Chicago Sales Tax
Illinois. Combined state + county + city. Category exemptions and how it compares to neighboring states.
Category exemptions in Illinois
What gets taxed and what's exempt — these rules apply across the entire state of Illinois, including Chicago.
| Category | Rule | Detail |
|---|---|---|
| Groceries | Reduced rate | 1% reduced state rate (vs 6.25% standard) |
| Clothing | Taxed (full rate) | Full rate |
| Prescription drugs | Reduced rate | Prescribed medications dispensed by a licensed pharmacist. |
Sales tax on common amounts
| Purchase | Tax | Total |
|---|---|---|
| $10 | $1.02 | $11.03 |
| $50 | $5.13 | $55.13 |
| $100 | $10.25 | $110.25 |
| $250 | $25.63 | $275.63 |
| $500 | $51.25 | $551.25 |
| $1,000 | $102.50 | $1102.50 |
| $5,000 | $512.50 | $5512.50 |
| $10,000 | $1025.00 | $11025.00 |
Border shopping — neighboring states
For larger purchases, driving to a neighboring state with lower sales tax can save real money. Top metro sales tax in each contiguous neighbor of Illinois.
| State | Reference city | Rate | vs Chicago | $1,000 savings |
|---|---|---|---|---|
| Illinois (current) | Chicago | 10.25% | — | — |
| Wisconsin | Madison | 5.50% | -4.75% | $47.50 |
| Kentucky | Louisville | 6.00% | -4.25% | $42.50 |
| Indiana | Indianapolis | 7.00% | -3.25% | $32.50 |
| Iowa | Des Moines | 7.00% | -3.25% | $32.50 |
| Missouri | Columbia | 7.95% | -2.30% | $23.00 |
Use tax (state where you live) may still apply on out-of-state purchases for items shipped or for registered goods like vehicles. For everyday retail walked across the border, savings are realized at point of sale.
Other cities in Illinois
Naperville has the lowest combined rate in our Illinois coverage at 7.50% — that's 2.75% below Chicago ($27.50 less per $1,000 spent).
Common questions
- What is the total sales tax rate in Chicago?
- Chicago, Illinois charges a combined sales tax of 10.25%. That's 6.25% state tax plus 4.00% local (county + city + special district) on top.
- Are groceries taxed in Chicago?
- Illinois applies a reduced rate to groceries. 1% reduced state rate (vs 6.25% standard)
- Is clothing taxed in Chicago?
- Yes — Illinois taxes clothing at the full combined rate of 10.25%.
- How do I save on sales tax when shopping in Chicago?
- Three levers: (1) shop online from a state with no sales tax, (2) buy exempt categories (prescriptions), (3) drive across the border if a nearby state has a lower rate.
Full data sources and formulas: /sources.
Estimate only — not tax advice. Local sales tax rates change frequently and may include special district levies not modeled here. Verify with the retailer or local taxing authority for large purchases. Category exemption rules and tax holidays change by year — check the Illinois Department of Revenue for current rules. Methodology → Illinois state rate →
Last reviewed: · Beforeview Editorial · editorial policy