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What local taxes may be imposed in addition to Illinois sales tax?
In a sale at retail, the combined sales tax rate may include all retailers’ occupation and use taxes imposed by the State and units of local government. “Units of local government” means counties, municipalities, townships, special districts (e.g., mass transit district, park district) and units designated as units of local government by law. “Municipalities” means cities, villages, and incorporated towns. Ill. Const. art. VII, § 1. Tax rates are subject to change twice a year on January 1 and July 1. Use the Tax Rate Finder to find sales tax rates for specific locations in Illinois but note that it only lists taxes that are collected by the Illinois Department of Revenue.
See Page 2 of PIO-114, How Sales and Use Taxes are Distributed, for a list of locally-imposed occupation and use taxes administered by IDOR. NOTE: PIO-114 does not include Cannabis, Aviation, Rental, Chicago Soft Drink, MPEA Food and Beverage, Telecommunication, or Motor Fuel taxes.
Note: Effective January 1, 2026, the State of Illinois will eliminate the one-percent (1%) sales and use tax on grocery sales. This change in law also authorizes municipalities and counties to impose a local grocery tax rate of exactly one-percent (1%) by ordinance. See Public Act 103-0781. For more information, see Informational Bulletin FY 2026-03, Illinois Grocery Tax Changes Effective January 1, 2026.