Illinois has a 6.25% state sales tax, but your total rate depends on local taxes in your county or city

The state of Illinois charges 6.25% sales tax on most retail purchases. However, that is not the full amount you pay at checkout. Your city or county adds its own local sales tax on top of the state rate, which means the total you see on your receipt varies by location. A purchase in Chicago costs more in tax than the same purchase in a suburb or downstate town.

Local tax rates range from 0.25% to 2.25% depending on where you live. Some counties have no additional local tax at all, while others layer multiple local taxes together. The total combined rate across Illinois ranges from 6.25% (state only, in a few areas) to as high as 10.25% in certain cities.

Key Takeaways

  • Illinois state sales tax is 6.25%, but you pay more when you add local taxes from your city or county.
  • Local tax rates vary from 0% to 2.25% depending on your exact location, making combined rates range from 6.25% to 10.25%.
  • Most tangible goods are taxed, but groceries, prescription medications, and certain medical equipment are exempt.
  • You can find your exact local rate by entering your address on the Illinois Department of Revenue website or asking a retailer in your area.

How local taxes stack on top of the state rate

When you buy something in Illinois, the retailer collects tax in layers. First comes the 6.25% state tax. Then your municipality adds its own rate, which goes to your city or village. Then your county may add another layer for county services. Some special districts—like transit authorities or public safety districts—add a fourth layer.

This is why two people buying the same item in different towns pay different amounts in tax. Someone in Chicago pays more local tax than someone in Naperville, even though both are in the same county. The Illinois Department of Revenue publishes a complete tax rate table by ZIP code, which is the most reliable way to find your exact combined rate.

What is and is not subject to sales tax in Illinois

Most items you buy in a store are taxed: clothing, electronics, furniture, household goods, and most food and beverages. However, Illinois exempts several categories. Groceries—unprepared food you cook at home—are not taxed. Prescription medications are exempt. Certain medical equipment and mobility aids, when prescribed by a doctor, are also exempt.

Restaurant meals and prepared foods are taxed, even if you take them home. Candy and soft drinks are taxed. Alcohol is taxed at the regular sales tax rate (plus state and federal excise taxes on top). Services are generally not taxed—haircuts, repairs, and labor are not subject to sales tax, though the parts or materials used in those services may be.

Some purchases are tax-exempt for specific groups. Nonprofit organizations with a valid exemption certificate do not pay sales tax on purchases for their operations. Resellers with a resale certificate do not pay tax on inventory they will resell.

Finding your exact sales tax rate by location

The fastest way to find your rate is to visit the Illinois Department of Revenue website and use their sales tax rate lookup tool. You enter your street address or ZIP code, and the tool returns your combined state and local rate. This is accurate as of the date you check it.

You can also call a local retailer and ask what tax rate they charge, or look at a recent receipt from a purchase in your area. The tax amount and rate are printed on every receipt. If you are moving to Illinois or shopping in a different city, checking before you go takes the guesswork out of budgeting.

When sales tax rates change in Illinois

The state rate of 6.25% has been in place since 1983 and does not change often. However, local rates do change when cities or counties pass new ordinances. These changes usually take effect on the first day of a month and are announced in advance by the local government.

The Illinois Department of Revenue updates its rate tables when local changes happen, so the lookup tool always reflects the current rate. If you are tracking tax for a business or making a large purchase, it is worth checking the current rate a day or two before you buy, since local rates can shift.

How sales tax works for online and out-of-state purchases

If you order something online from a retailer that has a physical location in Illinois or meets certain sales thresholds, Illinois sales tax applies to your purchase. The retailer collects the tax based on the address where you are having the item shipped. If you live in Chicago, you pay Chicago's combined rate, even if the retailer is based elsewhere.

If you order from an out-of-state retailer with no Illinois presence and no obligation to collect Illinois tax, you technically owe "use tax" on that purchase—a tax equal to the sales tax you would have paid. However, use tax is rarely enforced for individual consumers. Businesses are expected to track and report use tax on their tax returns.

Frequently Asked Questions

Is clothing taxed in Illinois?

Yes, most clothing is subject to the full sales tax rate. Illinois does not have a clothing exemption like some states do. This applies to shoes, accessories, and all apparel.

Are groceries taxed?

No. Unprepared food you buy at a grocery store to cook at home is not taxed. This includes produce, meat, dairy, and packaged foods. However, prepared foods—deli items, hot foods, and restaurant meals—are taxed.

What is the sales tax in Chicago?

Chicago's combined sales tax rate is 10.25%: 6.25% state plus 4% local (which includes city, county, and transit taxes). This is one of the highest rates in Illinois.

Do I pay sales tax on services?

Services themselves are generally not taxed in Illinois. A haircut, car repair, or plumbing visit is not subject to sales tax. However, any materials or parts the service provider sells you as part of the job may be taxed.

Can I return something and get the sales tax back?

When you return an item and receive a refund, the sales tax is refunded along with the purchase price. The refund amount on your receipt or credit card will include the tax you paid.