The Illinois Department of Revenue (IDOR) is raising various sales tax rates. These changes took effect on July 1st or will begin on August 1st of 2026.
Of course, they did this and didn’t tell anyone about it. I only discovered it after one of my jewelry store clients got a phone call about it from his Mother-in-law.
This is a classic Illinois move. Raise everyone’s taxes in a backroom and don’t tell anyone so that the Department can raise even more money by assessing penalties.
Tax Rate Increase Effective August 1, 2026
For businesses selling taxable goods in Cook, DuPage, Kane, Lake, McHenry, and Will counties the sales and use tax rate will increase by 0.25%.
This tax applies to several categories of sales, including
1 – General Merchandise
2 – Qualifying Groceries
3 – Qualifying Drugs and Medical Appliances
4 – Items that must be titled or registered in Illinois
5 – Medical and Adult-Use Cannabis, and
6 – Aviation Fuel.
This is added to the applicable statewide rate, as well as any county and local taxes collected by the Illinois Department of Revenue.
Local Sales Tax Rate Changes That Began July 1, 2026
Certain Illinois taxing jurisdictions have imposed or changed local sales tax rates on general merchandise sales. These changes may affect…
1 – Business District Sales Tax which is an extra local sales tax added to retail purchases in specific areas.
2 – County Public Safety Tax, a local sales tax that counties can add to fund police, fire, 911 centers, and jails.
3 – Home Rule Municipal Sales Tax, an extra local sales tax added to everyday purchases in certain Illinois towns.
4 – Metro-East Mass Transit District Sales Tax, a sales tax that varies by county.
5 – And the Non-Home Rule Municipal Sales Tax, an extra local sales tax that small towns can add to the existing sales tax.
To view the affected jurisdictions please go to the following web address…
https://tax.illinois.gov/research/publications/bulletins/fy-2026-26.html
Let me leave you with this…
I understand how confusing this may be. As such, please take the following steps to confirm the exact changes affecting your business.
1 – Please use the following web address to confirm whether or not your locations are affected.
https://mytax.illinois.gov/_/#0
Select the appropriate effective month being July 2026 or August 2026, to confirm your updated combined sales tax rate.
2 – Update your point-of-sale and accounting systems.
3 – Coordinate with your software providers to confirm that they have implemented the new Illinois rates.
4 – Review your invoices, receivables, and reporting procedures to ensure that they are working correctly.
5 – Check your multi-location reporting to confirm any necessary changes.
In my last column I wrote that the median Illinois household pays nearly $1,400 more annually in state taxes compared to levels before 2019. And that overall, the typical Illinois family loses nearly 17% of its income to state and local taxes.
Prior to this change, this was the highest overall tax burden in the United States. I guess those numbers were light.
If you have questions, please don’t hesitate to contact my office.
As always, if you’re having difficulties with your accounting and tax work, please contact me today. I’d love to help.
We’re all going to get through this. Let’s get through it together…
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, Accounting and Tax Work, Tax Planning, or Tax Representation, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
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