Illinois DOR Issues General Information Letter on Taxability of Food Items

The Illinois Department of Revenue (DOR) issued a general information letter on the taxability of food items for immediate consumption. The DOR clarified that food is taxed at either a higher rate of 6.25 percent or a lower rate of 1 percent, depending on specific factors. The letter explains that salads should typically be taxed at the lower rate if the retailer does not provide seating or facilities for on-premises consumption. However, customized salads made fresh upon order could be taxed at the higher rate if the proper conditions are met. [Ill. Dep’t of Revenue, ST-25-0043-GIL, 08/05/25]

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