Illinois Grocery Tax To Be Suspended For A Year

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Illinois residents can say goodbye to grocery tax for a year starting July 1.

The Public Act (P.A) 102-0700 will suspend the state's one percent low sales rate and use tax on retail sales of groceries typically taxed at this rate from July 1, 2022, through June 30, 2023. This public act information was released in April when Gov. J.B. Pritzker and other democratic lawmakers revealed the Illinois budget deal.

So, residents' bills are expected to stay the exact total as long as all groceries are eligible. Below are some answers to questions you might have.

How long will this go on?

July 1, 2022- June 30, 2023

Is this for all Illinois Residents? Is there a specific income requirement?

Yes. This tax suspension is for all Illinois residents, and there are no income requirements.

What groceries are eligible?

Food that is to be consumed off of premises where it is sold. For example, frozen dinners, vegetables, bread, meat & seafood, dairy items, bakery items, "cooked-cold or prepared cold foods" (food that is cooked or prepared by the retailer that is refrigerated: salads in containers, wrapped sandwiches in containers, etc.)

What groceries are ineligible?

Alcoholic beverages, food consisting of or infused with adult-use cannabis, soft drinks, candy, and food that has been prepared for immediate consumption (ready-to-eat foods from self-service hot and salad bars). For example, food from a self-service Marianos hot bar or salad bar is ineligible.

Will retailers notify customers of the tax suspension?

Yes. Retailers must put the following message on receipts, invoices, or a sign visible enough for customers to see.

"From July 1, 2022, through June 30, 2023, the State of Illinois sales tax on groceries is 0%."

For more information, visit https://www.illinois.gov/