Chicago Sales Tax Calculator

Chicago & Illinois Sales Tax Calculator

Calculate accurate sales tax for Chicago, Cook County, and all of Illinois — including category-specific rates for groceries, medicine, restaurants, and more.

What Is This Tool?

This calculator helps shoppers, business owners, accountants, and travelers instantly calculate the exact sales tax owed on any purchase in Illinois — with special support for the City of Chicago, where tax rates vary significantly by product category.

Whether you’re ringing up a sale at a Chicago restaurant, buying prescription medicine, filling up at a gas station, or purchasing a new car, this tool applies the correct layered tax rate automatically.

How Illinois & Chicago Sales Tax Works

Sales tax in Illinois is not a single flat number. It is a stack of rates levied by multiple governments simultaneously:

All these rates add together to produce the effective rate you pay at the register.

Tax Rates by Category

Illinois and Chicago apply different rates depending on what you’re buying. Here’s a breakdown:

General Merchandise

Combined rate: ~10.25%

The standard rate applied to most retail goods — electronics, clothing, furniture, and everything else not in a special category. In Chicago, this is among the highest combined general merchandise rates in the United States.

• Illinois state: 6.25%
• Cook County: 1.75%
• City of Chicago: 1.25%
• CTA/RTA: 1.00%

Effective since: Chicago’s Home Rule sales tax has been in place since 1990, with incremental increases over the decades.

Restaurant & Prepared Food

Combined rate: ~10.75%

Any food that is prepared and ready to eat — dine-in meals, takeout, fast food, café beverages — is taxed at a higher rate than grocery items. The additional levy exists because prepared food is considered a “luxury” consumption compared to raw groceries.

• Illinois base (prepared food): 6.25%
• Cook County: 1.75%
• City of Chicago: 1.25%
• CTA/RTA: 1.00%
• Chicago restaurant surcharge: 0.50%

Why does this category exist? Illinois draws a legal line between “food for immediate consumption” and “food for home preparation.” That distinction directly affects the tax rate.

Grocery & Qualifying Food

Combined rate: ~2.25%

Illinois offers a dramatically reduced tax rate for food intended to be prepared at home — unprepared groceries, raw ingredients, canned goods, and similar items. This is one of the most significant consumer-friendly tax policies in the state.

• Illinois state (qualifying food): 1.00%
• Cook County: 0.75%
• City of Chicago: 0.50%

History: Illinois reduced the state tax on qualifying food and drugs from 6.25% to 1% back in the 1980s as a measure to ease the cost-of-living burden on lower-income households. It has remained at 1% ever since.

Note: Items like bottled water, candy, soft drinks, and energy drinks do NOT qualify for the reduced food rate and are taxed at the general merchandise rate.

Medicine & Prescription Drugs

Combined rate: ~1.00%

Prescription drugs and many over-the-counter medications qualify for the lowest tax category in Illinois. The intent is to make healthcare more accessible and affordable.

• Illinois state (qualifying drugs): 1.00%
• Cook County: 0% (exempt)
• City of Chicago: 0% (exempt)

Who qualifies? Prescription drugs, insulin, and most OTC medications. Cosmetics, vitamins, and supplements generally do NOT qualify for this reduced rate.

Why this rate? Illinois, like many states, recognizes that taxing medicine at the full rate creates a financial barrier to healthcare access. The near-zero rate has been in place for decades.

Auto / Vehicle Purchases

Combined rate: ~6.25% (state) + local fees

Vehicles are taxed differently from retail goods. The state collects a use tax at the time of title transfer, and additional fees apply at the county and city level.

• Illinois state use tax: 6.25%
• Chicago personal property lease tax (for vehicle leases): additional
• Cook County vehicle tax: variable
• City sticker / registration fees: separate flat fees

Important: If you buy a car outside Illinois and bring it into the state, you still owe Illinois Use Tax. Trade-in credits can reduce your taxable base.

Custom / Variable Rate

For businesses with special tax situations — multiple locations, mixed-category sales, or out-of-state nexus — the calculator allows you to enter custom rates manually. This is useful for:

• Sales at Illinois locations outside Chicago (where rates differ)
• Mixed merchandise transactions
• Comparing what-if scenarios for tax planning

RTA Tax: What Is It and Why Do You Pay It?

The Regional Transportation Authority (RTA) tax — sometimes called the “Chicago Transit” or “CTA” tax — adds approximately 1.0% to most retail transactions in the six-county Chicago metropolitan area (Cook, DuPage, Kane, Lake, McHenry, and Will counties).

This surcharge was established to fund the Chicago Transit Authority (CTA), Metra commuter rail, and Pace bus services. It was authorized under the Regional Transportation Authority Act and has been collected since the 1980s, with the current rate structure largely set after a 2008 transit funding reform.

If you live or shop in the Chicago metro area, you are helping fund the region’s public transportation network with every taxable purchase.

Illinois Use Tax: When Sales Tax Isn’t Collected

If you buy something from an out-of-state retailer and no Illinois sales tax is collected at the time of purchase, you legally owe Illinois Use Tax at the same rate as sales tax.

This commonly applies to:

• Online purchases from retailers without Illinois nexus (though post-South Dakota v. Wayfair (2018), most large online retailers now collect this)
• Items purchased in another state and brought into Illinois
• Goods purchased for business use

Illinois residents are required to report and pay use tax on their annual state income tax return.

Who Uses This Calculator?

Shoppers & Consumers

Verify the tax on a big purchase before you buy. Know whether that item qualifies for the reduced food or medicine rate. Calculate the true out-of-pocket cost including tax.

Small Business Owners & Retailers

Correctly calculate the tax to collect from customers. Avoid under-collecting (which creates liability) or over-collecting (which erodes customer trust). Useful for cashier training and sales quotes.

Accountants & Bookkeepers

Quickly verify tax amounts on invoices and receipts. Double-check that the correct category rate was applied to each line item.

Restaurant & Food Service Operators

Confirm whether menu items qualify as “prepared food” vs. “qualifying food” for tax purposes. Calculate correct tax on catering invoices and customer-facing bills.

Out-of-State Businesses with Illinois Nexus

Determine the correct rate to charge Illinois customers. Chicago’s layered system is notoriously complex for businesses unfamiliar with the region.

Travelers & Visitors

Understand why your Chicago hotel bill, restaurant check, or shopping total includes more tax than you expected. Chicago consistently ranks among the highest-taxed cities in the U.S. for certain categories.

Why Chicago’s Tax Rates Are So High

Chicago operates as a Home Rule municipality, which under Illinois law grants it broad authority to impose local taxes beyond the state baseline. The city has used this authority extensively to fund city services, infrastructure, and regional transit without raising property taxes.

The layered structure — state + county + city + RTA + special districts — means Chicago shoppers often pay 2–4 percentage points more than shoppers in downstate Illinois cities like Springfield or Peoria, even on identical items.

Frequently Asked Questions (FAQs)

What is the current sales tax rate in Chicago?

The general merchandise rate in Chicago is 10.25%. Restaurants charge 10.75%. Groceries are taxed at just 2.25%, and most medicines at approximately 1.00%. Rates vary by product category.

Is food taxed in Illinois?

Yes, but at a much lower rate. Qualifying food (unprepared groceries intended for home use) is taxed at around 1% at the state level, resulting in a combined rate of roughly 2.25% in Chicago. Prepared food (restaurant meals, ready-to-eat items) is taxed at the full 10.75%.

Are prescription drugs taxed in Illinois?

Prescription drugs are taxed at 1% (state rate only). Cook County and the City of Chicago do not add additional tax on qualifying prescription medications.

Does Illinois charge tax on candy and soda?

Yes. Candy, soft drinks, alcoholic beverages, and energy drinks are taxed at the general merchandise rate (10.25% in Chicago), not the reduced grocery rate.

What is the RTA tax on my receipt?

The RTA (Regional Transportation Authority) tax is a surcharge of approximately 1.0% added to most taxable purchases in the six-county Chicago metro area. It funds the CTA, Metra, and Pace transit systems.

How is a vehicle taxed differently from other purchases?

Vehicles are subject to Illinois Use Tax (6.25%) paid at the time of title transfer, rather than collected at the point of sale like retail goods. Additional Cook County and City of Chicago fees may apply. Trade-in values typically reduce the taxable base.

Does Chicago have the highest sales tax in the US?

Chicago routinely ranks in the top tier of highest combined sales tax rates among major U.S. cities, particularly for general merchandise and restaurants. The exact ranking fluctuates as other cities adjust their rates.

If I buy online, do I pay Chicago sales tax?

If the retailer has nexus (a physical or economic presence) in Illinois, yes — they are required to collect and remit Illinois sales tax at the applicable rate for your delivery address. Since the South Dakota v. Wayfair (2018) Supreme Court decision, most large e-commerce retailers collect Illinois tax automatically.

How often do Chicago/Illinois tax rates change?

State rates require an act of the Illinois General Assembly. Cook County and City of Chicago rates can be changed by their respective governing bodies. Historically, the city has made incremental adjustments every few years. Always verify current rates with the Illinois Department of Revenue (IDOR) for official figures.

What is Illinois Use Tax?

Illinois Use Tax applies when you purchase taxable items without paying Illinois sales tax — typically from out-of-state sellers. The rate is the same as sales tax. It must be reported on your Illinois income tax return if not collected at the point of sale.

Are services taxed in Illinois?

Generally, no. Illinois sales tax applies primarily to tangible personal property (physical goods). Most services are not subject to Illinois sales tax, though some specific services (like certain utility services) carry their own levies.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller at the point of sale. Use tax is self-reported by the buyer when sales tax was not collected. Both are owed to Illinois at the same rate; the mechanism of collection differs.

Does this calculator cover all Illinois locations?

The calculator is optimized for Chicago and Cook County. For other Illinois municipalities (Evanston, Naperville, Rockford, etc.), rates will differ. Illinois has hundreds of local taxing jurisdictions. For locations outside Chicago, use the custom rate entry feature or verify your specific rate with the IDOR.

Official Resources

• Illinois Department of Revenue (IDOR): tax.illinois.gov — Sales tax rates database, use tax information, and MyTax Illinois filing portal.
• City of Chicago Department of Finance: chicago.gov/city/en/depts/fin.html — Chicago municipal tax filing, voluntary disclosure, and business tax information.
• Cook County Department of Revenue: cookcountyil.gov/agency/department-revenue — Cook County home rule tax registration, compliance, and taxpayer portal.
• Regional Transportation Authority (RTA): rtachicago.org — RTA funding, transit planning, and information on the regional sales tax surcharge.

Tax rates are subject to change. This tool is for informational and estimation purposes. For official tax advice, consult a licensed tax professional or the Illinois Department of Revenue.

Last updated: 2025. Rates reflect current Chicago, Cook County, and Illinois state tax structures.