions
What is the sales tax rate in Chicago?
Chicago's combined sales tax rate is 10.25%. This includes the 6.25% state rate, 1.25% Cook County tax, and 2.25% Chicago city tax. Some surrounding Cook County municipalities have slightly different rates, so check your specific address on the Illinois Department of Revenue website.
Do I pay sales tax on groceries in Illinois?
No. Groceries—unprepared food you buy at a supermarket—are exempt from sales tax. This includes produce, meat, dairy, bread, and packaged foods. Prepared food like restaurant meals, deli sandwiches, and hot coffee are taxed at the full local rate.
Why is the sales tax different in the next town over?
Each municipality sets its own local sales tax rate on top of the state rate. A town 10 miles away may have voted for a different local rate, creating a 1% or 2% difference. The Illinois Department of Revenue website shows the exact rate for each ZIP code and municipality.
Do I owe sales tax on online purchases from out-of-state sellers?
If the seller has a physical presence in Illinois or meets federal economic nexus thresholds, they must collect Illinois sales tax. Major retailers do this automatically. If they do not collect it, you technically owe use tax, though most people do not pay it voluntarily.
Can a city change its sales tax rate without a vote?
It depends on the city's charter and state law. Some municipalities require a referendum, while others allow the city council to approve a rate change. When a rate changes, it usually takes effect on the first day of the following month. Check your city's website or clerk's office to see if a rate change is planned.