Skokie Sales Tax: 10.25% Rate, Cars, and Prepared Food

The sales tax in Skokie, Illinois is 10.25% on general merchandise, a combined rate that layers state, county, regional transit, and village taxes into one charge at the register.1Skokie, IL. Business Taxes Groceries, prescription and over-the-counter drugs, and qualifying medical appliances are taxed at lower rates. Motor vehicles carry their own rate of 7.25%.2Village of Skokie. Frequently Asked Questions – Finance And if you’re eating out, the village adds a 2% prepared food and beverage tax on top of the general rate, so a restaurant check is taxed at 12.25%.

What Makes Up the 10.25% Rate

Four jurisdictions each take a share of every general merchandise sale in Skokie:

Retailers collect the full amount as a single line on the receipt. The state later distributes each jurisdiction’s share. Skokie uses home rule power under the Illinois Constitution to set its local rate without needing separate state legislation for each change.

Groceries, Drugs, and Medical Appliances

Not every purchase in Skokie is taxed at 10.25%. Qualifying groceries, prescription and over-the-counter drugs, and medical appliances that directly replace a body part — such as prosthetics, corrective eyeglasses, and dentures — all fall under reduced rates.5Illinois Department of Revenue. What Is Significant About Retail Sales of Qualifying Drugs and Medical Appliances The grocery category covers food meant to be eaten at home. It does not cover hot prepared meals, candy, soft drinks, or alcohol, which are taxed at the full general merchandise rate.

The 2026 Grocery Tax Change

On January 1, 2026, Illinois eliminated its statewide 1% grocery tax.6Illinois Department of Revenue. FY 2026-11, Municipal and County Grocery Occupation Tax Rate Before that date, the state charged 1% on qualifying food, with local governments adding their own portions. The state share is now zero on groceries, though municipalities and counties can still impose a local grocery tax by ordinance.7Illinois Department of Revenue. Grocery Tax Repeal – Key Information for Local Governments

Skokie’s own business tax page lists the local rate on qualifying food and drugs at 2.25%.1Skokie, IL. Business Taxes That figure includes Cook County, the RTA (which charges 1.25% on qualifying food, drugs, and medical appliances in Cook County), and the village’s home rule share.4Illinois Department of Revenue. Mass Transit District Sales Tax With the state portion gone, the total you pay on qualifying groceries in Skokie is lower than it was through 2025.

Drugs and Medical Appliances

The 2026 change touched only groceries. The state still charges 1% on qualifying drugs and medical appliances.3Illinois Department of Revenue. What Are the Retailers’ Occupation and Use Tax Rates in Illinois Classification at the register matters: a bottle of aspirin qualifies for the reduced drug rate, but a bottle of shampoo on the next shelf does not. The distinction turns on whether the product claims medicinal value or directly replaces a malfunctioning body part.

Buying a Car in Skokie

A vehicle purchase in Skokie is taxed at 7.25%, noticeably less than the 10.25% on general merchandise.2Village of Skokie. Frequently Asked Questions – Finance Illinois treats vehicles and other titled or registered items under a separate rate structure, because some local tax components that apply to general merchandise do not attach to vehicle sales the same way.

Private-party sales follow different rules than dealer sales. Tax on a private sale may be based on the vehicle’s fair market value rather than the price you paid, and the schedule varies depending on whether the price is above or below $15,000.8Illinois Department of Revenue. Use Tax Rates Flat fees apply to certain transfers, including gifts between family members. For a private purchase, the Illinois Department of Revenue’s MyTax Illinois Tax Rate Finder will show the exact figure for your situation.

Restaurants, Bars, and Prepared Food

Eating out in Skokie costs more than the menu price suggests. The village charges a 2% Prepared Food and Beverage Tax on food and drinks sold for immediate consumption, stacked on top of the 10.25% general rate.1Skokie, IL. Business Taxes The effective tax on a restaurant check comes to 12.25%, before tip.

The 2% applies to any food prepared for immediate consumption, whether you eat in or take it to go. Restaurants, bakeries, cafeterias, food trucks, delis, coffee shops, bars, and hotel dining rooms are all covered.9Municode Library. Skokie Code of Ordinances Chapter 98 – Article XI Municipal Prepared Food and Beverage Tax Items sold in the manufacturer’s sealed container, such as a can of soda off a grocery shelf, do not trigger the tax. The dividing line is whether the establishment prepared the food for you to eat right away. Skokie’s code places the tax on the purchaser, and the business collects and remits it; the revenue stays within the village.

If You’re Running a Business

Retailers in Skokie report and pay the full combined tax through a single return, Form ST-1, filed with the Illinois Department of Revenue.10Illinois Department of Revenue. Sales and Use Tax Forms One filing covers all four layers: state, county, RTA, and village. The state receives the money and distributes each share. Returns are filed electronically through MyTax Illinois, which populates the correct rates based on your registered location. Late payments carry tiered penalties that jump sharply at the 30-day mark, so a payment three weeks late costs far less than one five weeks late.11Illinois Department of Revenue. Pub-103, Penalties and Interest for Illinois Taxes