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Informational
Bulletin

FY 2026-25
May 2026

David Harris, Director

This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.

For more information visit: tax.illinois.gov

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Municipal and County Grocery Occupation Tax Rate Changes, Effective July 1, 2026

To: Retailers engaged in the business of selling groceries

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).

What are retailer responsibilities for sales of groceries?

The list below outlines the municipalities and counties that have imposed a local grocery tax rate of exactly one-percent (1%) by ordinance collected by IDOR, effective July 1, 2026. Retailers are responsible for verifying whether a municipality where they make sales or a county where they make sales, if they make sales in an unincorporated area of the county, has imposed a local grocery tax.

To verify your combined sales tax rate (which includes State and local sales taxes), go to the MyTax Illinois Tax Rate Finder at mytax.illinois.gov and select rates for July 2026.

If the county and municipality where I make sales both impose a local grocery tax, what will the tax rate be?

Counties are only authorized to impose a grocery tax in the unincorporated area of the county. As a result, even if the local grocery tax is implemented by both the municipality and the county where you make sales, the grocery tax rate will still be one-percent (1%). Note that the additional Regional Transportation Authority (RTA) and Metro-East Mass Transit District (MED) grocery taxes remain in effect.

Where can I find more information about Municipal and County Grocery Occupation Taxes?

For more information, see IDOR's website at tax.illinois.gov.

Municipalities That have Imposed a One-percent (1%) Grocery Tax Effective July 1, 2026

Alexis (Mercer) Flat Rock Mundelein
Alexis (Warren) Germantown Hills New Minden
Alpha Gulfport Nora
Alto Pass Harmon North Barrington
Aroma Park Hillcrest Oakland
Ava Hinckley Payson
Belle Rive Iola Prairie du Rocher
Bishop Hill Ipava Saybrook
Bradford Joy Sheldon
Brooklyn Karnak Sleepy Hollow
Brussels Keithsburg St. Libory
Buda Kempton Stonington
Butler Kirkland Stoy
Caledonia Limestone Stronghurst
Casey (Clark) Loami Sublette
Casey (Cumberland) Long Creek Ullin
Divernon Matherville Union
Edgewood Medora (Jersey) Verona
Farmersville Medora (Macoupin) Woodlawn
Flanagan Mount Erie  

Counties That have Imposed a One-percent (1%) Grocery Tax Effective July 1, 2026

Jackson Kane Wayne

Printed by authority of the State of Illinois - Electronic only, One copy