Illinois calls its sales tax the retailers' occupation tax (ROT), and its companion for purchases made outside the state is the use tax. The 2026 change that matters most is groceries: the state's own 1% tax on them ended on 1 January 2026, and local governments were authorised to replace it with a 1% tax of their own.
This guide sets out the state rates, what changed for groceries, how use tax works, and where to find the rate for a specific address, using the Illinois Department of Revenue (IDOR) pages and bulletins read on 2 November 2026. We do not print a table of local rates, because IDOR publishes no list of them and local rates change.
IDOR states that Illinois' general state retailers' occupation and use tax rate is 6.25 percent on general merchandise, including items required to be titled or registered by an agency of Illinois state government, and 1 percent on qualifying drugs and medical appliances. Local taxes can add to these state rates.
| Item | State tax | Local tax |
|---|---|---|
| General merchandise (including titled or registered items) | 6.25% | May apply |
| Qualifying drugs and medical appliances | 1% | Check the rate finder for the address; NITA transit tax also applies in six northern counties |
| Groceries (food for off-premises consumption) | None since 1 Jan 2026 | Exactly 1% only where the city or county has imposed it; NITA transit tax also applies in six northern counties |
| Alcohol, cannabis-infused food, soft drinks, candy, food prepared for immediate consumption | 6.25% (general merchandise rate) | May apply |
IDOR notes that it does not publish a list of all occupation and use tax rates; its Tax Rate Finder gives the rate for a specific location.
Illinois eliminated its state one-percent sales and use tax on grocery sales effective 1 January 2026. The same law authorises municipalities and counties to impose a local grocery tax of exactly 1 percent by ordinance. IDOR says that where a local grocery tax is imposed, the rate on groceries remains the same as before 1 January 2026; the change is only the line on the retailer's return.
That means two shoppers can pay different amounts on identical groceries. Groceries are exempt from State tax and are only subject to tax in locations where a local grocery tax has been imposed. IDOR states that the local grocery tax in locations within the Regional Transportation Authority (RTA) or Metro-East Mass Transit District (MED) has not been eliminated.
The RTA is now called the Northern Illinois Transit Authority (NITA). IDOR bulletin FY 2026-34 (June 2026) says the NITA occupation and use tax rate increases by 0.25% from 1 August 2026. For retailers selling from a location in Cook County the new NITA rate is 1.25% on general merchandise and 1.50% on groceries and on qualifying drugs and medical appliances. In DuPage, Kane, Lake, McHenry and Will counties it is 1.00% on general merchandise, groceries, and drugs and medical appliances. These NITA rates are added to the state rate and any other local taxes, so groceries in those counties are taxed even though the state grocery tax is gone.
IDOR defines groceries as food for human consumption to be consumed off the premises where it is sold, other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, candy, or food prepared for immediate consumption. Those excluded items continue to be taxed at the general merchandise rate.
Local governments can adopt the tax in stages. Ordinances filed by 1 April take effect on 1 July of the same year, and those filed by 1 October take effect on 1 January of the following year. IDOR bulletin FY 2026-25 (May 2026) lists further municipalities and counties that imposed the 1% grocery tax effective 1 July 2026. If both the county and the municipality impose it, the grocery tax rate is still 1 percent. Ordinances filed by 1 October 2026 would take effect on 1 January 2027; as of 2 November 2026 we did not find an IDOR bulletin listing any. Check the Tax Rate Finder for your address, because the list can grow.
The grocery change did not touch medicine. IDOR states that the State's one-percent sales and use tax continues to be imposed on items that meet the definition of qualifying drugs or medical appliances. Food items that qualify as medicines or drugs are not groceries and continue to be taxed at the State low rate of 1 percent.
Use tax is imposed on the privilege of using, in Illinois, any item of tangible personal property purchased anywhere at retail. IDOR lists purchases from out-of-state, unregistered retailers without paying tax to the retailer as an example of use tax liability. The use tax rate is 6.25 percent on general merchandise, including automobiles and other items that must be titled or registered. Individuals can pay use tax on Form ST-44, Illinois Use Tax Return.
IDOR's own example is a person who buys $1,000 of merchandise abroad on which no tax is paid, then files Form ST-44 and pays $62.50.
One caution: IDOR's use tax page, as we read it, still describes a 1 percent use tax rate on qualifying food, which predates the grocery change. For groceries, follow the bulletin and PIO-115 described above.
These are our arithmetic on the rates above, not official calculations. They show the state portion only (plus the 1% local grocery tax in the one row that says so); other local taxes, where they apply, are added on top and depend on the address.
| Purchase (our illustration) | Rate applied | Tax |
|---|---|---|
| $200 of general merchandise, state tax only | 6.25% | $12.50 |
| $80 of qualifying medicine, state tax only | 1% | $0.80 |
| $150 of groceries, state tax | None | $0.00 |
| $150 of groceries where a 1% local grocery tax applies | 1% | $1.50 |
| $1,000 of general merchandise bought without tax (use tax) | 6.25% | $62.50 |
Combined rates depend on the state rate, any municipal or county rate and any transit district. IDOR directs retailers to the MyTax Illinois Tax Rate Finder at mytax.illinois.gov, where the rates for a given period can be selected (its bulletins refer to rates for January, July and August 2026 periods). Select the period that matches your purchase date.
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