Illinois’ back-to-school sales tax break provides relief for 10 days

Illinois’ back-to-school sales tax break provides relief for 10 days

The state will slash its sales tax for 10 days this month.

Illinois will slash its state sales tax on certain school supplies, clothing and shoes from Aug. 7 through Aug. 16.

During that time, the state sales tax will drop to 1.25% from the usual 6.25%.

The sales tax holiday is welcome relief for families that usually pay some of the highest sales taxes in the country.

Despite the state sales tax relief, shoppers will pay local sales taxes, and those in the Chicago area are subject to a just-increased sales tax for the Regional Transportation Authority (which will be replaced Sept. 1 by the Northern Illinois Transit Authority).

During the 355 days of the year with no back-to-school sales tax holiday, city of Chicago shoppers pay 10.5% sales tax, among the highest in the country. Here is a breakdown of the tax for a Chicago shopper during the back-to-school holiday:

  • 1.25% state sales tax
  • 1.75% Cook County sales tax
  • 1.25% city of Chicago sales tax
  • 1.25% Regional Transportation Authority sales tax

Illinois residents pay the highest combined state and local tax rate in the country and the highest property taxes. A 10-day tax holiday does not offer families the consistent relief they are asking for, as they cite high taxes as one of their top concerns.

An effort to reduce back-to-school costs deserves recognition, but Illinois families need structural tax reform that makes the state more affordable throughout the year.

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