Governor Pritzker signs bill eliminating state food tax

CHICAGO, Ill. (KFVS) – Illinois Gov. JB Pritzker signed an omnibus local government tax bill into law Monday that eliminates the state tax on grocery items.

This means the state’s 1 percent tax is repealed statewide. However, local governments have the option to impose the tax, according to a statement from the governor’s office.

The one percent tax applies to edible products intended to be consumed off-premises.

According to the release, Illinois was one of only 11 states that taxed food. The tax reduction will go into effect on January 1, 2026.

“Even with inflation cooling, every dollar counts, which is why I’m proud that we’re doing what we can to make trips to the grocery store a little easier,” said Governor Pritzker.

According to the release, this bill also legislates several other rules and regulations of the municipal tax code, including surcharges for prepaid wireless telephone service and an occupancy tax on hotel operators.

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