CHICAGO —Today Governor JB Pritzker signed into law HB3144, the local government tax omnibus bill that eliminates the state tax on grocery items. The 1% state tax is repealed across all of Illinois, although local governments have the option of imposing the tax on a local basis by ordinance.
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“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 Governor Pritzker. “It’s one more important part of lifting the burden on Illinois families. Establishing a child tax credit, eliminating medical debt, lowering the cost of healthcare, making college more affordable, bringing quality childcare closer to home so moms and dads can go to work — these are not esoteric policy proposals but actually do lift burdens everyday Illinoisans face.”
Governor Pritzker has made tax relief for working families a major priority for his administration. In 2022, the highest inflationary year since the 1980’s, the Governor worked with the General Assembly to suspend the state grocery tax for the fiscal year. The Governor also supported property tax rebates and direct payments for Illinois filers.
The local business omnibus bill also legislates several other municipal tax code rules and regulations, including prepaid wireless surcharges and a Hotel Operators’ Occupation Tax. The 1% tax applies to grocery items intended to be consumed off-premises. Illinois was previously one of only 11 other states to tax groceries. The tax cut will take effect January 1st, 2026.
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