Illinois charges sales tax on most goods, but the rate depends on where you buy and what you're buying

Illinois has a state sales tax of 6.25%, but the total tax you pay at checkout is usually higher. Most counties and cities add their own local sales taxes on top of the state rate. The combined rate ranges from 6.25% to over 10% depending on your location. Some items are taxed at the full rate, some are taxed at a lower rate, and some are not taxed at all.

The tax is calculated on the sale price and collected by the seller at the register. You don't file anything yourself as a buyer — the store handles it. But understanding what is and isn't taxed, and what rate applies where you live, helps you budget and spot errors on your receipt.

Key Takeaways

  • Illinois state sales tax is 6.25%, but your actual tax rate includes local additions that vary by county and city, ranging from 6.25% to over 10%.
  • Most goods are taxed, but groceries, prescription medications, and medical equipment are generally not subject to sales tax in Illinois.
  • You can find your exact local sales tax rate by entering your address on the Illinois Department of Revenue website or asking your local tax assessor.
  • The seller collects and remits the tax — you do not file a separate form as a buyer.

What the state rate covers and how local taxes stack on top

The 6.25% state rate applies to most retail purchases across Illinois. On top of that, your county adds a tax (usually 0.5% to 2%), and your city or municipality may add another layer (usually 0.5% to 3%). A few special districts — like transit authorities or convention bureaus — can add fractional percentages as well. This is why two people buying the same item in different towns pay different amounts of tax.

For example, a $100 item in Chicago might be taxed at 10.25% (state 6.25% plus Cook County 1.25% plus Chicago 2.75%), while the same item in a small town in a different county might be taxed at 7.25%. The seller's register is programmed with the correct rate for that location, so the math happens automatically at checkout.

Items that are not taxed in Illinois

Illinois does not charge sales tax on groceries — this includes bread, milk, vegetables, meat, and other food you buy to cook at home. The rule is narrow: prepared foods, restaurant meals, and food sold hot or ready-to-eat are taxed. A cold sandwich from a deli counter is not taxed, but a hot rotisserie chicken is.

Prescription medications and certain medical devices are also exempt. This includes insulin, inhalers, hearing aids, and prosthetics. Over-the-counter medications like aspirin or cold medicine are taxed as regular goods. Durable medical equipment prescribed by a doctor — such as wheelchairs, oxygen equipment, or diabetic testing supplies — is typically not taxed, but you may need a prescription or doctor's letter to prove the medical purpose.

Clothing and footwear are generally taxed in Illinois, unlike some other states. However, items like school uniforms and certain protective gear may have different treatment depending on how they're classified. When in doubt, ask the cashier or check your receipt after purchase.

How to find your exact local sales tax rate

The Illinois Department of Revenue publishes a sales tax rate lookup tool on its website. You enter your street address, and it shows you the combined state and local rate for that location. This is the most accurate way to know what you'll pay, because rates can change and vary even within the same city depending on special district boundaries.

You can also call your city or county assessor's office directly. They maintain the official rate and can explain any recent changes. If you're a business owner or you're buying in bulk for resale, you may need a resale certificate to avoid paying tax — that's a separate process handled through the Department of Revenue.

Common mistakes on sales tax receipts

The most common error is when a store applies the wrong local rate — usually because the register wasn't updated after a rate change, or the cashier rang up the item in the wrong location code. If you notice the tax seems too high or too low, check your receipt against the official rate for your address. Most stores will correct an overcharge if you ask within a reasonable time.

Another mistake is assuming all food is tax-free. Candy, soda, and other prepared or non-essential food items are taxed. The exemption is for groceries you cook with, not snacks or drinks. Similarly, some people assume clothing is never taxed, but in Illinois it is — the exemption applies only to specific items like school uniforms in certain contexts.

Sales tax on online and out-of-state purchases

If you buy from an online retailer that has a physical presence in Illinois (a warehouse, office, or store), Illinois sales tax applies. Many large retailers now collect Illinois tax on all orders shipped to Illinois addresses, even if they have no physical location here. The tax rate is based on your delivery address, not where the seller is located.

If you buy from a small out-of-state seller with no Illinois presence, they are not required to collect Illinois tax. However, Illinois residents are technically supposed to pay "use tax" on those purchases — it's the same rate as sales tax, and you report it when you file your state income tax return. In practice, most people do not report use tax on small personal purchases, but businesses are expected to track and report it.

Resale certificates and business purchases

If you buy goods to resell, you can provide a resale certificate to avoid paying sales tax on your purchase. You get the certificate from the Illinois Department of Revenue. The seller keeps it on file, and you pay no tax on that transaction. You then collect tax from your own customers when you sell the goods.

This applies to retailers, wholesalers, and anyone buying inventory for resale. It does not explore to services or to goods you buy for your own use, even if you run a business. For example, a salon owner pays tax on shampoo they use in the salon, but not on shampoo they sell to customers.

Frequently Asked Questions

Is there a difference between sales tax and use tax in Illinois?

Sales tax is collected by the seller when you buy something in Illinois. Use tax is what you owe on purchases from out-of-state sellers who don't collect Illinois tax. The rate is the same, but use tax is your responsibility to report on your tax return. Most people only encounter use tax on large purchases or business inventory.

Do I pay sales tax on services in Illinois?

Most services are not subject to sales tax in Illinois. Haircuts, car repairs, plumbing, and consulting are generally not taxed. However, some services bundled with goods — like installation or delivery — may be taxed depending on how the invoice is written. Ask the service provider if you're unsure.

What if the store charged me the wrong tax rate?

Check your receipt against the official rate for your address using the Illinois Department of Revenue lookup tool. If there's an error, contact the store with your receipt. Most will issue a refund or credit for overcharges. If the store won't correct it, you can file a complaint with the Department of Revenue.

Do I need to pay sales tax on a car purchase in Illinois?

Yes, but it's handled differently than retail sales tax. Vehicle purchases are subject to tax based on the purchase price, and you pay it when you register the vehicle with the Secretary of State, not at the dealership. The rate and rules are set by the state, not local jurisdictions.

Are digital products like e-books and software taxed?

Digital products and software are generally subject to Illinois sales tax. This includes e-books, apps, streaming subscriptions, and downloadable software. The tax is based on your location at the time of purchase, similar to physical goods.