Illinois DOR Publishes Updated Tax Rate Information on Retail Food, Medicine Sales

The Illinois Department of Revenue (DOR) published updated tax rate information for retail sales of food and medicine. The publication includes information that effective Jan. 1, 2026: 1) the 1.0 percent state sales and use tax on retail sales of groceries will be eliminated; and 2) municipalities and counties will be authorized to impose a local grocery tax rate of 1.0 percent by ordinance. [Ill. Dep’t of Revenue, Publ’n PIO-115, 11/01/25]