Sales tax deduction in Illinois
Varies
Is Sales Tax Deductible in Illinois?
Short answer: Only instead of income tax: itemizers in Illinois pick sales tax (6.25% state rate, about 8.98% with local taxes) or state income tax, whichever is bigger. The 1% state tax on groceries ended Jan. 1, 2026, but cities and counties may impose their own 1% grocery tax, and existing RTA and Metro-East transit grocery taxes remain.
Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Sales tax deduction in Illinois
Varies
Individuals / Personal Taxes
Only instead of income tax: itemizers in Illinois pick sales tax (6.25% state rate, about 8.98% with local taxes) or state income tax, whichever is bigger. The 1% state tax on groceries ended Jan. 1, 2026, but cities and counties may impose their own 1% grocery tax, and existing RTA and Metro-East transit grocery taxes remain.
Business justification
Only instead of income tax: itemizers in Illinois pick sales tax (6.25% state rate, about 8.98% with local taxes) or state income tax, whichever is bigger. The 1% state tax on groceries ended Jan. 1, 2026, but cities and counties may impose their own 1% grocery tax, and existing RTA and Metro-East transit grocery taxes remain. Use the IRS Sales Tax Deduction Calculator or your receipts, add sales tax paid on a car, boat, or home-building materials, and stay within the $40,400 SALT cap (Schedule A line 5a).
Category
- Personal Tax Deductions