Over 650 cities and towns in Illinois to retain 1% grocery tax

ROCKFORD, Ill. (WTVO) — A total of 656 municipalities in Illinois will continue applying a sales tax to groceries, even though the state eliminated the tax, beginning January 1st, 2026.

Illinois cities, towns, and villages had until October 1, 2025, to decide if they want to continue a local grocery tax. Otherwise, they were tasked with finding other ways to source those funds, including making cutbacks.

According to the Illinois Municipal League, 656 municipalities, more than half, adopted an ordinance to establish a local 1% grocery tax, including Rockford, Loves Park, Machesney Park, Rockton, South Beloit, and Freeport,

In 2022, an election year, Gov. JB Pritzker proposed a 12-month reduction of the state’s grocery tax from 1% to zero. Funds were increased in the budget for that period to assist local governments impacted by the lost revenue. The tax kicked back in for fiscal year 2024. 

That year, Pritzker signed a law repealing the tax as part of the state budget, saying, “I’m proud we’re doing what we can to make trips to the grocery store a little easier. It’s one more important part of lifting the burden on Illinois families.”

The Rockford City Council voted to implement a 1% grocery tax in July 2025. The loss of the grocery tax would have cost the city nearly $9 million in local revenue each year.

“Cutting this and being able to be putting on their mailers and things of that nature, that’s fantastic for politics. It’s horrible for governance,” Rockford Mayor Tom McNamara said at the time. “This is really taking revenue from the very basic things that residents need and that government should be providing.”

Loves Park Mayor Greg Jury said the city stood to lose between $500,000 and $600,000 each year without the tax.

Belvidere’s City Council unanimously voted to drop the tax. Shoppers would save $1 for every $100 spent on groceries in Belvidere.