Groceries are not taxed by the state of Illinois as of January 1, 2026. The 1% state rate that used to apply to food for home consumption has been eliminated. But the answer to “are groceries taxed in Illinois” isn’t a flat no: hundreds of cities and counties have added their own grocery tax of up to 1%, transit district taxes still apply in parts of the state, and several items you’d grab on a grocery run — candy, soda, hot food, alcohol — are taxed at the full 6.25% general merchandise rate.1Illinois General Assembly. 35 ILCS 120/2-10 – Rate of Tax2Illinois Department of Revenue. Illinois Grocery Tax Changes Effective January 1, 2026
What Counts as a Tax-Free Grocery
To qualify for the state exemption, a food item has to be meant for human consumption and intended to be eaten somewhere other than where you bought it.3Cornell Law Institute. Illinois Administrative Code Title 86 Section 130.310 In practice, that covers most of what fills a grocery cart:
- Fresh fruits, vegetables, and herbs
- Raw meat, poultry, fish, and eggs
- Milk, cheese, yogurt, and butter
- Flour, sugar, cooking oil, and spices
- Canned vegetables, dry pasta, rice, cereal, and bread
- Frozen meals, vegetables, and fruits meant for home preparation
Vending machine food qualifies too, as long as it isn’t a soft drink, candy, or something dispensed hot.3Cornell Law Institute. Illinois Administrative Code Title 86 Section 130.310
What’s Still Taxed at the Full State Rate
Several categories of food and drink are specifically carved out of the exemption and taxed at 6.25% at the state level, plus any applicable local taxes.
Candy
Candy means sugar, honey, or other sweeteners combined with chocolate, fruit, nuts, or flavorings in bars, drops, or pieces. A product with flour in it, or one that needs refrigeration, falls outside this definition and can still qualify as a grocery.3Cornell Law Institute. Illinois Administrative Code Title 86 Section 130.310 Candy used to be taxed at the old 1% grocery rate; starting in 2026, it jumped to the general merchandise rate.1Illinois General Assembly. 35 ILCS 120/2-10 – Rate of Tax
Soft drinks
Non-alcoholic drinks with natural or artificial sweeteners count as soft drinks: sodas, sports drinks, energy drinks, and sweetened teas or coffees that don’t contain milk. Fruit or vegetable juice that is more than 50% real juice is not a soft drink and keeps the grocery exemption.3Cornell Law Institute. Illinois Administrative Code Title 86 Section 130.310
Prepared food
Food prepared for immediate eating is taxed at the full rate. In a grocery store that means hot items like rotisserie chicken, pizza, soup, and hot dogs, plus any sandwich made to your order, hot or cold. Salad bar and olive bar items you assemble yourself also count. A precooked meal sold cold and meant to be reheated at home still qualifies as a grocery.3Cornell Law Institute. Illinois Administrative Code Title 86 Section 130.310
Alcohol and cannabis-infused food
Alcoholic beverages and food infused with adult-use cannabis are excluded from the grocery exemption and taxed at the general merchandise rate, along with any excise taxes that apply to them.1Illinois General Assembly. 35 ILCS 120/2-10 – Rate of Tax
Why Your Receipt Might Still Show a Grocery Tax
The same law that killed the state’s 1% rate let municipalities and counties pass their own grocery tax of up to 1% by ordinance.4Illinois Department of Revenue. FY 2026-11, Municipal and County Grocery Occupation Tax Rate Changes, Effective January 1, 2026 As of January 1, 2026, 659 local governments across Illinois have done so.5Illinois Department of Revenue. Local Governments Imposing Local Grocery Taxes Effective January 1, 2026
These rates don’t stack. If a city and its surrounding county both pass a grocery tax, the combined rate is still capped at 1%, and counties can only impose the tax in unincorporated areas. The law also guarantees that the total grocery tax on January 1, 2026 can’t exceed what it was on December 31, 2025.4Illinois Department of Revenue. FY 2026-11, Municipal and County Grocery Occupation Tax Rate Changes, Effective January 1, 2026
Transit district taxes are a separate story and were not touched by the 2026 law. The Regional Transportation Authority in the Chicago metropolitan area and the Metro-East Mass Transit District in southern Illinois both tax grocery purchases within their boundaries.6Illinois Department of Revenue. PIO-115, Tax Rate Information for Retail Sales of Food and Medicine So even if your city skipped the local grocery ordinance, you may still see a tax line if you shop inside one of those districts.
Online and Delivered Grocery Orders
Online grocery orders follow the same rules as in-store purchases, and the tax rate is based on where the groceries are delivered — not where the store or warehouse sits.7Illinois Department of Revenue. Sales and Use Taxes If your delivery address is in a municipality with the 1% local grocery tax, that rate applies. If it isn’t, your groceries arrive free of state and local grocery tax. Anything in the order that isn’t a grocery — soda, candy, cleaning supplies — gets taxed at 6.25% plus any applicable local rates.
SNAP and WIC Purchases
Groceries paid for with SNAP or WIC benefits are completely tax-free, at both the state and local level. Federal rules bar any state that takes part in SNAP from collecting sales tax, excise tax, or any other fee on the portion of a purchase paid with SNAP benefits.8eCFR. 7 CFR Part 272 – Requirements for Participating State Agencies If you split a transaction between SNAP and cash, only the cash portion can be taxed.