The Public Act (P.A) 102-0700 will suspend the state’s 1% low sales rate and use tax on retail sales of groceries typically taxed at this rate. The suspension will run through June 30, 2023. This public act information became available in April when Gov. J.B. Pritzker and other lawmakers made the reveal of the Illinois budget deal.
So, expect residents’ bills to stay the exact total as long as all groceries are eligible.
Is this for all Illinois residents? Is there a specific income requirement?
Yes. This tax suspension is for all Illinois residents. There are no income requirements.
What groceries are eligible?
Food that is to be eaten off premises where it is sold. For example, frozen dinners, vegetables, bread, meat, and seafood. It also includes dairy items, bakery items, and “cooked-cold or prepared cold foods”.
What groceries are ineligible?
Alcoholic beverages, food consisting/infused with cannabis, soft drinks, candy, and food that has been prepared for immediate consumption. This includes ready-to-eat foods from self-service hot and salad bars.
Will Illinois retailers notify customers of the tax suspension?
Yes. Retailers will post the following message on receipts, invoices, or a sign visible enough for customers to see. “From July 1, 2022, through June 30, 2023, the State of Illinois sales tax on groceries is 0%.”
