Illinois to eliminate 1% state tax on groceries, city officials and consumers say

MILAN, Ill. (KWQC) – Starting January 1, 2026, Illinois will eliminate its 1% tax on grocery products. It’s a topic that’s generating a lot of debate among city officials and consumers.

On Monday, Gov. JB Pritzker signed a bill that was passed during a recent legislative session. While the tax is being repealed statewide, local governments can decide to keep it within their community.

Several Illinois cities included in the QCA that have numbers available for their 1% tax on edible products include:

• East Moline at $579,000
• Milan at $570,000
• The pound sterling, between 500,000 and 1 million dollars

The tax applies to grocery items intended to be consumed outside of a store and affects all cities in Illinois.

Each city will have until October 2025 to avoid a drop in revenue.

“Even with inflation cooling, every dollar counts, so I’m proud that we’re doing what we can to make trips to the grocery store a little bit easier,” said Governor Pritzker. “It’s a bigger part of easing the burden Illinois families face. Establishing a child tax credit, eliminating medical debt, lowering the cost of health care, making college more affordable, bringing quality child care closer to homes so moms and dads can go to work — these aren’t esoteric policy proposals, but they truly ease the burdens Illinoisans face every day.”

TV6 last reported on Governor Pritzker’s plan to eliminate the grocery sales tax in March.

When TV6 spoke to Rock Island city officials, they said this would result in an estimated loss of $1 million in revenue and would subtract funds used for public safety and other services.

Rock Island Mayor Mike Thoms said he’s concerned about how they’ll make up for the lost revenue.

Illinois is one of 11 states that tax food.

Copyright 2024 KWQC. All rights reserved.