Tax-free shopping in Illinois isn’t a fixed annual event. The state has no permanent sales tax holiday on its books, so any back-to-school break has to be passed by the General Assembly and signed by the governor each time it happens. One is expected in August 2026. Separately, Illinois now permanently exempts groceries from its state sales tax as of January 1, 2026, and taxes most medicines and medical devices at a reduced 1% rate year-round.
When the Next Sales Tax Holiday Is Expected
The last back-to-school holiday ran for 10 days in August 2022. None was offered in 2023, 2024, or 2025.1Federation of Tax Administrators. 2025 Sales Tax Holidays Legislation has been introduced to bring the holiday back for August 2026, and the General Assembly has signaled it will happen, with a shopping window in early-to-mid August and a possibly expanded list of eligible items.
Because the final bill may not be signed until close to the holiday, the safest move is to wait for an official Informational Bulletin from the Illinois Department of Revenue. That’s where verified dates and rules are published once a bill becomes law.2Illinois Department of Revenue. Informational Bulletins
What Qualifies During the Back-to-School Holiday
The 2022 holiday is the working template until a new bill is signed. That year, the state’s 5% share of the sales tax dropped to 0% on qualifying items, so shoppers paid only the 1.25% that goes to local governments (plus any additional local rates). Eligible merchandise fell into two categories with different price rules.3Illinois.gov. Governor Pritzker Kicks Off Back To School Tax Holiday August 5 – August 14
- Clothing and footwear under $125 per item. School uniforms, coats, sneakers, rainwear, and winter gear qualified as long as the single-item retail price stayed below $125. Anything priced at $125 or above was taxed at the full 6.25% rate.
- School supplies with no price cap. Book bags, calculators, binders, notebooks, and pencils used by students in coursework had no dollar limit.
That difference catches people off guard. A $130 winter coat would have been taxed at the full rate, but a $200 graphing calculator qualified for the reduced rate because school supplies weren’t subject to the $125 threshold.
What Doesn’t Qualify
The holiday is narrower than most shoppers assume. The 2022 legislation excluded several categories that look like they should count:
- Clothing accessories: jewelry, handbags, wallets, watches, sunglasses, and umbrellas.
- Protective and sports equipment: helmets, cleated athletic shoes, ski boots, and safety goggles, even when bought for school sports.
- Art supplies and instructional materials: paint, brushes, sketch pads, textbooks, and reference books.
- Electronics: computers, tablets, cell phones, cameras, and data storage devices were not eligible in 2022.
Early reports suggest the 2026 bill could add computers and related devices for the first time. Until it’s signed, treat 2022’s exclusions as the baseline and check the Department of Revenue’s bulletin before a large purchase.
Why Your Receipt Still Shows Tax During a Holiday
“Tax-free” is a misnomer in Illinois. The holiday suspends only the state’s 5% share, leaving the 1.25% local portion in place. On top of that, most Illinois shoppers pay additional local sales taxes imposed by their city, county, or transit authority, and those aren’t affected by the state holiday at all. In a jurisdiction with a combined local rate of about 4%, a shopper would still pay roughly 5.25% on a qualifying item during the holiday instead of the usual 10.25%. You can look up your exact combined rate through the Illinois Department of Revenue’s Tax Rate Finder.4Illinois Department of Revenue. Tax Rate Database
Groceries Are Now State Tax-Free
Effective January 1, 2026, Illinois eliminated its 1% state sales tax on groceries. This is permanent, not a holiday. Qualifying groceries include food for human consumption bought to eat at home. Alcohol, candy, soft drinks, food infused with cannabis, and meals prepared for immediate consumption don’t qualify.5Illinois Department of Revenue. Illinois Grocery Tax Changes Effective January 1, 2026
There’s a catch. The same law authorized municipalities and counties to impose their own 1% local grocery tax by ordinance. If your city or county adopted that tax, the rate on your grocery receipt stays at 1%; it just goes to local government instead of the state. Jurisdictions inside the Regional Transportation Authority and Metro-East Transit District also retain existing local grocery taxes.6Illinois Department of Revenue. FY 2026-11, Municipal and County Grocery Occupation Tax Rate Changes Check your local municipality’s site or your grocery receipt to see whether your area adopted the tax.
Medicine, Medical Devices, and Hygiene Products
Prescription and nonprescription medicines, medical appliances, and certain diabetes supplies are taxed at 1% year-round under the Retailers’ Occupation Tax Act. That covers items like insulin, blood sugar testing materials, syringes, prosthetic devices, and FDA Class III medical devices used for cancer treatment. Vehicle modifications that make a car usable by a person with a disability also qualify for the 1% rate.7Cornell Law Institute. Illinois Code tit 86, 140.126 – Taxation of Food, Drugs and Medical Appliances The 2026 grocery change didn’t touch this 1% rate.
Feminine hygiene products, including tampons, menstrual pads, and menstrual cups, are fully exempt from state sales tax. That change took effect in 2017.8Illinois Department of Revenue. Illinois Sales and Use Tax Matrix
Online Orders and Shipping Charges
If a future holiday follows the 2022 pattern, online purchases shipped to Illinois addresses should qualify for the reduced rate as long as the transaction falls inside the holiday window. Illinois already requires retailers to collect sales tax on online orders to Illinois addresses, so the holiday rate would apply the same way the normal rate does.
One detail matters for items priced near the $125 clothing threshold. Shipping and handling charges are taxable in Illinois when the seller doesn’t separately list them, or when the seller doesn’t offer an alternative like in-store pickup. If shipping is separately stated and you have the option to pick up instead, those charges aren’t taxed.9Illinois Department of Revenue. Are Shipping and Handling Charges Taxable Before assuming a borderline item qualifies, check whether the retailer’s listed price includes shipping.