Pritzker signs bill to eliminate Illinois grocery tax

Illinois Governor JB Pritzker signed a local government tax bill on Monday that eliminates the state tax on grocery items.

As of January 1, 2026, the one percent state tax is repealed across the entire state. However, local governments have the option of imposing the tax.

The one percent tax applies to grocery items intended to be consumed off-premises.

Illinois was previously one of only 11 other states to tax groceries. 

The bill also legislates other municipal tax code rules and regulations, including prepaid wireless surcharges and a hotel operators’ occupation tax.