The Gurnee sales tax rate is 8.50% on general merchandise as of January 1, 2026. The combined rate rose half a point at the start of the year after the Village Board approved an increase to its home rule sales tax. That 8.50% applies to most tangible goods sold in the village, but groceries, drugs, vehicles, prepared food, and hotel stays each follow their own rules that can push what you actually pay higher or lower.1Illinois Department of Revenue. FY 2026-10-A, Summary of Sales Tax Rate Change, Effective January 1, 2026
How the 8.50% Breaks Down
The rate on your receipt is layered. The State of Illinois takes 6.25%, the baseline charged everywhere in the state.2Illinois Department of Revenue. Sales and Use Taxes The Regional Transportation Authority adds 0.75% to fund transit across northeastern Illinois, including Lake County. The Village of Gurnee’s own share is 1.50%, up from 1.00% before January 1, 2026.1Illinois Department of Revenue. FY 2026-10-A, Summary of Sales Tax Rate Change, Effective January 1, 2026
Gurnee’s status as a home rule municipality is what lets the village set its local rate. If you want to verify the exact combined rate for a specific address in the village, the Illinois Department of Revenue runs a Tax Rate Finder at mytax.illinois.gov.3Illinois Department of Revenue. Tax Rate Database
Groceries and Drugs
Groceries changed significantly in 2026. Effective January 1, Illinois eliminated the statewide 1% sales tax on qualifying groceries entirely.4Illinois Department of Revenue. FY 2026-11, Municipal and County Grocery Occupation Tax Rate Changes Qualifying groceries are food meant to be eaten off the premises and not prepared for immediate consumption: raw produce, canned goods, boxed cereal, and the like. The new law lets municipalities and counties impose their own local grocery tax of up to 1% by ordinance, so what you actually pay on groceries in Gurnee depends on whether the village has adopted one. Check a recent receipt or contact the village to confirm the current charge.
Prescription and nonprescription drugs, medical appliances, insulin, and diabetic supplies are taxed at a reduced state rate of 1% rather than 6.25%.5Illinois General Assembly. 86 Illinois Administrative Code 130.311 – Drugs, Medicines, Medical Appliances, and Grooming and Hygiene Products Locally imposed taxes can apply on top of that 1%.6Illinois Department of Revenue. What Is Significant About Retail Sales of Qualifying Drugs and Medical Appliances
Restaurant Meals and Prepared Food
Food prepared for immediate consumption does not get a reduced rate. Hot meals, restaurant orders, deli items, and anything sold where seating is provided are taxed at the full general merchandise rate.7Illinois Department of Revenue. Food and Drug Retailers Occupation Tax Rate Information (PIO-115) If a retailer offers seating, all food sold there is presumed to be prepared food, even items that might otherwise qualify for a lower rate.
Gurnee also imposes a separate 1% food and beverage tax on prepared foods, drinks, and alcoholic liquor sold in the village.8Village of Gurnee. Food and Beverage FAQ A restaurant meal in Gurnee therefore carries an effective 9.50% combined tax: the 8.50% sales tax plus the 1% food and beverage tax.
Vehicle Purchases
Vehicles, trailers, watercraft, and other items requiring a title or state registration follow different rules than ordinary retail goods. When you buy from a registered Illinois dealer, the sale is taxed under the Retailers’ Occupation Tax Act, and the dealer reports it on Form ST-556 within 20 days of delivery.2Illinois Department of Revenue. Sales and Use Taxes The combined rate depends on where the sale takes place, so a purchase at a Gurnee dealership uses the local rates there.
Private party purchases are different. If you buy a car from another individual, you owe Use Tax when you title the vehicle with the state. The amount depends on the purchase price or fair market value, and you calculate it using the Department of Revenue’s rate chart on Form RUT-50.9Illinois Department of Revenue. Private Party Vehicle Use Tax
Online Orders Shipped to Gurnee
What you owe on an online order depends on who sold it. Remote sellers and marketplace platforms with $100,000 or more in annual Illinois sales must collect and remit tax based on the delivery address. The previous alternative threshold of 200 transactions was eliminated on January 1, 2026, leaving $100,000 in gross receipts as the only trigger.10Illinois Department of Revenue. FY 2026-12, Destination-Based Retailers Occupation Tax Changes Because the tax follows the delivery location, an order shipped to Gurnee should reflect the same 8.50% rate you’d pay in a local store.
If a seller doesn’t collect Illinois tax, you owe Use Tax yourself: 6.25% on general merchandise, 1% on qualifying drugs and medical appliances.11Illinois Department of Revenue. Use Tax Rates You can report use tax on your Illinois individual income tax return (Form IL-1040) if the yearly total is $600 or less. Above $600, file Form ST-44 by the last day of the month following the purchase.12Illinois Department of Revenue. Use Tax for Individuals – Questions and Answers Illinois credits any sales tax already paid to another state, but if that state’s rate was lower, you owe the difference.
Hotel Stays and Amusement Charges
Visitors to Gurnee run into several village-level taxes on lodging and entertainment that sit on top of state taxes:
- Hotel and motel tax of 6% on room charges, remitted directly to the village.
- An additional 2% resort hotel tax on qualifying resort properties.
- Amusement tax of 4% on receipts from entertainment venues and recreational activities.
These are village-imposed charges in addition to any state taxes that apply to lodging or entertainment.13Village of Gurnee. Business Taxes For a village that draws visitors to Six Flags Great America and Gurnee Mills, the amusement and hotel taxes generate meaningful local revenue. If you’re booking a Gurnee hotel room, expect the total tax to run noticeably higher than the retail sales rate once state and local lodging taxes combine.