Starting July 1, shoppers across Illinois will feel the pinch as new local tax hikes quietly take effect, raising the total checkout cost in dozens of towns.
Close to 50 municipalities are bracing for increases ranging from 0.25% to a hefty 2% on local sales taxes. And that’s on top of the 6.25% base state rate already in place. That means shopping trips in areas like Colfax, Danvers, and Hudson will now come with an even steeper receipt.
These aren’t just random bumps. The Illinois Department of Revenue has greenlit hikes across a range of tax types including business district sales taxes, mental health funding levies, public safety fees, school facilities support taxes, and both home rule and non-home rule municipal sales taxes. Combined, they’re expected to make a serious dent in consumer wallets statewide.
Local taxes like these are tacked on by cities or counties to bring in more revenue, and 38 out of 45 U.S. states that have state sales taxes allow these kinds of additional fees. Illinois, already with a high average combined rate of 8.86% last year, is taking it up a notch. Residents can double-check their area’s updated rate with the Illinois Department of Revenue’s “MyTax Illinois” rate finder.
The only break in sight? Grocery staples are safe, for now. The tax hikes only apply to general merchandise, not food, drugs, or medical appliances. That means your milk, bread, and over-the-counter meds won’t be affected by this surge. But that won’t last forever either. Illinois plans to eliminate its 1% grocery tax in 2026, but counties and cities will get the green light to slap on up to 1% in local grocery taxes themselves.
And the tax hike doesn’t stop at your shopping cart. Illinois is also rolling out a bump in gas taxes, from 45 cents to 48.3 cents per gallon, while diesel prices will rise with an extra cent tacked on. Sports betting isn’t safe either. A new tax of 25 cents per wager will hit the first 20 million bets, doubling to 50 cents afterward.
If you thought it couldn’t get worse, July 1 also brings a ban affecting your shower essentials. A new law targets certain plastic bottles, while a separate energy rule will cause utility bills to spike across the state due to a mysterious “capacity charge.”
So while that quick Target or Walmart run may feel the same on the surface, Illinois shoppers are about to notice their totals creeping higher. Even though groceries are spared for now, the broader price impact is clear. Whether you’re buying a T-shirt or betting on a game, you’ll be paying more, and soon.
- These 9 States Are Taxing Social Security Benefits - June 27, 2025
- Illinois Sales Tax Increase Hits Shoppers July 1 - June 27, 2025
- Walmart Launches Dark Stores to Compete with Amazon - June 27, 2025
