Effective January 1, 2026, Illinois will exempt food for human consumption through a repeal its 1% sales tax. This exemption will not apply to alcoholic beverages, cannabis-infused products, soft drinks, candy, or prepared foods meant for immediate consumption. Coinciding with the repeal, municipalities will have the option to impose their own 1% grocery tax, replacing the state tax if they choose to adopt it.
For more information, see Public Act 103-0781.
