Illinois Grocery Tax Eliminated January 1, 2026: How Much Springfield Residents Will Save

Last Updated: December 31, 2024

Quick Answer: Illinois eliminates its 1% statewide grocery tax on January 1, 2026. However, 656 Illinois municipalities—covering 56.5% of the state's population—have enacted local 1% grocery taxes to replace it. Springfield residents need to check if their local government adopted the replacement tax, as this determines whether they'll see actual savings at checkout.

What Springfield Residents Need to Know About the Illinois Grocery Tax Change

Starting tomorrow, January 1, 2026, Illinois officially ends its statewide 1% sales tax on groceries—a change signed into law by Governor JB Pritzker in 2024. This move places Illinois among 38 states without a state-level grocery tax and was promoted as tax relief for families facing rising food costs.

However, there's a critical detail Springfield shoppers must understand: While the state tax ends, Illinois law now allows every municipality and county to impose their own 1% local grocery tax without voter approval. Over 656 communities across Illinois—including many in Sangamon County—have already adopted this local tax.

The bottom line: Whether Springfield-area residents actually save money depends entirely on whether your city or county passed a local grocery tax ordinance. In many cases, the tax rate will stay exactly the same—just collected locally instead of by the state.

Does Springfield, Illinois Have a Local Grocery Tax?

As of December 31, 2024, over 600 Illinois municipalities filed ordinances with the Illinois Department of Revenue (IDOR) to implement local 1% grocery taxes effective January 1, 2026. To determine if Springfield, Sherman, Chatham, Rochester, or your specific Sangamon County community has a local grocery tax:

Check the official IDOR list: Visit tax.illinois.gov and search for "Local Government Grocery Tax Ordinance Information"
Use the MyTax Illinois Rate Finder: Enter your address at mytax.illinois.gov to see January 2026 tax rates
Contact your local government: Call Springfield City Hall (217-789-2000) or your municipality's offices
Check your grocery receipt starting January 1: Compare the tax rate to receipts from December 2024

Sangamon County Communities and the Grocery Tax

Here's what we know about central Illinois municipalities:

Springfield, IL: Check official city website for latest ordinance status
Chatham, IL: Verify with Village Hall (217-483-6507)
Sherman, IL: Contact Village (217-496-2621)
Rochester, IL: Call Village Hall (217-498-7116)
Sangamon County (unincorporated areas): Contact County Board (217-753-6700)

Neighboring counties like Menard, Logan, and Christian have varying approaches, so residents living outside Springfield city limits should verify their specific municipality's status.

What Items Are Covered by the Illinois Grocery Tax Change?

The tax change affects "groceries"—defined as food for human consumption purchased for off-premises consumption. This includes:

Covered by 1% Grocery Tax:

Fresh fruits and vegetables
Meat, poultry, seafood
Dairy products (milk, cheese, yogurt, eggs)
Bread, cereal, rice, pasta
Canned and frozen foods
Cooking oils, spices, condiments
Baby food and formula
Bottled water (non-carbonated)

NOT Covered (Taxed at Full General Merchandise Rate):

Alcoholic beverages
Soft drinks and soda
Candy
Prepared food for immediate consumption (restaurant meals, hot deli items)
Cannabis-infused food products
Non-food items (paper products, cleaning supplies, pet food)

This definition matches Illinois' existing "qualifying food" rules under 86 Ill. Adm. Code Section 130.310, ensuring consistency across the state.

How Much Money Will Springfield Families Save?

The potential savings depend on two factors: your annual grocery spending and whether your municipality kept the local tax.

Scenario 1: Your Community Did NOT Adopt Local Grocery Tax

If Springfield or your Sangamon County municipality chose not to implement a local grocery tax, here's what families save:

Monthly Grocery Spending	Annual Spending	1% Tax Savings (Annual)
$400	$4,800	$48
$600	$7,200	$72
$800	$9,600	$96
$1,000	$12,000	$120
$1,500	$18,000	$180

According to the USDA, the average American family of four spends $800-$1,200 monthly on groceries. For Springfield families in this range, savings would be approximately $96-$144 annually.

Scenario 2: Your Community Adopted Local Grocery Tax

If your municipality passed a local 1% grocery tax ordinance (which 656 Illinois municipalities did), you'll see ZERO savings. The tax rate remains 1% on January 1, 2026—the only difference is that revenue now stays with your local government instead of being distributed by the state.

Why Did So Many Illinois Cities Keep the Grocery Tax?

The decision by 656+ municipalities to implement local grocery taxes wasn't about raising taxes—it was about preventing massive budget shortfalls. Here's why:

The Revenue Reality

State collects, municipalities receive: Under the old system, Illinois collected the 1% grocery tax and distributed it to local governments
Critical municipal revenue: This funding supported police, fire departments, road maintenance, parks, and essential services
No state loss: The state gave up zero revenue because all grocery tax money already went to municipalities
Local budget crisis: Without replacement revenue, many Illinois cities faced multi-million dollar shortfalls

Springfield's Financial Impact Example

While specific figures vary, mid-sized Illinois cities like Orland Park estimated a $2.5 million annual loss from grocery tax elimination. Springfield, as the state capital with a population of 114,000+, would face similar or greater impacts without a replacement revenue source.

Municipalities had three choices:

Adopt local 1% grocery tax → Maintain revenue, no savings for consumers
Raise other taxes → Property taxes, sales taxes, or fees increase elsewhere
Cut services → Reduce police, fire, roads, parks, or other essential services

Most Illinois municipalities chose option #1, viewing it as the path of least disruption to both residents and services.

How to Find Out If You're Paying the Local Grocery Tax

Option 1: Check Your Receipt (Easiest Method)

Save a grocery receipt from December 31, 2024
Make a purchase on January 1, 2026 at the same store
Compare the tax rates on eligible grocery items
If the rate stayed the same, your municipality adopted the local tax
If it dropped by 1%, your community did not adopt the local tax

Option 2: Use the Illinois Tax Rate Finder

Visit mytax.illinois.gov
Select "Tax Rate Finder"
Enter your Springfield address or zip code
Choose "January 2026" for the effective date
Review the breakdown showing grocery tax rates

Option 3: Check the Official IDOR Status Report

Go to tax.illinois.gov/localgovernments/localtaxallocation/grocery-tax-ordinance-info.html
Download the "Local Government Grocery Ordinance Status Report"
Search for your municipality name
Check if status shows "Approved" with January 1, 2026 effective date

Understanding Illinois' Complicated Tax System

For Springfield-area shoppers, it's helpful to understand how Illinois structures sales taxes:

What Makes Up Your Total Sales Tax?

When you shop in Springfield, your total sales tax includes multiple layers:

State general sales tax: 6.25% on most items
Local sales taxes: County, city, or special district rates (varies by location)
Grocery tax (old system through 12/31/2024): 1% state rate on qualifying food
Grocery tax (new system from 1/1/2026): Optional 1% local rate on qualifying food

Springfield's combined sales tax rate is currently 8.25% on general merchandise. Groceries were taxed at 1% statewide. Starting January 1, 2026, the rate structure depends on local ordinances.

Special Cases: RTA and Metro-East Districts

Springfield shoppers generally don't deal with this, but Illinois residents in:

RTA (Regional Transportation Authority) areas: Chicago and surrounding counties pay an additional RTA grocery tax that continues regardless of the state tax elimination
Metro-East District (MED): St. Clair, Madison, and Monroe counties have a separate MED grocery tax that remains in effect

Sangamon County does not have these special district taxes, so Springfield residents only need to worry about the state elimination and potential local replacement tax.

What This Means for Springfield Grocery Stores and Retailers

Local grocers—including Hy-Vee, County Market, Walmart, Schnucks, Aldi, and independent markets—must update their systems for January 1, 2026:

Required Retailer Actions:

Update point-of-sale systems: Reprogram cash registers and computer systems to reflect new tax rules
Modify receipts: Show correct tax breakdown for grocery items
Change tax reporting: File Form ST-1 differently starting January 2026
Verify jurisdiction: Confirm whether each store location is in a municipality that adopted local grocery tax
Train staff: Ensure employees understand new rules for customer questions

Springfield-area stores with multiple locations must verify the tax status for each specific address, as adjacent municipalities may have different rules.

Timeline: Key Dates for the Illinois Grocery Tax Change

Date	Event
May 2024	Governor Pritzker signs Public Act 103-0781 eliminating state grocery tax
October 1, 2025	Deadline for municipalities to file ordinances for January 1, 2026 effective date
November 2025	Illinois Department of Revenue publishes updated tax rates for January 2026
December 31, 2024	Last day of 1% statewide grocery tax
January 1, 2026	State grocery tax eliminated; local grocery taxes take effect
April 1, 2026	Deadline for late ordinances to take effect July 1, 2026
July 1, 2026	Effective date for municipalities that filed ordinances between October 2025 - April 2026

How to Maximize Your Grocery Budget in 2026

Whether or not Springfield residents see tax savings, 2026 is a perfect time to optimize grocery spending:

1. Smart Shopping Strategies

Buy in bulk: Warehouse stores like Costco offer lower per-unit prices on non-perishables
Use store apps: Hy-Vee, Schnucks, and County Market offer digital coupons and rewards programs
Compare prices across stores: Springfield has multiple grocery options—shop around
Buy seasonal produce: Local farmers markets and seasonal items are often cheaper and fresher
Plan meals weekly: Reduce impulse purchases and food waste

2. Invest Your Potential Savings Wisely

If your Springfield community did NOT adopt the local grocery tax, you'll save $48-$180 annually. Consider using those savings strategically:

Emergency fund: Build a 3-6 month expense cushion
Debt payoff: Extra payments on credit cards or loans
Home improvements: Energy-efficient upgrades that reduce utility bills
Kitchen efficiency upgrades: Appliances that reduce food waste and prep time

3. Smart Kitchen Investments for Long-Term Savings

Regardless of tax savings, upgrading your kitchen efficiency can reduce overall food costs:

High-ROI Kitchen Appliances:

Instant Pot or Pressure Cooker ($99-$150): Reduces cooking time, lowers energy costs, makes cheap cuts of meat tender
Vacuum Sealer ($50-$100): Extends food freshness, enables bulk buying, prevents freezer burn
Air Fryer ($80-$200): Uses 70% less oil than deep frying, faster than conventional ovens
Food Processor ($100-$200): Makes cooking from scratch faster, reduces pre-packaged food purchases
Quality Knife Set ($60-$150): Speeds up meal prep, lasts decades with proper care

Smart Food Storage Solutions:

Glass Meal Prep Containers ($40-$80 for set): Portion control, reduce takeout temptation
Vacuum Storage Containers ($30-$60): Keep dry goods fresh 5x longer
Chest Freezer ($200-$400): Enables bulk meat purchases when on sale
Produce Storage Containers ($25-$50): Extend vegetable and fruit shelf life by weeks

These investments typically pay for themselves within 6-12 months through reduced food waste and enabling more cost-effective shopping habits.

Common Questions About the Illinois Grocery Tax Change

Will I pay less at Walmart or Target starting January 1?

Only if your specific municipality (like Springfield) did not adopt a local grocery tax ordinance. Check the official IDOR list or your January 1 receipt to confirm.

Does this affect restaurants or fast food?

No. Prepared food for immediate consumption was never taxed at the 1% grocery rate. Restaurant meals, carryout, and hot deli items remain taxed at the full general merchandise rate (8.25% in Springfield).

What about online grocery delivery from Instacart or Amazon Fresh?

The tax rate depends on your delivery address. If your Springfield address is in a jurisdiction that adopted the local grocery tax, you'll pay the 1% rate on eligible items. The delivery service should automatically calculate the correct rate based on your location.

Do I pay the grocery tax if I live in Springfield but shop in Chatham?

Sales tax is based on where you make the purchase, not where you live. If Chatham adopted a local grocery tax and Springfield didn't, you'd pay the tax in Chatham but not in Springfield (or vice versa).

Can I get a refund for grocery taxes I paid in 2024?

No. The state grocery tax was legal through December 31, 2024. The elimination only applies to purchases made on or after January 1, 2026.

Will other states follow Illinois in eliminating grocery taxes?

Thirteen states still impose some form of grocery tax: Alabama, Arkansas, Hawaii, Idaho, Illinois (now eliminated), Kansas, Mississippi, Missouri, Oklahoma, South Dakota, Tennessee, Utah, and Virginia. Tax policy varies widely, and some states are considering similar eliminations while others maintain the revenue for state budgets.

Can municipalities change their mind and remove the local tax later?

Yes. Just as municipalities could adopt the local grocery tax by ordinance, they can also repeal it through the same process. However, given the revenue importance, this seems unlikely in the short term.

How to Stay Informed About Tax Changes in Sangamon County

Springfield-area residents can monitor local tax developments through several channels:

Official Resources:

City of Springfield website: springfield.il.us
Sangamon County website: co.sangamon.il.us
Illinois Department of Revenue: tax.illinois.gov
Illinois Municipal League: iml.org/grocerytax

Local News Sources:

State Journal-Register: Springfield's primary newspaper covering local government
Illinois Times: Weekly newspaper with in-depth local coverage
WICS/WRSP (NewsChannel 20): Local ABC/Fox affiliate
WAND-TV: NBC affiliate serving central Illinois

Community Engagement:

City Council meetings: Public sessions where tax policy is discussed
Ward representatives: Contact your alderperson for specific questions
County Board meetings: For unincorporated areas of Sangamon County

The Bigger Picture: Illinois Tax Policy and Springfield Families

The grocery tax change reflects broader trends in Illinois tax policy:

Recent Illinois Tax Changes Affecting Springfield Residents:

2022: One-year suspension of grocery tax (saved families an estimated $360 million statewide)
2024: Gas tax temporarily frozen (motor fuel tax holiday)
2026: Permanent elimination of state grocery tax (with local replacement option)

The Local Control Debate

Public Act 103-0781 represents a shift toward local control of tax policy. Proponents argue municipalities know their communities' needs best. Critics suggest this creates a patchwork system where tax rates vary dramatically across neighboring towns.

For Springfield residents, this means paying closer attention to city council decisions, as local government now has more direct control over your grocery checkout total.

What Happens Next: Looking Ahead to 2026

As January 1, 2026 begins, Springfield-area residents should:

Week 1 (January 1-7):

Check your first grocery receipt for new tax rates
Verify whether Springfield or your municipali

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