Chicago's current sales tax rate
Chicago's combined sales tax rate is 10.25% as of 2024. This rate applies to most retail purchases within the city limits. The rate breaks down into a state portion (6.25%), a Cook County portion (2%), and a city portion (2%). The exact rate you pay depends on where in Cook County you make the purchase — some suburbs have different local rates.
The 10.25% rate is one of the highest in the nation. It applies to tangible goods you can touch and take with you: clothing, electronics, groceries (with some exceptions), restaurant meals, and prepared food. Services like haircuts, repairs, and professional fees are generally not taxed.
Key Takeaways
- Chicago's sales tax is 10.25%, made up of 6.25% state tax, 2% Cook County tax, and 2% city tax.
- The tax applies to most retail goods and restaurant meals, but not to most services or unprepared groceries.
- Some items like prescription medications and medical devices are exempt from sales tax.
- Suburbs outside Chicago often have lower rates because they do not charge the full city portion.
What is and is not taxed in Chicago
Most items you buy in a store are taxed at the full 10.25% rate. This includes clothing, shoes, electronics, furniture, toys, and household goods. Restaurant meals and prepared food — including takeout and delivery — are taxed. Alcohol and tobacco products are also taxed at the standard rate, though tobacco has an additional state tax on top.
Unprepared groceries sold in supermarkets are not taxed. This means raw vegetables, meat, dairy, bread, and canned goods have no sales tax. The moment food is prepared or heated for immediate consumption, it becomes taxable. A rotisserie chicken from the grocery store deli is taxed; a raw chicken breast is not.
Prescription medications and certain medical devices are exempt from sales tax. Over-the-counter medications like aspirin or cold medicine are taxed. Services — haircuts, plumbing, car repair, legal advice — are generally not subject to sales tax in Illinois.
How sales tax is calculated at checkout
The store calculates sales tax on the subtotal of your purchase before any discounts or coupons are applied. If you buy an item for $100 and use a $10 coupon, the tax is calculated on the $90 after the discount, not the original $100. The tax amount is then added to your final total.
Most modern cash registers calculate this automatically, so you see the tax broken out on your receipt. The total you pay is the subtotal plus the 10.25% tax. For example, a $50 purchase would have $5.13 in tax added, for a total of $55.13.
Sales tax in Chicago suburbs
If you shop in suburbs outside Chicago but still in Cook County, your rate may be lower. Many suburbs charge only 8.25% or 8.75% because they do not add the full 2% city tax that Chicago does. Evanston, Oak Park, and other municipalities have their own local rates. The state and county portions (6.25% and 2%) are the same everywhere in Cook County, but the local city or village portion varies.
If you travel to DuPage County or Will County, the rates drop further because those counties have lower county tax rates. This is why some Chicago residents shop just outside the city to avoid the higher rate, though the difference is usually only a few dollars on larger purchases.
Online purchases and delivery
Online retailers must now collect and remit sales tax on purchases shipped to Chicago addresses. This applies whether you order from a large national retailer or a smaller online seller. The tax is calculated based on your delivery address, so if you have an item shipped to a Chicago address, the 10.25% rate applies.
Delivery fees and service fees (like those from food delivery apps) are generally taxed as well. A $30 meal with a $5 delivery fee will have tax calculated on the full $35. Some apps show the tax separately; others include it in the final total.
Tax on specific items
Gasoline is taxed, but the tax is included in the pump price you see — it does not appear as a separate line item. Illinois adds a state gas tax on top of federal tax. Cigarettes and vaping products have both sales tax and an additional excise tax. Alcohol has sales tax plus state and federal excise taxes depending on the type (beer, wine, or spirits).
Digital goods like e-books, streaming subscriptions, and downloaded music are taxed in Illinois. A Kindle book or Spotify subscription purchased by someone with a Chicago billing address will have the 10.25% rate applied. Software licenses and cloud services are also taxable.
Frequently Asked Questions
Is clothing taxed in Chicago?
Yes, all clothing and shoes are taxed at the full 10.25% rate in Chicago. Illinois does not exempt clothing from sales tax the way some states do. This includes everything from socks to winter coats.
Do I pay sales tax on groceries?
Unprepared groceries like raw meat, vegetables, bread, and canned goods are not taxed. Prepared foods — deli items, rotisserie chicken, hot bar items, bakery items sold warm — are taxed. If you are unsure, ask the cashier whether an item is considered prepared or unprepared.
Why is Chicago's sales tax so high?
Chicago's rate is high because it layers a city tax (2%) on top of the state (6.25%) and county (2%) rates. The city uses sales tax revenue for municipal services. Other major cities like New York and Los Angeles have comparable or higher combined rates when you add all local and state taxes together.
Do I pay sales tax if I buy something online from out of state?
If the item is shipped to a Chicago address, yes — the seller must collect 10.25% sales tax. This rule applies to nearly all online retailers now, regardless of where their business is located. The only exception is if the seller has no legal obligation to collect tax, which is rare for large retailers.
Are there any tax-free days in Chicago?
Illinois does not have an official statewide sales tax holiday. Some states offer back-to-school or holiday tax-free periods, but Illinois is not one of them. You pay the full 10.25% rate on all taxable purchases year-round.