The sales tax rate in Mundelein, IL is 8.25% on general merchandise, a rate that has been in effect since July 1, 2024.1Village of Mundelein. Taxes That’s what you’ll see added to most tangible goods at the register, from clothing to electronics. Groceries, medicine, and vehicles each follow their own rules, and the combined rate could climb again later in 2026.
Where the 8.25% Comes From
Three taxing bodies stack their rates to produce the number on your receipt:
- Illinois state tax of 6.25%, the base retailers’ occupation tax applied to general merchandise statewide.2Illinois Department of Revenue. What Are the Retailers Occupation and Use Tax Rates in Illinois
- Regional Transportation Authority (RTA) tax of 0.75%, which Lake County pays as part of the six-county RTA region. The money funds public transit across northeastern Illinois.3Illinois Department of Revenue. Mass Transit District Sales Tax
- Mundelein home rule tax of 1.25%, imposed by the village under its home rule authority. Mundelein raised this piece from 1.00% to 1.25% on July 1, 2024, which is what moved the combined rate from 8.00% to 8.25%.1Village of Mundelein. Taxes
The home rule portion comes from the Illinois Municipal Code, which lets qualifying municipalities add a local sales tax in quarter-percent increments on tangible personal property sold at retail. It cannot be applied to items that must be titled or registered with a state agency.4Illinois General Assembly. Illinois Compiled Statutes 65 ILCS 5 – Illinois Municipal Code
Groceries, Medicine, Prepared Food, and Vehicles
Not every purchase in Mundelein is taxed at 8.25%. The category of goods you’re buying changes the rate, sometimes significantly.
Groceries
Qualifying groceries, meaning food meant for off-premises consumption, are taxed at 1.75% in Mundelein as of July 1, 2026. The breakdown shifted twice in a single year. On January 1, 2026, Illinois eliminated its statewide 1% grocery tax, dropping the rate on qualifying food to just the 0.75% RTA portion.5Illinois Department of Revenue. Grocery Tax Repeal – Key Information for Local Governments The same law that repealed the state tax authorized municipalities to pass their own 1% local grocery tax, and Mundelein did so effective July 1, 2026.6Illinois Department of Revenue. FY 2026-25, Municipal and County Grocery Occupation Tax Rate For shoppers, the receipt looks much like it did before; the money now flows to the village rather than the state.
Qualifying groceries exclude alcohol, soft drinks, candy, and prepared meals. Those are taxed at the general merchandise rate.
Prescription and nonprescription drugs
Drugs, medical appliances, and insulin supplies carry a reduced state rate of 1% instead of 6.25%.2Illinois Department of Revenue. What Are the Retailers Occupation and Use Tax Rates in Illinois Add the 0.75% RTA tax, and these items are taxed at 1.75% total in Mundelein.3Illinois Department of Revenue. Mass Transit District Sales Tax
Prepared food
Restaurant meals, hot deli items, and food from establishments with eat-in seating do not qualify for the reduced grocery rate. They are taxed at the full 8.25% general merchandise rate.7Illinois Department of Revenue. Tax Rate Information for Retail Sales of Food and Medicine (PIO-115) A store selling both groceries and prepared food must keep records that separate the two categories; without them, the Illinois Department of Revenue treats all food sales at the higher rate.
Vehicles and other titled property
Vehicles, trailers, watercraft, and other items titled or registered with a state agency are taxed at the 6.25% state rate, and Mundelein’s home rule tax does not apply.4Illinois General Assembly. Illinois Compiled Statutes 65 ILCS 5 – Illinois Municipal Code These transactions use separate tax forms and are typically handled at the point of titling rather than at the retailer.
Buying Online or From Out of State
If you buy something from an out-of-state seller who doesn’t collect Illinois tax, you still owe tax at the same rate you would have paid locally. For individuals, Illinois calls this use tax, and you can report it on Form ST-44 or, if your total use tax for the year is $600 or less, on your IL-1040 income tax return.8Illinois Department of Revenue. What Is Use Tax
Most larger online retailers already collect Illinois tax at checkout. As of January 1, 2025, remote retailers who ship into Illinois collect destination-based retailers’ occupation tax, meaning the combined rate is calculated based on where the buyer is located.8Illinois Department of Revenue. What Is Use Tax A delivery to a Mundelein address triggers the 8.25% rate on general merchandise, the same as an in-store purchase.
A Possible Rate Increase Later in 2026
Mundelein’s combined rate may climb before the end of 2026. The Northeastern Illinois Transit Authority (NITA) Act, passed in late 2025, authorized an additional 0.25% RTA sales tax across the six-county RTA region, including Lake County. The current RTA board must vote on the increase within sixty days of June 1, 2026, with the new rate expected to take effect around August 2026.9Regional Transportation Authority. Moving the System
If approved, the RTA portion in Mundelein would rise from 0.75% to 1.00%, bringing general merchandise to 8.50% and lifting the rate on qualifying groceries and drugs by the same amount, since the RTA tax applies on top of their lower base rates.
Collecting Mundelein Sales Tax as a Business
If you sell tangible personal property at retail in Mundelein, you have to register with the Illinois Department of Revenue before collecting any tax. Registration is done through MyTax Illinois at no charge, and the state issues you an Illinois Account ID number along with a Certificate of Registration that must be displayed at your place of business.10Illinois Department of Revenue. Business Registration
Collected tax is reported on Form ST-1, the Sales and Use Tax and E911 Surcharge Return, with a 2026-specific version available for periods beginning January 2026.11Illinois Department of Revenue. Sales and Use Tax Forms The form separates sales into general merchandise, qualifying food, and drugs. The Department of Revenue assigns each business a filing frequency (monthly, quarterly, or annual) based on tax liability, and returns are due by the 20th of the month following the reporting period on any schedule.
The retailers’ discount for on-time filing
If you submit your ST-1 and pay the full tax due by the deadline, you can keep a small portion of what you collected as a retailers’ discount. For returns due on or after January 1, 2025, the discount is capped at $1,000 per month.12Illinois Department of Revenue. As a Retailer, Am I Allowed a Discount From the Sales Tax I Report On One day late and the discount is forfeited.
Late filing and late payment penalties
The late-filing penalty starts at the lesser of $250 or 2% of the tax due. Late payments are penalized separately: 2% if 1 to 30 days late, 10% after 30 days, 15% if the unpaid amount is discovered during an audit, and 20% if it isn’t paid within 30 days after the audit concludes.13Illinois Department of Revenue. Pub-103, Penalties and Interest for Illinois Taxes Interest accrues daily on top of the penalties at the federal underpayment rate.
Buying inventory tax-free
Businesses purchasing inventory for resale don’t pay sales tax on those purchases; the tax is collected later when the goods are sold to the end consumer. You give your supplier a Certificate of Resale, either on Form CRT-61 or an equivalent written statement, which includes your Illinois Account ID number. Sellers are expected to verify that the buyer’s account number is valid through the “Verify a Registered Business” tool on MyTax Illinois.14Illinois Department of Revenue. CRT-61 Certificate of Resale