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Grocery Tax
Under Illinois Public Act 103-0781, the State’s 1% grocery tax that collected and shared with local governments, is set to be eliminated effective January 1, 2026. The Act also grants municipalities the authority to implement their own local grocery tax in its place.
The Village of Itasca Board of Trustees voted to implement a local 1% grocery sales tax effective January 1, 2026, in alignment with other surrounding municipalities. Under current State law, the 1% grocery tax applies to two categories:
1. Grocery items purchased in-store, excluding alcoholic beverages, soft drinks, candy, cannabis-infused products, and prepared foods intended for immediate consumption.
2. Grocery items delivered directly to consumers, such as those from meal kit delivery services.
Both categories will continue to be taxed at 1% under the new local grocery tax.
Illinois currently imposes a 1% grocery tax on food for human consumption, excluding items like alcohol, candy, and soft drinks.
The state grocery tax of 1% is set to be eliminated effective January 1, 2026, per Public Act 103-0781.
Yes. Starting January 1, 2026, local governments are authorized to impose a local grocery tax of up to 1%.
No. Since the local 1% tax will replace the expiring State tax, grocery prices for consumers will remain the same.
Funds from the local grocery tax will support essential municipal services such as police and fire protection, road maintenance, snow removal, and other core operations that benefit our community.
Choosing not to implement the tax would result in a loss of revenue that currently helps fund key services. This deficit could lead to reductions in service levels or the need to explore alternative revenue sources.
The 1% local grocery tax will be collected at the point of sale, exactly like the current State tax. Retailers will remit the funds through the Illinois Department of Revenue, with no extra steps required for consumers.