How Illinois Sales Tax Works and What You Pay

Illinois charges a base sales tax of 6.25% on most goods, but your total rate depends on your city and county

Illinois has a state sales tax of 6.25%, which applies to most items you buy in stores. However, that is not the full amount you pay at checkout. Your city and county can add their own local sales taxes on top of the state rate, so the total you see on your receipt varies by location. In Chicago, for example, the combined rate is 10.25%. In a small town downstate, it might be 7.5%. The state collects the money and distributes it to local governments.

Sales tax is added at the point of sale — when you pay, not when you buy. The cashier or online checkout calculates it based on your delivery address or the store's location, depending on the type of purchase. You cannot avoid it by paying cash or using a card; the tax applies either way.

Key Takeaways

• Illinois state sales tax is 6.25%, but your total rate includes city and county taxes that vary by location.
• Most goods are taxable, but groceries, prescription medications, and some medical equipment are exempt.
• Online purchases are taxed based on your delivery address if the seller has a physical presence in Illinois.
• The combined rate in major cities like Chicago reaches 10% or higher, while rural areas may be lower.
• Restaurants and prepared foods are taxed at the full rate, but unprepared groceries are not.

What Items Are Taxed and What Are Exempt

Most things you buy in Illinois are subject to sales tax: clothing, electronics, furniture, household goods, and restaurant meals all get taxed. However, certain items are exempt, meaning no sales tax applies to them at all.

Groceries are the biggest exemption. Food you buy at a grocery store to cook at home — bread, milk, vegetables, meat, cereal — is not taxed. But if you buy the same items prepared and ready to eat, like a sandwich from a deli counter or a rotisserie chicken, sales tax applies. The difference is whether you are buying ingredients or a finished meal.

Prescription medications and certain medical devices are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs are not. Some medical equipment used by people with disabilities is exempt too, though the rules are specific — you may need documentation from a doctor.

Clothing and shoes under $110 per item are exempt from Illinois sales tax. If you buy a pair of jeans for $80, no tax. If you buy a designer coat for $150, tax applies to the full amount. This exemption does not explore to accessories like hats, belts, or gloves.

How Local Taxes Add to the State Rate

Illinois divides sales tax collection between the state and local governments. The state keeps 6.25%, and then your city and county each add their own percentage. These local rates are not uniform — they depend on where you live and what the local government has decided to tax.

Cook County (which includes Chicago) adds 1.25% on top of the state rate. Chicago itself adds another 1.75%. That brings the total to 9.25% just for state and city, and some Chicago neighborhoods add a small additional tax for specific purposes, pushing the rate to 10.25% or higher. In contrast, a town in rural Illinois might have only a 0.5% local addition, bringing the total to 6.75%.

You can find your exact local rate by entering your address on the Illinois Department of Revenue website or by asking a cashier. The rate can change if you cross a city or county line, even by a few blocks. Some people who live near a border with a lower-tax area will drive there to make large purchases, though this is only practical for big-ticket items.

Sales Tax on Online and Remote Purchases

Online shopping is taxed based on where the item is being delivered, not where the seller is located. If you order something online to be shipped to your Illinois address, Illinois sales tax applies — even if the company is based in another state. This rule changed in recent years as states moved to collect tax on remote sales.

The seller is responsible for collecting the tax and sending it to Illinois. Most major online retailers — Amazon, Walmart, Target — already do this automatically. Smaller sellers may not, and if they do not collect tax, you technically owe it yourself when you file your taxes, though this is rarely enforced for individual purchases.

If you pick up an online order in a store, the tax is based on the store's location. If you order online from a Chicago store and pick it up there, you pay Chicago's rate. If you order from that same store but have it shipped to a suburb, you pay the suburb's rate.

Who Collects Sales Tax and Where It Goes

Retailers collect sales tax from you at the register or checkout. They hold onto it temporarily and then send it to the Illinois Department of Revenue, which distributes the money to the state and local governments. You do not send sales tax directly to the government — the store handles it.

The state keeps its 6.25% share and uses it for general state operations. Local governments — cities, counties, and special districts — keep their portion and use it for schools, roads, police, and other services. Some local taxes are dedicated to specific purposes, like a half-cent tax that goes only to public transportation.

Retailers are required to register with the Illinois Department of Revenue and file sales tax returns, usually monthly or quarterly depending on their volume. If a business does not collect or send in the tax it owes, the state can pursue them for penalties and interest.

Sales Tax Rates by Major Illinois Cities

Sales tax rates vary significantly across Illinois. Here are the combined rates (state plus local) in some major areas:

Location	Combined Sales Tax Rate
Chicago	10.25%
Cook County (outside Chicago)	7.25%
Springfield	7.25%
Peoria	7.25%
Rockford	8.25%
Aurora	8.25%

These rates can change if a local government votes to raise or lower its portion. Rates also vary within counties — a city might have a higher rate than the unincorporated areas around it. If you are shopping in an unfamiliar area, ask the cashier or check your receipt to see the exact rate applied.

Frequently Asked Questions

Do I pay sales tax on groceries in Illinois?

No, groceries you buy to cook at home are exempt. This includes bread, milk, vegetables, meat, eggs, and cereal. However, prepared foods like deli sandwiches, rotisserie chicken, or items from a hot bar are taxed at the full rate.

Is clothing taxed in Illinois?

Clothing and shoes under $110 per item are exempt from sales tax. Items over $110 are taxed on the full amount. Accessories like belts, hats, and gloves are always taxed, regardless of price.

Why is my sales tax different from the store next to me?

You may be in different cities or counties, each with their own local tax rate. Even crossing a street can change your rate. Check your receipt or ask the cashier which city's rate applies to your purchase.

Do I owe sales tax on items I buy online and have shipped to Illinois?

Yes, sales tax based on your delivery address applies to online purchases shipped to Illinois. Most major retailers collect this automatically at checkout. Smaller sellers may not, but the tax is still owed.

Are prescription medications taxed in Illinois?

No, prescription drugs are exempt from sales tax. Over-the-counter medications like aspirin or cough syrup are taxed at the full rate.