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News – Tuesday, May 5, 2026
FY 2026-25, Municipal and County Grocery Occupation Tax Rate Changes, Effective July 1, 2026
Effective July 1, 2026, certain municipalities and counties have imposed a local grocery tax rate of exactly one-percent (1%) by ordinance.
For implementation of the tax, municipalities and counties must submit their ordinances to IDOR:
- by April 1 to take effect on July 1 of the same year, or
- by October 1 for implementation on January 1 of the following year.
"Groceries" is defined as food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, candy, or food that has been prepared for immediate consumption).
See Informational Bulletin FY 2026-25, Municipal and County Grocery Occupation Tax Rate Changes, Effective July 1, 2026 for more information.