The sales tax rate in Downers Grove, Illinois is 8.50% on general merchandise as of January 1, 2026. That figure reflects two changes that took effect the same day: the Village raised its home rule sales tax, and a new regional transit surcharge kicked in across DuPage County. Groceries, prescription medicine, and vehicles each follow different rules, and one of them changed significantly in 2026.
How the 8.50% Breaks Down
Every general merchandise purchase in Downers Grove stacks taxes from three layers.
The Illinois state rate of 6.25% forms the base. Internally that number splits — roughly 5% stays with the state, 1% is returned to the municipality, and 0.25% goes to DuPage County — but shoppers just see 6.25% on the receipt.1DuPage County. Sales Taxes
The Regional Transportation Authority adds 0.75%. That rate itself is new. DuPage County previously paid 0.50% in RTA tax, but the NITA Act authorized an additional 0.25% across the six-county RTA region starting in 2026.2Regional Transportation Authority. Keeping Riders Moving
The Village of Downers Grove then layers on a 1.50% home rule retailers’ occupation tax, up from 1.00% effective January 1, 2026.3Illinois Department of Revenue. Sales Tax Rate Change Summary, Effective January 1, 2026 Home rule authority under the Illinois Municipal Code lets villages impose this tax in quarter-percent increments on tangible personal property sold at retail within their boundaries.4Illinois General Assembly. Illinois Code 65 ILCS 5 – Illinois Municipal Code
Add it up: 6.25% state + 0.75% RTA + 1.50% village = 8.50% on clothing, electronics, household goods, and most other retail purchases.5Village of Downers Grove. Ordinance 2025-10893 – Home Rule Sales Tax
What You Pay on Groceries
This is where residents saw the biggest change. Effective January 1, 2026, Illinois eliminated its 1% state sales tax on groceries entirely.6Illinois Department of Revenue. Municipal and County Grocery Occupation Tax Rate Changes Before this change, qualifying groceries carried a reduced 1% state rate instead of the standard 6.25%. Now the state portion is zero.
The Downers Grove home rule tax has always excluded groceries, and the Village’s ordinance specifically states the home rule tax does not apply to food for human consumption purchased for off-premises use.5Village of Downers Grove. Ordinance 2025-10893 – Home Rule Sales Tax The RTA tax on groceries remains in effect regardless of the state change.6Illinois Department of Revenue. Municipal and County Grocery Occupation Tax Rate Changes
“Groceries” under Illinois law means food for human consumption that will be eaten off-premises. The category excludes alcoholic beverages, cannabis-infused food, soft drinks, candy, and food prepared for immediate consumption.7Illinois Department of Revenue. Tax Rate Information for Retail Sales of Food and Medicine (PIO-115) The “immediate consumption” distinction trips people up. A sandwich you grab from a deli case counts as a grocery. A sandwich made to order does not, and it gets taxed at the full general merchandise rate. Hot foods are always treated as prepared for immediate consumption. Bakery items like doughnuts, bagels, and rolls sold for takeaway qualify as groceries even when the retailer bakes them on-site.
If a store has seating or an eat-in area, all food sales there are presumed to be at the higher rate unless the retailer physically separates the dining area from the grocery section and keeps separate accounting for each type of sale.
Prescription Drugs and Medical Items
Prescription and nonprescription medicines, medical appliances, insulin, and diabetic testing supplies still carry the state’s reduced 1% rate rather than the 6.25% general merchandise rate.8Cornell Law Institute. Illinois Code 86 – Taxation of Food, Drugs and Medical Appliances The grocery tax elimination did not touch this category. The Downers Grove home rule tax also excludes these medical items from its scope, just as it excludes groceries.5Village of Downers Grove. Ordinance 2025-10893 – Home Rule Sales Tax The result: prescription medications and qualifying medical devices carry a substantially lower tax burden than general retail goods.
Vehicles and Other Titled Property
Cars, trucks, trailers, watercraft, and other property that must be titled or registered with an Illinois state agency follow separate rules. The home rule retailers’ occupation tax explicitly excludes titled or registered items from its reach.9Cornell Law Institute. Illinois Administrative Code Title 86, 270.101 – Nature of the Home Rule Retailers Occupation Tax Downers Grove’s 1.50% home rule tax never applies to a vehicle purchase, regardless of whether the dealership sits within village limits.
Dealers report these sales on Form ST-556 rather than the standard sales tax return, and the applicable local rate is based on where the vehicle will be titled, meaning the buyer’s home address rather than the dealership’s location.10Illinois Department of Revenue. Sales and Use Taxes If you live in Downers Grove but buy a car in another town, the local tax component reflects Downers Grove’s rates (minus the inapplicable home rule portion). The total on a vehicle will be lower than the 8.50% general merchandise rate.
Checking the Current Rate
Rates in Downers Grove can change whenever the Village, DuPage County, or the state legislature adjusts its portion, and 2026 is a case in point: three different rate components all changed on the same date. The Illinois Department of Revenue maintains a Tax Rate Finder tool through MyTax Illinois where shoppers and retailers can look up the exact combined rate for any address in the state.11Illinois Department of Revenue. Home Rule and Non-Home Rule Sales Taxes It accounts for every overlapping tax district and reflects changes as they take effect, so it’s the reliable source if you need to confirm a number before a big purchase.