Illinois DOR Clarifies 1 Percent Tax Rate for Dietary Supplement Stick Packs

The Illinois Department of Revenue (DOR) issued a general information letter, clarifying the applicable tax rates for sales of dietary supplement powders contained in stick packs or sachets. The DOR determined that these products may qualify for the 1 percent tax rate on food, rather than the higher 6.25 percent general merchandise rate, if certain conditions are met. However, the DOR notes that the tax rate could be impacted by the nature of the selling establishment under the DOR’s regulations. [Ill. Dep’t of Revenue, ST-25-0049-GIL, 09/12/25]

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