According to data from the Illinois Department of Revenue, 46 towns in Illinois will maintain the 1% grocery tax when the statewide tax expires in 2026. Meanwhile, the rest of the state will benefit from a 1% reduction in grocery prices.
Communities have until October to determine whether to retain or eliminate the 1% tax on essential grocery items. In Fairfield, residents would save an estimated $102,396 while the government lost out.
During the year the state suspended the grocery tax to address rising inflation, shoppers saved a total of $360 million, equating to approximately $30 per resident. For a family of four, this could translate to savings of about $115 annually on groceries, depending on their location.
The revenue from the grocery tax is exclusively allocated to local governments, meaning they will need to choose between making budget cuts or keeping the grocery tax. Illinois is one of only 13 states that impose a grocery tax and the only one among the 10 most populated states.
A table detailing grocery tax revenue by community for 2023 provides insights into the potential impact of either repealing or imposing the tax on local residents.
In 2026, the grocery tax could be permanently abolished, a change that 70% of Illinois voters support.
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