Illinois Sales Tax Rate and What It Covers
Illinois has a state sales tax of 6.25 percent, which applies to most goods you buy in stores. However, your total sales tax bill depends on where you live, because cities and counties add their own local taxes on top of the state rate. Your actual tax rate ranges from 6.25 percent in areas with no local tax to as high as 10.25 percent or more in some municipalities.
The state tax applies to tangible personal property — things you can touch and take home. Clothing, groceries, electronics, furniture, and gasoline all get taxed. Services like haircuts, car repairs, and plumbing do not get the sales tax, though some services bundled with products (like installation) may be taxed depending on how the transaction is structured.
Food and medicine have special rules. Groceries intended for home consumption are not taxed in Illinois. This means milk, bread, vegetables, and canned goods at a supermarket avoid the sales tax. However, prepared food — restaurant meals, hot deli items, and food from a concession stand — is taxed at the full rate.
Key Takeaways
- Illinois state sales tax is 6.25 percent, but your total rate includes local taxes added by your city or county, which can push the total to 10 percent or higher.
- Groceries for home cooking are not taxed, but prepared food and restaurant meals are taxed at the full rate.
- Clothing, electronics, and most goods are taxed, but services like haircuts and repairs are generally not.
- You pay sales tax at the point of sale — the cashier collects it when you buy something, and the store sends it to the state and local government.
How Local Tax Rates Add to the State Rate
Every city and county in Illinois can set its own local sales tax on top of the 6.25 percent state rate. Cook County (which includes Chicago) adds 1.25 percent, bringing the total to 7.5 percent in most of Chicago. DuPage County adds 1.75 percent. Other counties and municipalities vary widely — some add nothing, others add up to 2.5 percent or more.
The rate you pay depends on the exact address where you make the purchase, not where you live. If you buy something in one municipality and live in another, you pay the tax rate of the place where the store is located. This matters most for people who shop near city or county borders.
To find your exact local rate, search "Illinois sales tax rate" plus your city or zip code, or contact your city or county assessor's office. The Illinois Department of Revenue maintains a database of all local rates by address.
What Happens When You Buy Something
When you purchase an item at a store, the cashier calculates the sales tax based on the item's price and your location's tax rate. The tax is added to your total at checkout — the price tag shows the pre-tax amount, and you pay that amount plus tax. Online purchases follow the same rule if the seller has a physical presence in Illinois or meets certain sales thresholds.
The store collects the tax from you and holds it temporarily. The business then files a sales tax return with the Illinois Department of Revenue, usually monthly or quarterly depending on how much tax they collect. The state keeps 6.25 percent of what was collected and distributes the local portion to cities and counties.
You do not file anything yourself as a buyer — the store handles all the paperwork. The only exception is if you buy something out of state and bring it into Illinois for personal use; in that case, you may owe "use tax," which is the same rate as sales tax. This rarely comes up in practice, and the state does not actively pursue individual use tax claims.
Items That Are Taxed and Items That Are Not
| Taxed | Not Taxed |
|---|---|
| Clothing and shoes | Groceries (unprepared food) |
| Electronics and appliances | Prescription medications |
| Furniture and home goods | Medical devices (hearing aids, prosthetics) |
| Gasoline and fuel | Services (haircuts, repairs, plumbing) |
| Restaurant meals and prepared food | Newspapers and magazines |
| Alcohol and beverages | Residential utilities (electricity, gas) |
The line between taxed and untaxed can be blurry in specific situations. For example, a bakery item sold in a grocery store is usually not taxed, but the same item bought at a bakery counter may be taxed as prepared food. Seeds and plants for growing food are not taxed, but plants sold as decorations are. When in doubt, the store's point-of-sale system is programmed with the correct category, and the cashier will apply the right rate.
If you are unsure whether a particular item should be taxed, you can ask the cashier before you check out. The store's system will show the correct treatment, and you can decide whether to proceed with the purchase.
Sales Tax on Services and Repairs
Most services are not subject to sales tax in Illinois. If you pay a plumber, electrician, mechanic, or contractor for labor, that labor is not taxed. However, if the service includes materials or products, the tax treatment depends on how the bill is structured. A mechanic's labor is not taxed, but the parts they install are taxed if they are sold separately on the invoice.
Some bundled services are taxed as a whole. For example, dry cleaning is taxed because it is considered a service applied to tangible property. Pest control services are taxed. Car washes are taxed. The rule is not always obvious, and businesses sometimes disagree with the Department of Revenue about whether a particular service should be taxed.
If you receive an invoice that seems wrong — for example, you were charged tax on labor that should not be taxed — you can contact the Illinois Department of Revenue to ask. They will not refund your money, but they can tell you whether the business charged correctly, and you can dispute it with the business directly.
How Sales Tax Differs From Income Tax
Sales tax and income tax are separate. Illinois has a state income tax of 4.95 percent on wages and other income. This is completely different from sales tax — you pay income tax on money you earn, and sales tax on money you spend. Both apply to most people, and both go to the state government (though local income tax also exists in some municipalities).
A purchase that costs $100 before tax will cost you $106.25 or more after sales tax is added, depending on your location. That $6.25 or more goes to sales tax. If you earned the $100 as wages, you already paid income tax on it before you received it. The two taxes are independent and do not offset each other.
Frequently Asked Questions
Do I pay sales tax on online purchases from Illinois stores?
Yes, if the seller has a physical location in Illinois or meets federal sales tax thresholds, they must collect sales tax on your purchase. The rate depends on where the item is being shipped within Illinois. If you order from a store outside Illinois that has no physical presence here, sales tax may not be collected, though you technically owe use tax to Illinois.
What if a store charges me the wrong sales tax rate?
If you notice the tax charged does not match your location's rate, ask the cashier or manager to check. Most point-of-sale systems are programmed with the correct rate for that address. If the error is large or repeated, you can contact the Illinois Department of Revenue to report it, though they do not process individual refund requests.
Do I owe sales tax on items I buy outside Illinois and bring home?
Technically, you owe use tax on out-of-state purchases brought into Illinois for personal use, at the same rate as sales tax. In practice, Illinois does not enforce this on individual consumers. Businesses that buy items out of state for resale must track and report use tax.
Is there a sales tax on services like haircuts or car repairs?
No, labor and services are generally not taxed. However, if the invoice includes products (like hair products or car parts), those items may be taxed separately. Ask your service provider if you want to know whether a specific charge includes tax.