The current sales tax rate in Chicago is 10.25%

Chicago's sales tax is made up of multiple layers: the Illinois state sales tax of 6.25%, Cook County's tax of 1.25%, and the city of Chicago's tax of 2.25%. When you buy something in Chicago, the seller adds all three together. The total you see on your receipt is 10.25% of the purchase price.

This rate applies to most goods you buy in stores, online orders shipped to Chicago addresses, and many services. The rate has been stable since 2016, though individual components have changed over the years as the city and county adjusted their portions.

Key Takeaways

  • Chicago's 10.25% sales tax combines the state rate (6.25%), county rate (1.25%), and city rate (2.25%).
  • The tax applies to most retail purchases, groceries, clothing, and many services performed in Chicago.
  • Some items are exempt from sales tax, including prescription medications, medical equipment, and certain food items.
  • Online purchases are taxed at the same rate if they ship to a Chicago address, regardless of where the seller is located.

What items are taxed and what items are not

Most things you buy in Chicago are subject to the full 10.25% tax. This includes clothing, shoes, electronics, furniture, restaurant meals, and prepared foods. Groceries sold in supermarkets—like bread, milk, vegetables, and canned goods—are also taxed in Illinois, unlike in many other states.

Several categories are exempt from sales tax. Prescription medications and insulin are not taxed. Medical equipment like wheelchairs, crutches, and hearing aids are exempt. Certain services are also tax-free: haircuts and salon services, dry cleaning, and vehicle repairs do not have sales tax added. Newspapers and magazines are exempt as well.

The line between taxed and untaxed can be confusing for some items. For example, a candy bar is taxed, but a loaf of bread is also taxed. A hot pizza slice from a restaurant counter is taxed as prepared food, but a frozen pizza from a grocery store is also taxed. If you are unsure whether something should be taxed, the receipt will show it.

How sales tax works on online orders

When you order something online and have it shipped to a Chicago address, the seller must charge you Chicago's 10.25% sales tax at checkout. This applies whether the seller is based in Illinois, another state, or another country. The tax is calculated on the item price plus shipping.

Some online sellers may not charge tax at the time of purchase if their system is not set up to recognize Chicago addresses. If this happens, you are not responsible for tracking down the tax later—the seller is responsible for remitting it to the city and state. However, the safest approach is to check your receipt and contact the seller if tax was not included.

Sales tax on services and labor

Not all services are taxed the same way. Labor and services that are considered "personal services" are generally not taxed—this includes haircuts, massages, and plumbing repairs. However, if you buy a product as part of that service, the product itself may be taxed. For example, if a salon sells you shampoo, that shampoo is taxed, but the haircut labor is not.

Professional services like accounting, legal advice, and consulting are not subject to sales tax. Repair services for items like cars, appliances, and electronics are also not taxed, though any parts used in the repair may be taxed separately depending on how the bill is itemized.

How to read your receipt and verify the tax

Your receipt should show the subtotal (the price before tax), the tax amount, and the total. To verify the math, multiply the subtotal by 0.1025. For example, if your subtotal is $100, the tax should be $10.25, making your total $110.25.

If the tax shown on your receipt does not match this calculation, it could mean the item was exempt, the tax rate was different, or there was an error. Most modern registers calculate this automatically, so errors are rare. If you notice a significant difference, you can ask the cashier or check your receipt details.

Sales tax rates in nearby areas

If you shop just outside Chicago, the rate changes. In unincorporated Cook County (areas outside the city), the rate is 8.5%—lower because you do not pay Chicago's 2.25% city tax. In nearby suburbs like Evanston or Oak Park, rates vary between 8% and 9% depending on local taxes. In DuPage County, the rate is typically 8.25%.

This matters if you are comparing prices between Chicago and nearby areas. A $100 item in Chicago costs $110.25 after tax, but the same item in an unincorporated area of Cook County would cost $108.50. Some people make larger purchases in lower-tax areas, though shipping costs often offset the savings.

Frequently Asked Questions

Does Chicago sales tax apply to groceries?

Yes. Illinois taxes most grocery items, including fresh produce, meat, dairy, and canned goods. This is different from many states that exempt groceries. Prepared foods like deli items and hot foods are also taxed.

Do I pay sales tax on online orders from out-of-state sellers?

Yes. If the order ships to a Chicago address, you pay Chicago's 10.25% sales tax regardless of where the seller is located. The seller is required to collect and remit this tax.

Are prescription drugs taxed in Chicago?

No. Prescription medications are exempt from sales tax in Illinois. Over-the-counter medications like pain relievers and cold medicine are taxed, but prescription drugs are not.

What is the sales tax on restaurant meals?

Restaurant meals, including dine-in, takeout, and delivery, are subject to the full 10.25% sales tax. This applies to all food and beverages ordered at restaurants, cafes, and food trucks.

Is there a sales tax on clothing and shoes?

Yes. Unlike some states, Illinois taxes clothing and shoes at the full sales tax rate. There is no clothing exemption in Chicago.