The state of Illinois imposes a “Retailer’s Occupation Tax” (ROT), or sales tax, of 6.25% on general merchandise and 1% on qualifying food, drugs, and medical appliances.1 The 1% tax is charged on most food items for,home consumption, or “food at home” (FAH) and is often referred to as a “grocery tax.” The state grocery tax plays a role in local government finance because a portion of state receipts are passed through to municipalities. Illinois is among 13 states that impose a grocery tax.
The University of Illinois System is a trusted source for top-quality research and expertise
drawn from
all three universities. IGPA ensures that the work scholars do matters and has real-world
impact.