The Decatur, IL sales tax rate is 9.25% on general merchandise. That combined rate includes 6.25% state tax, 1.50% city tax, and 1.50% Macon County tax, and it’s what you’ll see added at the register on most everyday purchases.1City of Decatur, Illinois. Sales Tax What you actually pay depends on what you’re buying: groceries, medicine, restaurant meals, and vehicles each follow different rules.
Rates by Purchase Type
- General merchandise: 9.25%
- Groceries taken home: 1%
- Prescription and non-prescription drugs, qualifying medical appliances: 1%
- Restaurant meals, takeout, and alcoholic drinks: 11.25%
- Titled vehicles, boats, trailers, manufactured homes: 6.25%
The city’s 1.50% and the county’s 1.50% only apply to general merchandise. They don’t apply to groceries, drugs, medical appliances, or anything that requires a state title or registration.2Illinois Department of Revenue. Home Rule and Non-Home Rule Sales Taxes That’s why the effective rate drops so sharply on those categories.
Groceries After the 2026 Change
Illinois eliminated its 1% state sales tax on groceries effective January 1, 2026, and gave cities and counties the option to impose a local 1% grocery tax in its place.3Illinois Department of Revenue. How Do I Know What Rate of Sales Tax to Charge on Food Decatur adopted the local version, so shoppers still pay 1% on qualifying groceries. The rate at the register didn’t change; the money now flows to the city instead of the state.1City of Decatur, Illinois. Sales Tax
Qualifying groceries means food for human consumption that you take home. Bread, milk, produce, and packaged foods all qualify. Soft drinks, candy, and prepared food meant for immediate consumption do not, and get taxed at the full 9.25% general merchandise rate.
Prescription Drugs and Medical Appliances
Prescription and non-prescription drugs, along with qualifying medical appliances, are taxed at 1% statewide.4Illinois Department of Revenue. What Is Significant About Retail Sales of Qualifying Drugs and Medical Appliances No local taxes stack on top, so the 1% is the whole rate at any Decatur pharmacy or medical supply store.2Illinois Department of Revenue. Home Rule and Non-Home Rule Sales Taxes
Insulin, blood pressure monitors, and prosthetic devices are typical qualifying items. The category is defined by the Illinois Department of Revenue, and not everything sold in a drugstore’s medical aisle qualifies. A heating pad, for example, isn’t automatically included just because of where it’s shelved.
Eating Out: The 11.25% Rate
A restaurant meal, a takeout order, or a drink at a bar in Decatur is taxed at 11.25%. That’s the 9.25% sales tax plus a 2% city food and beverage tax that applies to prepared food and to alcoholic beverages.5City of Decatur, Illinois. Food and Beverage Tax
The 2% applies whenever the seller has heated, mixed, or otherwise prepared the food for immediate eating. A deli-counter sandwich, a delivered pizza, and a cocktail all count. Raw ingredients you’re taking home to cook do not. Businesses collect this tax separately from state sales tax and remit it to the city by the 20th of the following month.5City of Decatur, Illinois. Food and Beverage Tax
Cars, Boats, and Trailers
Titled purchases follow their own rule. Because vehicles, boats, trailers, and manufactured homes have to be titled or registered with a state agency, they’re excluded from Decatur’s city and county sales taxes. The rate is 6.25%, the state portion only.1City of Decatur, Illinois. Sales Tax2Illinois Department of Revenue. Home Rule and Non-Home Rule Sales Taxes
One point people miss: the rate follows the buyer’s address, not the dealer’s. If you live outside Decatur and buy from a Decatur dealership, you pay your home municipality’s rate. If you live in Decatur and buy elsewhere, the Decatur rate applies.
Private-party used vehicle purchases work differently. You file the transaction directly with the Illinois Department of Revenue on Form RUT-50, and you may owe a local private-party vehicle use tax depending on where you live.6Illinois Department of Revenue. Private Party Vehicle Use Tax
Online Purchases
Most large online retailers already collect Illinois sales tax at checkout, and they charge the destination rate, so Decatur addresses should see the correct 9.25% (or applicable reduced rate) applied automatically. As of January 1, 2026, any remote seller with $100,000 or more in cumulative gross receipts from Illinois buyers has to register and collect state and local tax. The old 200-transaction threshold was dropped.7Illinois Department of Revenue. FY 2026-12, Destination-Based Retailers Occupation Tax Changes
When an out-of-state seller doesn’t collect Illinois tax, you owe use tax on the purchase: 6.25% on general merchandise, 1% on food, drugs, and medical appliances.8Illinois Department of Revenue. Use Tax Rates Tax paid to another state on the same item is credited, so you only owe the difference. Use tax gets reported on your Illinois income tax return.
Checking a Rate Before You Buy
Rates can change on January 1 or July 1 each year. The MyTax Illinois Tax Rate Finder on the Department of Revenue website lets you look up the current combined rate for any Illinois address.9Illinois Department of Revenue. Tax Rate Database Worth a quick check before a large purchase.