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ILLINOIS LAWMAKER PROPOSES SWEEPING STATEWIDE BAG TAX WITH INCREASING FEES

By Mark Wells Feb 6, 2026 | 11:52 AM

Shoppers across Illinois could soon face new checkout fees for every bag they use under legislation proposed by Chicago-area State Representative Laura Faver Dias (D). The bill, known as HB5112, would require all retail and grocery stores in the state to charge customers a fee for every carryout bag—whether plastic, paper, or reusable—starting in 2027.

The measure is designed to curb waste and encourage the use of reusable bags by incrementally raising the fee each year. According to the legislation, the fee schedule would start at 10 cents per bag in 2027, rising to 15 cents in 2028, 20 cents in 2029, and 25 cents in 2030. After 2030, the fee would increase by five cents annually until consumers stop using grocery bags altogether.

Bag Fee Schedule:

Year Fee per Bag
2027 $0.10
2028 $0.15
2029 $0.20
2030 $0.25
2031+ Increases by $0.05 per year

The money raised from the bag tax would be collected by the Illinois Department of Revenue and sent to Springfield. Retailers will be required to itemize the fee on customers’ receipts, ensuring transparency at checkout.

The proposal also includes enforcement measures, with fines of up to $1,000 for stores that fail to comply with the law.

Notably, the legislation goes further for home delivery shoppers: Under HB5112, Illinoisans who use home grocery delivery would be banned from receiving their groceries in bags.

There are no exemptions in the proposed bill—every customer and every type of checkout bag would be subject to the new fees.

A typical shopper using five bags per week would pay $26 in bag fees annually in 2027, increasing to $65 per year by 2030, with the cost continuing to rise in subsequent years. The bill will be debated in the coming legislative session.