Illinois charges a base sales tax of 6.25 percent on most goods, plus local taxes that vary by county and municipality

When you buy something in Illinois, the price on the shelf does not include sales tax. At checkout, the store adds tax to your total. The state collects 6.25 percent. Your city or county may add more — anywhere from 0 to 2.25 percent depending on where you live. A $100 purchase in one part of Illinois might cost $106.25 in tax; in another part it might cost $108 or more.

The total tax rate you pay depends on your exact location. Two stores on opposite sides of a county line can charge different totals. Before you buy something expensive, you can look up your local rate on the Illinois Department of Revenue website or ask the store what tax applies to your address.

Key Takeaways

  • Illinois state sales tax is 6.25 percent, but your actual rate is higher because counties and cities add local taxes on top.
  • Local tax rates range from 0 to 2.25 percent, so the total you pay depends on your exact location.
  • Most physical goods are taxed, but groceries, prescription medications, and medical equipment are usually exempt.
  • Online purchases from out-of-state sellers are subject to Illinois tax if the seller has a physical presence in the state or meets federal reporting thresholds.
  • You can find your exact local tax rate by entering your address on the Illinois Department of Revenue website.

What gets taxed and what does not

Illinois taxes most items you buy in a store — clothing, electronics, furniture, toys, and household goods all have sales tax added. However, some categories are exempt. Groceries (unprepared food you cook at home) are not taxed. Prescription medications and certain medical devices are exempt. Diapers and feminine hygiene products became tax-exempt in 2021.

Services are usually not taxed in Illinois, though there are exceptions. A haircut or plumbing repair is not subject to sales tax. But if you buy a haircut and a bottle of shampoo in the same transaction, only the shampoo is taxed. Restaurant meals and prepared foods are taxed, even if you take them home. The difference is whether the food is ready to eat or requires preparation.

How local taxes stack on top of the state rate

Illinois divides sales tax into layers. The state takes 6.25 percent. Then your county adds a tax (usually 0.25 to 1.25 percent). Then your city or municipality may add another layer (usually 0 to 1 percent). Some special districts — like public transportation authorities or convention centers — add a small percentage in their area only.

Cook County (which includes Chicago) has a combined state and local rate of 10.25 percent in most of the city. DuPage County is 8.25 percent. Rural counties can be as low as 6.25 percent (state only). The Illinois Department of Revenue publishes a tax rate lookup tool where you enter your street address and it shows you the exact rate that applies.

Sales tax on online and out-of-state purchases

If you order something online from a company that has a warehouse, office, or other physical location in Illinois, Illinois sales tax applies. If you order from a company with no presence in Illinois, the company is not required to collect Illinois tax at checkout — but you are technically responsible for paying "use tax" on your state income tax return. Most people do not, and enforcement is minimal.

Large online retailers like Amazon, Walmart, and Target collect Illinois sales tax on all orders because they have distribution centers in the state. Smaller sellers may not. The rule changed in 2018 when federal law required sellers to collect tax if they have a certain sales volume in a state, regardless of whether they have a physical location there. If you are unsure whether tax was collected, check your receipt or contact the seller.

Who collects the tax and where the money goes

The store or online seller collects sales tax from you at the point of sale. They hold it and send it to the Illinois Department of Revenue, which distributes it to the state, the county, and the city or municipality. The state keeps its 6.25 percent share. Local governments use their portion for schools, roads, police, and other services.

Businesses file sales tax returns monthly or quarterly, depending on their size. Small businesses may file annually. The Department of Revenue audits some returns to make sure the correct amount was collected and sent in. If a business underpays, they owe back taxes plus penalties and interest.

Tax-exempt purchases and who can make them

Certain organizations — nonprofits, schools, government agencies, and religious institutions — can buy items without paying sales tax if they have a tax-exempt certificate from the state. A nonprofit buying office supplies or a school buying textbooks does not pay tax. A person shopping for personal use cannot claim tax-exempt status, even if they work for a nonprofit.

Resellers (businesses that buy goods to resell to customers) can buy from wholesalers without paying tax by providing a resale certificate. They collect tax from their customers instead. This prevents the same item from being taxed twice — once at wholesale and again at retail.

Frequently Asked Questions

Does Illinois tax clothing and shoes?

Yes, clothing and shoes are subject to sales tax in Illinois. There is no clothing exemption. A shirt, pair of jeans, or pair of shoes will have tax added at checkout, just like any other retail item.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller when you buy something. Use tax is a tax you owe on items you buy from out-of-state sellers who did not collect Illinois tax. You are supposed to report and pay use tax on your state income tax return, though most individuals do not. The rate is the same as sales tax for your location.

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

No. Sales tax is final once you pay it. If you return an item and get a refund, the store refunds the tax along with the purchase price. If you believe you were overcharged, contact the store first. Disputes with the Department of Revenue are rare and require documentation.

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

Yes. When you buy a vehicle from a dealer, sales tax applies to the purchase price. The tax is calculated and collected at the time of sale. If you buy a used car from a private person, you still owe tax when you register it with the Secretary of State, and the registration fee includes the tax calculation.

How do I find out what tax rate applies to my address?

Go to the Illinois Department of Revenue website and use their sales tax rate lookup tool. Enter your street address, city, and ZIP code. The tool will show you the state rate, local rate, and combined total. You can also call the Department of Revenue or ask the store you are shopping at.