Illinois charges a base sales tax of 6.25 percent on most goods, but your total rate depends on where you live

The state of Illinois sets a 6.25 percent sales tax on retail purchases. However, most counties and municipalities add their own local tax on top of that. Your actual rate — what you see on a receipt — is the state rate plus any local additions. This means the total can range from 6.25 percent in areas with no local tax to over 10 percent in some cities and counties.

Sales tax is collected by the seller at the point of sale and sent to the Illinois Department of Revenue. You do not pay it separately; it is added to the price of taxable items when you check out. The tax applies to tangible goods — things you can touch and take home — but not to services in most cases.

Key Takeaways

  • Illinois state sales tax is 6.25 percent, but local taxes add 0.25 to 4.75 percent more depending on your city or county.
  • Sales tax applies to clothing, groceries, household goods, and most other items you buy in a store or online.
  • Food purchased at restaurants and prepared foods are taxed, but unprepared groceries like raw vegetables and meat are not.
  • You can find your exact local rate by entering your address on the Illinois Department of Revenue website or asking a retailer.

How local taxes stack on top of the state rate

Illinois allows counties and cities to add their own sales tax on top of the state 6.25 percent. A county might add 1 percent, and then a city within that county might add another 0.5 percent. All three rates — state, county, and city — combine into one total that you pay at checkout.

The local portion goes to the county or city government, not to the state. This is why the same item costs different amounts in sales tax depending on which neighborhood or suburb you shop in. Cook County (which includes Chicago) has different rates than DuPage County. Within Cook County, Chicago's rate differs from Evanston's rate.

To find your exact rate, enter your address on the Illinois Department of Revenue website, or ask the cashier where you shop. Your receipt will show the total tax charged.

What is and is not taxed in Illinois

Most tangible goods are taxed: clothing, shoes, electronics, furniture, toys, books, and household supplies. Groceries are partially taxed — unprepared foods like raw vegetables, meat, milk, and bread are not taxed, but prepared foods and items sold in the deli section are. Candy and soft drinks are taxed even though they are food.

Services are generally not taxed. Haircuts, car repairs, medical visits, and plumbing work do not have sales tax added. However, some services bundled with goods — like installation or delivery — may be taxed depending on how the seller reports it.

Prescription medications are not taxed. Over-the-counter drugs like pain relievers and cold medicine are taxed. Diapers and feminine hygiene products were tax-exempt as of 2022, though tax law changes periodically.

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 certain sales thresholds, Illinois sales tax is added to your order. Large retailers like Amazon, Walmart, and Target collect Illinois sales tax on orders shipped to Illinois addresses.

If you buy from a small out-of-state seller with no Illinois presence, they may not collect sales tax at checkout. However, Illinois residents are technically required to pay "use tax" on untaxed purchases — a tax equal to the sales tax rate that would have applied. In practice, use tax is rarely enforced for individual purchases, but it is a legal obligation.

Tax-exempt purchases and who qualifies

Certain organizations and people do not pay sales tax on specific purchases. Nonprofits with a valid tax-exempt certificate can buy goods without sales tax if the items are used for the organization's mission. Schools and government agencies have similar exemptions for official purchases.

Resellers — people who buy goods to resell them — can provide a resale certificate to avoid paying sales tax on their inventory. The tax is then paid by the end customer instead.

Individual shoppers do not have a blanket exemption. If you are buying for personal use, you pay sales tax. There is no income-based exemption or hardship waiver for sales tax on everyday purchases.

How to understand your receipt and verify the tax charged

Your receipt shows the subtotal (the price before tax), the tax amount, and the total (subtotal plus tax). The tax line should show the rate applied — for example, "Tax (8.25%): $4.12" on a $50 purchase. You can verify this is correct by checking your local rate on the Illinois Department of Revenue website.

If the tax seems wrong, the most common cause is that the item was miscategorized by the register — for example, a taxable item rung up as non-taxable, or vice versa. Ask the cashier to review the item. Errors are usually corrected at the register before you leave.

Keep your receipt if you need to return an item. The refund should include the tax you paid, and the store will reverse the tax line along with the purchase price.

Frequently Asked Questions

Why is my sales tax different from the store next door?

Different stores may be in different cities or counties, even if they are close together. Chicago and Evanston, for example, have different combined rates. Enter your exact address on the Illinois Department of Revenue website to see your rate, or ask the cashier at each store.

Do I pay sales tax on groceries?

Unprepared groceries — raw meat, vegetables, bread, milk, eggs — are not taxed. Prepared foods from a deli counter, restaurant, or bakery section are taxed. Candy, soda, and energy drinks are taxed even though they are food items.

Is sales tax the same online as in the store?

If the online retailer has a presence in Illinois or meets sales thresholds, they collect the same sales tax as a physical store in your area would. Small out-of-state sellers may not collect tax, though you are technically required to pay use tax on those purchases.

Can I get a refund of sales tax I already paid?

Sales tax is not refunded unless you return the item. When you return a purchase, the store refunds both the price and the tax. If you overpaid tax due to a register error, ask the cashier to correct it before you leave the store.

What happens if a store charges the wrong tax rate?

Overcharging tax is a mistake, not a crime on your part. If you notice it on your receipt, point it out to the cashier and ask for a correction. For large overcharges, you can contact the Illinois Department of Revenue, though they focus on seller compliance rather than individual transactions.