Illinois Sales Taxes

The state sales tax in Illinois is assessed on three categories:  1) food and prescription and non-prescription drugs, 2) Vehicles, and 3) other general merchandise. Qualifying food, drug and medical appliance purchases are taxed at a base rate of 1%. Vehicles, or items that require a title and registration are taxed at a base rate of 6.25%. Other general merchandise is taxed at 6.25% and include sales of most tangible personal property including sales of soft drinks, prepared food including food purchased at restaurants, photo processing, prewritten or “canned” computer software, prepaid telephone calling cards and other prepaid telephone arrangements, and repair parts and other items transferred or sold in conjunction with providing a service. Other local sales taxes may apply, however, depending on jurisdiction. For details, click here.

Communities may apply additional sales taxes. For sales tax rates in specific areas, click here.

2009 sales tax rates for selected Illinois communities are as follows:

Sales tax exemptions include:

• Manufacturing machinery, as well as replacement parts and computers, used to control manufacturing machinery are exempt. Purchases of manufacturing machinery receive a credit equal to 50 percent of what the taxes would have been if the manufacturing machinery was taxable making it possible for the manufacturers to use this credit to offset any other sales tax liability they incur.
• Purchase of farm machinery is exempt.
• Pollution control facilities; any system device, or appliance sold to prevent or reduce air and water pollution or pre-treat a potential pollutant are exempt.
• Food (food sales for consumption off the premises) and prescriptions are taxed at the special rate of 1%. Alcoholic beverages, soft drinks, and food prepared for immediate consumption are subject to the 6.25% tax.