Illinois has a base sales tax of 6.25%, but your total rate depends on local taxes added by your county and municipality

The state of Illinois charges 6.25% sales tax on most retail purchases. However, the total tax you pay at checkout is almost always higher because counties and cities add their own local sales taxes on top of the state rate. Your actual rate can range from 6.25% to over 10%, depending on where you shop. The tax is collected by the retailer and sent to the state and local governments.

Illinois does not allow you to deduct sales tax later or get it back. The tax is final at the point of sale. If you buy something in one municipality and use it in another, you pay the tax rate where you made the purchase, not where you live or use the item.

Key Takeaways

  • Illinois state sales tax is 6.25%, but local county and city taxes add to this amount, making your total rate vary by location.
  • Most tangible goods are taxed, including clothing, groceries at some retailers, and prepared food, but rules differ by product type.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax in Illinois.
  • You pay the sales tax rate of the location where you make the purchase, not where you live or use the item.

How local taxes stack on top of the state rate

After the 6.25% state tax, your county adds a tax (usually between 0.5% and 2%), and your city or village may add another layer (usually between 0.5% and 1.5%). Cook County, which includes Chicago, has a county rate of 1.25% plus varying city rates. A purchase in Chicago itself may have a combined rate of 10.25% or higher depending on the specific neighborhood.

To find your exact local rate, you need to know both your county and your specific municipality. The Illinois Department of Revenue publishes a complete list of all local rates by location. You can also call your city or county assessor's office, or ask the retailer what rate applies to your purchase.

Some municipalities have special local taxes on top of the standard combined rate. For example, some cities add a small additional tax on prepared food or hotel stays. These are less common but do exist, so the rate you see on a receipt may be higher than the standard county-plus-city calculation.

What products and services are taxed

Most tangible goods sold in Illinois are subject to sales tax: clothing, electronics, furniture, toys, books, and household items. Groceries purchased at a supermarket for home consumption are not taxed, but prepared food (deli items, hot food, restaurant meals) is taxed. The distinction matters: a cold sandwich from a grocery store deli may or may not be taxed depending on how it is packaged and labeled.

Services are generally not taxed in Illinois. A haircut, car repair, plumbing work, or medical appointment does not have sales tax added. However, if you buy a product as part of that service (for example, a new part installed during a repair), the product itself may be taxed depending on the circumstances and how the invoice is written.

Digital goods and software have specific rules. Downloaded software, e-books, and digital subscriptions are generally not taxed, but this can vary by the type of digital product and how the vendor classifies it. If you are unsure whether a digital purchase will be taxed, check the vendor's terms or contact the Illinois Department of Revenue.

Tax-exempt purchases and who qualifies

Certain organizations and individuals do not pay sales tax on specific purchases. Nonprofits, schools, and government agencies can buy items tax-free if they have a tax-exempt certificate from the state. Religious organizations may also may have access to for exemptions on certain purchases. To use an exemption, you must provide the seller with a valid certificate before the sale.

Resellers who buy goods to resell them can purchase without paying sales tax if they have a resale certificate. This prevents tax from being charged twice (once at wholesale, once at retail). You cannot use a resale certificate for personal purchases.

Individuals do not receive a general sales tax exemption based on income or status. However, some states offer exemptions for specific items like prescription medications or medical equipment. Illinois does not tax prescription drugs, but over-the-counter medications are taxed like other retail goods.

How sales tax appears on your receipt and invoice

When you buy something in Illinois, the retailer must show the sales tax separately on your receipt. The receipt should list the subtotal, the tax amount, and the total. The tax line should show the combined state and local rate as a single percentage or dollar amount. If you see multiple tax lines, that usually means the retailer is breaking down state tax separately from local tax for their own accounting purposes.

Online purchases from out-of-state sellers follow different rules. If the seller has a physical location or employees in Illinois, they must collect Illinois sales tax. If they do not, they are not required to collect it, though you are technically responsible for paying "use tax" to Illinois on those purchases (most people do not). In practice, many large online retailers now collect sales tax in Illinois regardless of where they are based.

Differences between sales tax and use tax

Use tax is a tax on goods you buy outside Illinois and bring into the state for use here. It is meant to prevent people from avoiding sales tax by shopping in neighboring states. The use tax rate is the same as the sales tax rate in your home county and municipality. You are responsible for reporting and paying use tax yourself on your state income tax return, though few people do.

Use tax applies to mail orders, online purchases from out-of-state sellers who do not collect tax, and items you physically carry across state lines. If you buy something in Indiana and bring it home to Illinois, you owe use tax at your Illinois rate. However, if the seller already collected Illinois sales tax (which many do now), you do not owe additional use tax.

Finding your specific sales tax rate

To find the exact rate for your location, start with the Illinois Department of Revenue website, which has a searchable database of all county and municipal rates. You can search by zip code or by typing in your city name. The database is updated regularly as municipalities change their rates.

You can also contact your city or county assessor's office by phone. They can tell you the combined rate for your address in seconds. If you are buying something in a different location, ask the retailer what rate they will charge, or call the municipality where the store is located.

Keep in mind that rates can change. Municipalities update their local tax rates periodically, sometimes multiple times per year. If you are budgeting for a large purchase, check the current rate close to your purchase date rather than relying on a rate you looked up months earlier.

Frequently Asked Questions

Is clothing taxed in Illinois?

Yes, most clothing is subject to Illinois sales tax. There is no clothing exemption in Illinois, unlike some other states. This includes shoes, accessories, and all types of apparel. The tax applies at the combined state and local rate for the location where you make the purchase.

Do I pay sales tax on groceries?

Unprepared groceries for home consumption are not taxed in Illinois. This includes raw meat, produce, bread, milk, and canned goods. However, prepared foods (hot deli items, restaurant meals, bakery items sold warm) are taxed. The line between prepared and unprepared can be unclear, so ask the cashier if you are unsure.

What is the sales tax rate in Chicago?

Chicago's combined sales tax rate is 10.25%, made up of the 6.25% state rate, 1.25% Cook County rate, and 2.25% city rate. However, some items like groceries and prescription drugs are not taxed. Rates in other Cook County municipalities vary, so check your specific city if you are outside Chicago.

Do I have to pay sales tax on online purchases?

If the online seller has a physical presence in Illinois or meets certain economic thresholds, they must collect and remit Illinois sales tax. Most large retailers now collect sales tax on Illinois purchases. If they do not, you are technically responsible for use tax, though it is rarely enforced for individual purchases.

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

No, sales tax in Illinois is final at the point of sale and cannot be refunded or deducted later. If you return an item and receive a refund, the sales tax is refunded as part of that refund. If you paid tax on something you later found out should have been exempt, you would need to contact the retailer or the Illinois Department of Revenue to dispute it.