The Chicago sales tax rate on general merchandise is 10.25%. That combined figure covers most retail purchases you make in the city, including clothing, electronics, furniture, and household goods. It’s built from four separate government levies stacked together, and a scheduled transit-funding increase will push it to 10.50% in mid-2026.
What Makes Up the 10.25%
Every taxable purchase in Chicago funnels money to four different governments at once. The State of Illinois takes the biggest share at 6.25% under the Retailers’ Occupation Tax Act.1Illinois General Assembly. Illinois Code 35 ILCS 120/2-10 – Rate of Tax Cook County adds 1.75%, the City of Chicago adds 1.25%, and the Regional Transportation Authority adds 1.00% to fund area transit.2Cook County Government. Cook County Tax Policies and History
- State of Illinois: 6.25%
- Cook County: 1.75%
- City of Chicago: 1.25%
- Regional Transportation Authority: 1.00%
Retailers collect the full 10.25% at the register and remit it to the Illinois Department of Revenue, which then sends each government its cut. You don’t pay each layer separately, and you don’t see the split on your receipt.
The June 2026 Increase to 10.50%
Legislation already signed into law raises the RTA share from 1.00% to 1.25% in Cook County starting in June 2026. Once that takes effect, Chicago’s combined general merchandise rate climbs to 10.50%. The state, county, and city portions stay the same. If you’re planning a large purchase like appliances or electronics, buying before June saves a quarter percent.
Groceries and Medicine Are Taxed Lower
Illinois eliminated its state sales tax on qualifying groceries on January 1, 2026.1Illinois General Assembly. Illinois Code 35 ILCS 120/2-10 – Rate of Tax Food for human consumption meant to be eaten off-premises, meaning typical grocery items like produce, meat, dairy, and bread, is now exempt from the 6.25% state tax.3Illinois Department of Revenue. FY 2026-11, Municipal and County Grocery Occupation Tax Rate The same law lets municipalities and counties impose their own grocery-level taxes, so some local tax may still appear on your Chicago grocery receipt. Check closely. The total will be well below 10.25%, but it may not be zero.
Prescription and nonprescription medicines, plus medical appliances, are taxed at 1% by the state. Medical appliances include items that substitute for a body part or function: artificial limbs, pacemakers, wheelchairs, hearing aids, eyeglasses, contact lenses, and orthodontic braces all qualify.4Illinois General Assembly. Illinois Administrative Code Title 86, Section 130.311 – Drugs, Medicines, Medical Appliances Insulin, blood sugar testing supplies, and syringes for diabetic use fall into the same reduced tier.
Restaurants, Candy, and Soft Drinks Get the Full Rate
The grocery exemption has real limits. Candy, soft drinks, alcoholic beverages, and any food prepared for immediate consumption are taxed at the full general merchandise rate.5Illinois Department of Revenue. PIO-115 – Tax Rate Information for Retail Sales of Food and Medicine Hot food is always considered prepared for immediate consumption, so a rotisserie chicken from a deli counter gets the full 10.25% even though raw chicken qualifies for the grocery exemption.
Restaurant meals in Chicago carry an extra bite. The city imposes a 0.50% restaurant tax on top of the standard combined rate, bringing the total on a sit-down or takeout meal to 10.75%, or 11.00% once the RTA increase takes effect in June 2026.6City of Chicago. Restaurant Tax (7525) Visitors often notice it only when the check arrives.
Cars and Other Titled Vehicles
Buying a car, truck, motorcycle, or trailer works differently. The tax rate is based on your home address, not the dealership’s location, because the revenue goes to the local government where you’ll register and use the vehicle.7Illinois Department of Revenue. RUT-25 – Vehicle Use Tax Transaction Return Instructions If you live in Chicago, that generally means paying the full combined city, county, and RTA layers on top of the state’s 6.25%, even if you bought the vehicle elsewhere. The transaction is handled through Form RUT-25 when you title and register at a Secretary of State facility or currency exchange, and proof of tax payment is required before your title or plates will be issued.
Online Orders Shipped to Chicago
Order something online for delivery to a Chicago address and expect Chicago’s full combined rate. The Leveling the Playing Field for Illinois Retail Act requires remote sellers to collect Illinois sales tax based on where the buyer receives the goods, not where the seller is located.8Illinois General Assembly. Illinois Code 35 ILCS 185 – Leveling the Playing Field for Illinois Retail Act
As of January 1, 2026, an out-of-state retailer must collect Illinois sales tax if it makes $100,000 or more in cumulative gross receipts from sales to Illinois buyers during the applicable lookback period. The old 200-transaction threshold no longer applies.9Illinois Department of Revenue. FY 2026-12, Destination-Based Retailers’ Occupation Tax Changes Any large online retailer or marketplace already clears that bar, so the tax should appear automatically at checkout. If it doesn’t, you technically owe the equivalent amount as use tax on your Illinois income tax return.
SNAP Purchases Are Tax-Free
Items bought with SNAP benefits are exempt from all state and local sales tax. Retailers cannot charge sales tax on the SNAP-funded portion of a transaction.10Food and Nutrition Service. SNAP Retailer Notice – Sales Tax, Fees, and Refunds When a purchase is split between SNAP and another payment method, sales tax applies only to the non-SNAP portion. This is a federal rule, so it holds regardless of any changes to Illinois or Chicago rates.