High sales taxes suck a little joy out of Illinois holidays
Illinois sales taxes on holiday purchases rank No. 8 in the U.S., but Chicago charges shoppers as much as 10.25% with plans to go higher.
Whether making their purchases in a store or online, Illinois holiday shoppers pay some of the highest sales taxes in the nation.
Illinois averages 8.92% in sales taxes statewide, slightly higher than last year and the eighth highest nationwide. It is worse in some communities, with Chicago charging a 10.25% sales tax rate.
The National Retail Federation projects holiday spending in the U.S. will top $1 trillion in November and December 2025, setting a new holiday record. Strong consumer spending is a sign of a healthy economy, but stronger spending can also reflect the impact of rising prices.
Accenture’s 19th Annual Holiday Shoppers Survey suggests the higher spending trend may be more reflective of higher prices than of growing consumer enthusiasm. Higher prices are bound to drive up holiday budgets as consumers pay more for items on their lists, but these items are made even more expensive by the sales taxes assessed on the inflated prices.
Chicago shoppers currently pay a 10.25% sales tax on all their purchases, both in store and online. Chicago’s sales tax is the second highest of any major city in the nation and it’s expected to go even higher in the New Year – to 10.5%, making it the highest sales tax in the nation.
State lawmakers agreed to let the Regional Transportation Authority increase the sales tax by 0.25% as part of a deal to finance a transit bailout. If approved, the tax in 2026 will apply to six counties: Cook, Lake, McHenry, Kane, DuPage and Will – home to about two-thirds of the state’s population.
Illinoisans are tired of politicians taxing their way to record spending, with a recent poll ranking high taxes as voters’ No. 1 concern. Instead of coming up with new ways to impose taxes that burden consumers and discourage business activity, Illinois policymakers should control their spending spree.