The sales tax rate in Evanston, Illinois is 10.25% on general merchandise and prepared food. That’s the headline number, but it’s not the whole picture: groceries and prescription drugs are taxed at 2.25%, vehicles bought from a dealership at 8.25%, and alcohol at a combined 16.25%.1City of Evanston. Sales Taxes What you actually pay at the register depends on what you’re buying.
What Makes Up the 10.25%
The 10.25% rate is six separate taxes stacked together, each going to a different government:1City of Evanston. Sales Taxes
- State of Illinois: 5%
- City of Evanston (state-shared): 1%
- Cook County (state-shared): 0.25%
- Regional Transportation Authority: 1%
- Cook County Home Rule: 1.75%
- City of Evanston Home Rule: 1.25%
The first three are usually quoted together as a 6.25% “state rate” because Illinois collects them in one payment and redistributes the city and county shares.2Illinois Office of Comptroller. Sales Tax Evanston can impose its own 1.25% home rule tax because any Illinois municipality above 25,000 residents qualifies as a home rule unit under Article VII, Section 6 of the Illinois Constitution and can tax without special legislative approval.3Illinois General Assembly. Illinois Constitution – Article VII – Local Government
What the 10.25% Applies To
Most tangible goods carry the full 10.25%. Clothing, electronics, furniture, household supplies, and prepared food from restaurants and cafes all fall into the general merchandise category.1City of Evanston. Sales Taxes The retailer collects the whole amount at checkout and sends it to the Illinois Department of Revenue, which routes each slice to the right government.
Groceries and Prescription Drugs: 2.25%
Qualifying groceries and prescription medications are taxed at a combined 2.25%, far below the general rate.1City of Evanston. Sales Taxes This reflects a change that took effect January 1, 2026: Illinois eliminated its 1% state tax on grocery items entirely under Public Act 103-0781.4Illinois Department of Revenue. Illinois Grocery Tax Changes Effective January 1, 2026
“Groceries” here means food you take home for consumption, not food you eat on the premises. A loaf of bread at the grocery store qualifies. A sandwich eaten at a deli counter does not. The same reduced rate covers prescription and nonprescription drugs, medical appliances, insulin, and diabetic supplies.5Illinois General Assembly. 86 Illinois Administrative Code 130.311 – Drugs, Medicines, Medical Appliances, and Grooming and Hygiene Products
When the state repealed its grocery tax, it also gave municipalities and counties the option to adopt their own local grocery tax of up to 1% by ordinance.4Illinois Department of Revenue. Illinois Grocery Tax Changes Effective January 1, 2026 Whether a local grocery levy shows up on your receipt depends on what the city and county have adopted. The MyTax Illinois rate finder shows the current breakdown for any address.
Alcohol: 16.25%
Alcoholic beverages purchased in Evanston are taxed at a combined 16.25%: the standard 10.25% plus an additional 6% Liquor Consumption Tax imposed by the city.1City of Evanston. Sales Taxes The 6% applies to drinks served at bars and restaurants as well as packaged liquor sold for off-premises consumption. Businesses that sell alcohol remit this piece directly to the city’s finance department, separately from the state-collected portion.
Vehicles From a Dealership: 8.25%
Vehicles, trailers, watercraft, and other titled or registered property follow different rules. A licensed vehicle bought from an Evanston dealership is taxed at 8.25%, two full percentage points below the general rate, because the Cook County Home Rule tax and the Evanston Home Rule tax don’t apply to these transactions.1City of Evanston. Sales Taxes Dealerships report each sale on Form ST-556, whether tax is due or not.6Illinois Department of Revenue. ST-556 Sales Tax Transaction Return Instructions
Buying From a Private Party
Buying a car from another individual rather than a dealership triggers a different tax, reported on Form RUT-50. If the purchase price is under $15,000, the tax is based on the vehicle’s age. If the price is $15,000 or more, it’s calculated from the purchase price.7Illinois Department of Revenue. Use Tax Rates
A few categories have flat fees. Motorcycles and ATVs are taxed at a flat $25. Transfers between certain family members or gifts to beneficiaries are taxed at $15.7Illinois Department of Revenue. Use Tax Rates Evanston residents should check the RUT-6 reference guide to see whether a local private-party vehicle use tax also applies.
Online Orders Shipped to Evanston
Ordering from an out-of-state retailer doesn’t get you out of Evanston’s local rate. As of January 1, 2025, Illinois shifted remote sellers to destination-based Retailers’ Occupation Tax, meaning out-of-state sellers collect and remit the combined state and local tax rate for the buyer’s delivery address.8Illinois Department of Revenue. FY 2026-12, Destination-Based Retailers’ Occupation Tax Changes For a package shipped to Evanston, that’s 10.25% on most items.
A remote seller has to collect Illinois tax once it hits $100,000 or more in cumulative gross receipts from Illinois buyers over the prior 12-month lookback period. As of January 1, 2026, the old 200-transaction alternative threshold no longer applies.8Illinois Department of Revenue. FY 2026-12, Destination-Based Retailers’ Occupation Tax Changes If a smaller seller falls below the threshold and doesn’t collect, the buyer technically owes use tax directly to the state.
Who Doesn’t Pay
A handful of buyers and transactions sit outside the normal rate. Purchases by federal, state, and local government bodies are exempt. Qualifying nonprofits can also buy tax-free, but only after applying for and receiving a sales tax exemption number (an “E-number”) from the Illinois Department of Revenue; the application can take up to 90 days and isn’t retroactive.9Illinois Department of Revenue. Information for Exclusively Charitable, Religious, or Educational Organizations; Governmental Bodies; and Certain Other Tax-Exempt Organizations
Businesses buying inventory for resale don’t pay tax on those purchases if they give the seller a valid Certificate of Resale with an active Illinois account ID number.10Illinois Department of Revenue. Certificate of Resale (Sales and Related Taxes, Fees, and E911 Surcharge) Instructions Manufacturing machinery and equipment used primarily to produce goods for sale or lease also qualify for an exemption, documented on Form ST-587, along with production supplies like fuels, coolants, lubricants, hand tools, and protective gear.11Illinois Department of Revenue. Exemption Certificate (for Manufacturing, Production Agriculture, and Coal and Aggregate Mining) These exemptions are for registered organizations and businesses, not individual shoppers.