Illinois Sales Tax Rates by City and County: A Table for Business Owners
Illinois Sales Tax Rates by City and County: A Table for Business Owners
If you sell products or taxable services in Illinois, you need to know the sales tax rate where your customers are located, and that rate varies significantly by city and county. Illinois combines a 6.25% state sales tax with county, municipal, and regional transportation (RTA) rates that push the total to 10.5% in Chicago and higher in some local business districts. Understanding these rates is essential for pricing, compliance, and cash flow planning.
Illinois Sales Tax Structure: How Local Rates Add Up
Illinois sales tax is not one uniform rate. Instead, it layers four components:
- State rate: 6.25% (applies statewide)
- County rate: Varies by county
- Municipal, home-rule and business district rates: Vary by city and, in some cities, by address
- Regional Transportation Authority (RTA) rate: applies in Cook, DuPage, Kane, Lake, McHenry and Will counties, and rose 0.25 point on August 1, 2026
When you combine these four layers, the total can reach 10.5% in Chicago. A business that operates in multiple Illinois cities must collect and remit the correct rate for each location, this is not optional and mistakes can result in penalties.
Major Illinois Sales Tax Rates by City and County (2026)
| City / County | Sales Tax Rate | Effective Date |
|---|---|---|
| Chicago | 10.5% | August 1, 2026 |
| Cook County (unincorporated) | 9.25% | August 1, 2026 |
| Aurora | 8.5% | August 1, 2026 |
| Naperville | 8.0% | August 1, 2026 |
| DuPage County (unincorporated) | 7.25% | August 1, 2026 |
| Kane County (unincorporated) | 7.25% | August 1, 2026 |
| Lake County (unincorporated) | 7.25% | August 1, 2026 |
| McHenry County (unincorporated) | 7.5% | August 1, 2026 |
| Will County (unincorporated) | 7.25% | August 1, 2026 |
| Rockford | 8.75% | July 1, 2020 |
| Springfield | 10.25% | July 1, 2026 |
| Peoria | 9.0% | July 1, 2017 |
The rates shown are the combined state, county, municipal, and applicable RTA rates. These are base rates from IDOR's rate files as of October 2026 with the date each took effect; some cities (Aurora, Naperville, Springfield and Peoria among them) charge higher rates at certain business-district addresses, so check your exact address. For example, while Aurora and Naperville are both in the Chicago metropolitan area, they have different municipal tax rates, resulting in different total sales tax rates.
What Changed in August 2026: The RTA Rate Increase
Effective August 1, 2026, the Regional Transportation Authority (RTA) increased its sales tax rate by 0.25% in six counties: Cook, DuPage, Kane, Lake, McHenry, and Will. This was authorized by legislation passed in December 2025 to fund public transit operations.
Chicago was most visibly affected: its Illinois sales tax rate rose from 10.25% to 10.5%. If you operate a retail location, restaurant, or service business in Chicago or other RTA-covered counties, your collected tax increased on this date.
If you use a point-of-sale (POS) system or accounting software to calculate tax, confirm that your system was updated to reflect this change. Many businesses that track tax manually must also update their collection procedures.
Illinois Grocery Tax: What Ended and What Remains
Effective January 1, 2026, Illinois eliminated its statewide 1% grocery tax. This was a significant change for food retailers, who no longer collect this tax on groceries statewide.
However, the story does not end there. Because Illinois eliminated the state grocery tax, many municipalities and counties have adopted their own 1% local grocery tax to replace lost revenue. Approximately 800 municipalities and 6 counties across Illinois now impose a local grocery tax. Cities that adopted the local rate include Peoria, Rockford, Naperville, Aurora, and Evanston. By contrast, Chicago, unincorporated Cook County, Springfield, and Champaign did not adopt a local grocery tax.
Additionally, regions covered by the Regional Transportation Authority (RTA) in the Chicago area still impose an RTA grocery tax. As of August 1, 2026, the RTA grocery tax rate is 1.5% in Cook, DuPage, Kane, Lake, McHenry, and Will counties (previously 1.25%). This means a grocery store in Chicago collects only the RTA grocery tax (1.5%) on groceries, not a municipal grocery tax on top of that.
The Metro-East Mass Transit District (MED) also keeps its local tax on groceries. If you operate a grocery store, convenience store, or sell food products, you must confirm the correct grocery tax rate for each location where you sell.
How to Find the Exact Sales Tax Rate for Your Location
Because local rates can change and vary by individual municipality, the Illinois Department of Revenue (IDOR) provides the authoritative source for current rates:
- Visit https://tax.illinois.gov/ for the current rate files and tables
- Use the IDOR sales tax rate lookup tool to search by city, county, or ZIP code
- Contact IDOR directly at 217-782-3336 if you need clarification on a specific location
Your local city or village clerk's office can also confirm whether a local grocery tax applies in your municipality. If you operate in unincorporated areas, check the MyTax Illinois Tax Rate Finder or ask the county.
What Triggers Sales Tax: Taxable vs. Exempt Items
In Illinois, the state 6.25% rate applies to most tangible personal property and certain services. However, groceries are treated differently than prepared foods. A loaf of bread purchased at a grocery store is exempt from tax (though subject to local grocery taxes where adopted). A sandwich from a deli counter is taxable at the full rate.
Illinois has no clothing exemption, so clothing is taxed at the full rate. Prescription and nonprescription medicines and drugs are taxed at the 1% low state rate rather than 6.25%, plus applicable local taxes. This is why understanding what you sell matters for tax compliance.
Multistate and Multicounty Operations
If your business operates across multiple Illinois counties or extends into neighboring states, your tax obligations become more complex. You must register for sales tax in each state where you have nexus (a sufficient business presence). Within Illinois, one IDOR registration covers all your locations. Each location may have a different rate, and remittance schedules vary.
If you sell online and ship to Illinois customers, nexus rules determine whether you must collect Illinois sales tax. Since 2018, remote sellers with sufficient sales volume must collect and remit sales tax in Illinois and other states where customers reside. IDOR lists the remote retailer threshold as $100,000 or more in Illinois gross receipts, or 200 or more separate transactions, over the preceding 12 months; check IDOR for the current thresholds.
This is an area where working with an accountant or tax professional is strongly advised. Mistakes in multistate tax compliance can result in liability assessments and penalties.
Use Tax: When Sales Tax Does Not Apply but You Still Owe
Illinois residents and businesses also owe use tax on items purchased outside Illinois (typically from out-of-state sellers) and brought into the state for use. Use tax is charged at the 6.25% state rate (1% on qualifying medicines and drugs) and applies to items that would have been taxed if purchased within Illinois.
If you buy equipment from an out-of-state vendor and the vendor did not collect Illinois tax, you owe use tax on that purchase. Many businesses and individuals overlook use tax, but IDOR can assess it if discovered during an audit.
Registering for an Illinois Sales Tax Permit
Before you sell taxable items in Illinois, you must register with the Illinois Department of Revenue and obtain a sales tax permit. You can register online through the Illinois Department of Revenue website, and the permit is issued at no cost.
Registration is free and typically processes online within one to two business days. You will receive a Certificate of Registration if you are a retailer. Keep this certificate in your records; you may need it to show that you are registered to collect tax.
Key Takeaways for Illinois Business Owners
- Illinois has a 6.25% state sales tax plus county, municipal, RTA, and special-district rates that vary by location
- Chicago's total Illinois sales tax rate is 10.5% as of August 1, 2026
- The state grocery tax ended January 1, 2026, but many municipalities and RTA regions impose local grocery taxes
- You must collect and remit the correct rate for each city and county where you operate
- Remote sellers and businesses operating across multiple states or counties should consult a tax professional
- Use tax applies to out-of-state purchases brought into Illinois for use
Disclaimer
This guide is informational content and does not constitute legal or tax advice. Sales tax rates are subject to change, and specific circumstances may affect your obligations. Local municipalities can adopt or modify tax rates, and legislative changes can occur at any time. Before making business decisions based on tax rates, consult the Illinois Department of Revenue at https://tax.illinois.gov/, contact your local tax assessor or city clerk, or work with a qualified tax professional or accountant. Tax compliance is your legal responsibility, and errors can result in penalties and interest.