The sales tax rate in Downers Grove is 8.50% on general merchandise as of January 1, 2026. That figure reflects two changes that took effect the same day: the Village raised its home rule sales tax, and a new regional transit surcharge was added across the Chicago area. Groceries, prescription drugs, and vehicles are taxed at lower rates, and the rules for groceries in particular changed in 2026 in a way that affects what you pay at the register.
What Makes Up the 8.50%
The combined rate stacks three layers of government:
- Illinois state tax: 6.25%
- Regional Transportation Authority: 0.75%
- Village of Downers Grove home rule tax: 1.50%
Two of those pieces are new for 2026. The Village increased its home rule retailers’ occupation tax from 1.00% to 1.50% effective January 1, 2026.1Illinois Department of Revenue. Sales Tax Rate Change Summary, Effective January 1, 2026 At the same time, the RTA rate in DuPage County rose from 0.50% to 0.75% under the NITA Act, which authorized an additional 0.25% across the six-county RTA region.2Regional Transportation Authority. Keeping Riders Moving Home rule authority under the Illinois Municipal Code allows cities and villages to impose this tax in quarter-percent increments on tangible personal property sold at retail within their boundaries.3Illinois General Assembly. Illinois Code 65 ILCS 5 – Illinois Municipal Code
The 8.50% applies to clothing, electronics, household goods, and most other general retail purchases within Village limits.4Village of Downers Grove. Ordinance 2025-10893 – Home Rule Sales Tax The state’s 6.25% portion is split internally among the state, the municipality, and DuPage County, but shoppers see it as a single line.5DuPage County. Sales Taxes
What You Pay on Groceries
Grocery taxation changed significantly in 2026. Illinois eliminated its 1% state sales tax on groceries effective January 1, 2026.6Illinois Department of Revenue. Municipal and County Grocery Occupation Tax Rate Changes Before that date, groceries carried a reduced 1% state rate; now the state portion is zero.
The same law let municipalities and counties impose their own 1% local grocery tax by ordinance. Downers Grove’s home rule tax has always excluded groceries, and the Village ordinance specifically states that the home rule tax does not apply to food for human consumption purchased for off-premises use.4Village of Downers Grove. Ordinance 2025-10893 – Home Rule Sales Tax The RTA tax on groceries still applies regardless of the state change.6Illinois Department of Revenue. Municipal and County Grocery Occupation Tax Rate Changes
“Groceries” under Illinois law means food meant to be eaten off-premises. The category excludes alcoholic beverages, cannabis-infused food, soft drinks, candy, and food prepared for immediate consumption.7Illinois Department of Revenue. Tax Rate Information for Retail Sales of Food and Medicine (PIO-115) The immediate-consumption line is where people get tripped up. A sandwich pulled from a deli case is a grocery. A sandwich made to order is not — it is taxed at the full general merchandise rate. Hot foods are always treated as prepared for immediate consumption. Bakery items like doughnuts, bagels, and rolls sold for takeaway qualify as groceries even when the retailer bakes them on site.
If a store has seating or an eat-in area, all food sales are presumed to be at the higher rate unless the retailer physically separates the dining area from the grocery section and keeps separate accounting for each type of sale.
Prescription Drugs and Medical Items
Prescription and nonprescription medicines, medical appliances, insulin, and diabetic testing supplies carry the state’s reduced 1% rate rather than the 6.25% general merchandise rate.8Cornell Law Institute. Illinois Code 86 – Taxation of Food, Drugs and Medical Appliances The 2026 grocery change did not touch this category. The Village’s home rule tax also excludes these medical items, the same way it excludes groceries.4Village of Downers Grove. Ordinance 2025-10893 – Home Rule Sales Tax The practical result is a substantially lower tax burden on prescriptions and qualifying medical devices than on ordinary retail goods.
What You Pay on Vehicles
Cars, trucks, trailers, watercraft, and other property that must be titled or registered with an Illinois state agency follow separate rules. The home rule retailers’ occupation tax explicitly does not apply to titled or registered items.9Cornell Law Institute. Illinois Administrative Code Title 86, 270.101 – Nature of the Home Rule Retailers Occupation Tax Downers Grove’s 1.50% home rule portion never attaches to a vehicle purchase, regardless of whether the dealership sits inside Village limits.
The local tax rate on a vehicle is based on where the vehicle will be titled, which is effectively the buyer’s home address rather than the dealership’s location.10Illinois Department of Revenue. Sales and Use Taxes If you live in Downers Grove and buy a car from a dealership in another town, the local tax reflects Downers Grove’s rates, minus the home rule portion that cannot apply. Your total on a vehicle will come in below the 8.50% general rate.
Confirming the Rate for a Specific Address
Sales tax rates in Downers Grove can shift whenever the Village, DuPage County, or the state legislature adjusts its portion. The Illinois Department of Revenue maintains a Tax Rate Finder through MyTax Illinois that returns the exact combined rate for any Illinois address.11Illinois Department of Revenue. Home Rule and Non-Home Rule Sales Taxes It accounts for every overlapping tax district and reflects changes as they take effect. In a place like Downers Grove, where three separate pieces of the rate stack moved on the same date, a figure you remembered from a year ago is already out of date.