Illinois to Eliminate Grocery Tax
On Aug. 5, Democratic Illinois Gov. J.B. Pritzker signed into law HB3144, the local government tax omnibus bill that eliminates the state tax on grocery items.
The Illinois General Assembly approved the legislation to eliminate the grocery tax in June when it approved Pritzker's 2025 budget plan. With the governor’s signature, the state tax is repealed across all of Illinois, although local governments have the option of imposing the tax on a local basis by ordinance. The 1% tax cut will take effect Jan. 1, 2026.
This is not the first time that the Land of Lincoln has received a tax break. In 2022, the highest inflationary year since the 1980s, the governor worked with the General Assembly to temporarily suspend the state grocery tax for the fiscal year. The 1% grocery tax was brought back on July 1, 2023, and has been in effect ever since.
“Even with inflation cooling off, every dollar counts, so I’m proud we’re doing what we can to make trips to the grocery store a little easier,” said Pritzker. “It’s one more important part of lifting the burden on Illinois families.”
According to the office of the governor, Illinois was previously one of only 11 other states to tax groceries.
[RELATED: Oklahoma Says Goodbye to Grocery Tax]
The governor has also helped residents struggling with food access. In April, Pritzker said that the Illinois Grocery Initiative would offer grants to those who build grocery stores in food deserts.
Officially called the New Stores in Food Deserts Program, the project allots funds ranging between $160,000 and $2.4 million to supermarket operators, with a 1:3 match requirement from businesses. The grants can be used to help cover the construction and renovation of new stores, along with startup costs like wages, utilities and initial food orders.
"This is a first-of-its-kind state government investment — and it will have a significant impact on underserved rural towns and urban neighborhoods dealing firsthand with the struggles of food access," said Pritzker.
