Gov. Pritzker signs bill eliminating state grocery tax

SPRINGFIELD, Ill. (WAND) - The 1% tax on groceries in Illinois will be repealed on January 1, 2026 thanks to a plan signed into law Monday.

Gov. JB Pritzker said this change is one more important part of lifting the burden on Illinois families.

However, local governments will have the option to impose a grocery tax by ordinance to make up their lost revenue.

"We intend to eliminate the grocery tax while also providing historic support for all of our local governments across the state, giving them the tools for appropriate property tax relief," said Rep. Jehan Gordon Booth (D-Peoria).

Democrats argued this is a major win for consumers, but Republicans stressed that people will still be taxed for groceries regardless.

"Illinois continues to tax and spend and increase fees on our residents and on our businesses," said Rep. Dan Caulkins (R-Decatur). "That makes us less competitive with the states around us."

The new law also allows the Sangamon County Board to impose up to a 3% tax for hotels. Revenue from the new hotel tax could be used to promote tourism, competitiveness and job growth in Sangamon County.