Written By: Edgar Viurquez & Ashley Trabaris
The statewide IL grocery tax (1% sales tax on food items) expired January 1, 2026. However, many local municipalities implemented a local 1% grocery tax effective as of that date, meaning no real change to consumers. For municipalities that missed the January deadline, many are now adding a local grocery tax effective July 1, 2026.
What does this mean for you? The state 1% has gone away, but if your municipality passed a local 1% tax effective July 1st, there may be a change to what you are currently paying at the store. These local taxes do not require a vote, with many towns asserting that the revenues are necessary for their budget since the tax was previously established.
Some nearby municipalities/counties that have enacted their own local grocery tax to go into effect July 1, 2026 are listed below:
McHenry County:
Lake County:
Lake/Cook:
DeKalb County:
Ogle County:
Kane County – Full County
For the full list of municipalities and counties that have imposed a 1% Grocery Tax effective July 1, 2026, please see FY 2026-25, Municipal and County Grocery Occupation Tax Rate Changes, Effective July 1, 2026.
Key Item to Note: 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%).
In terms of reporting for sellers of food items in these towns, more information can be found here: FY 2026-03, Illinois Grocery Tax Changes Effective January 1, 2026
Please reach out to your Porte Brown team member with any questions.
