In force 🚨 Action required Rate change

Illinois cuts its State sales tax rate to 1.25% for the 7–16 August 2026 back-to-school holiday

This page records one dated change. For the rules in United States as they stand today, see the United States guide →

Jurisdiction
🇺🇸 United States (Illinois)
Tax
Sales Tax
Change type
Rate change
Status
In force
Impact
Action required
Effective
7 August 2026
Instrument
US-IL-BULLETIN-FY2026-30
Authority
Illinois Department of Revenue
Systems
POS, E-commerce, Tax engine
Verified
Fetched from official source · high confidence
Who this affects

Retailers and marketplaces selling qualifying clothing, footwear (under USD 125 per item) and school supplies into Illinois.

What to do

Retailers selling into Illinois must apply the reduced 1.25% State rate to qualifying clothing, footwear under USD 125 per item and school supplies for 7-16 August 2026, then revert to 6.25%.

POSE-commerceTax engine

The change

The Illinois Department of Revenue's Informational Bulletin FY 2026-30 sets the 2026 back-to-school State sales tax holiday for 7 August through 16 August 2026. During the holiday the State's portion of sales tax on qualifying clothing and footwear priced under USD 125 per item and on school supplies is reduced from 6.25% to 1.25%.

What changed in detail

Illinois Department of Revenue Informational Bulletin FY 2026-30 sets the state’s 2026 back-to-school sales tax holiday for 7 through 16 August 2026. During the holiday, the State’s portion of sales tax on qualifying clothing and footwear priced under USD 125 per item, and on school supplies, is reduced from 6.25% to 1.25%. The USD 125 per-item cap applies to clothing and footwear only — qualifying school supplies carry no price cap. The rate reverts to 6.25% once the holiday ends on 16 August 2026.

What it means

This is a temporary, dated rate change, not a permanent cut. Retailers and marketplaces selling into Illinois need to apply 1.25% for exactly this ten-day window and revert immediately after — the holiday is live right now. It runs alongside, but is distinct from, Illinois’ own NITA rate change and Ohio’s separately dated sales tax holiday; keep the three apart when configuring rate tables.

Proof

The State's portion of sales tax due throughout the holiday is reduced by 5 percent (5.00%) from 6.25 percent (6.25%) to 1.25 percent (1.25%).
FY 2026-30, Back-to-School State Sales Tax Holiday August 7, 2026, through August 16, 2026 — Illinois Department of Revenue · captured 10 August 2026
Screenshot of Illinois Department of Revenue captured 10 August 2026, showing the quoted passage Source snapshot of the official page. Open full size ↗

Archived from the official distribution · Illinois DOR Informational Bulletin FY 2026-30 · tax.illinois.gov

Sources

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