Qualifying food, drugs, and medical appliances are taxed at a lower rate (1 percent) than general merchandise (6.25 percent).
"Food" with respect to food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, candy and food that has been prepared for immediate consumption), the tax is imposed at the rate of 1%.
The manner in which food is taxed depends upon 2 distinct factors that must both be considered in determining if food is taxed at the high rate as "food prepared for immediate consumption" or the low rate as "food prepared for consumption off the premises where sold".
See Illinois Administrative Code, Section 130.310 for more details on qualifying and non-qualifying Food, Soft Drinks and Candy.
"Drugs" with respect to prescription and non-prescription medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose of rendering it usable by a disabled person and insulin, urine testing utensils, syringes and needles used by diabetics, for human use, the tax is imposed at the rate of 1%. Grooming and hygiene products do not qualify for the 1% rate, regardless of whether the products make medicinal claims. Grooming and hygiene products are taxed at the general merchandise rate of 6.25%.
"Medicines and Drugs" except for grooming and hygiene products described in subsection (c), a medicine or drug is any pill, powder, potion, salve or other preparation for human use that purports on the label to have medicinal qualities. Medicines prescribed by veterinarians for animals are subject to the high rate of tax. A written claim on the label that a product is intended to cure or treat disease, illness, injury or pain or to mitigate the symptoms of such disease, illness, injury or pain constitutes a medicinal claim.
"Medical Appliances" a medical appliance is an item that is used to directly substitute for a malfunctioning part of the human body.
See Illinois Administrative Code, Section 130.311 for more details on qualifying and non- qualifying Drugs, Medicines, Medical Appliances, and Grooming and Hygiene Products