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.

Illinois lawmakers are looking to expand sales taxes to include things such as streaming services, gym memberships, vehicle repairs, hair care and other services to bail out Chicago’s failing transit systems and put more money in government budgets.

Illinois lawmakers are looking at a bill that would cut sales taxes during back-to-school shopping. Illinois hasn’t had a sales tax holiday in years. The bill would lower the state sales tax from 6.25% to 1.25% on clothes and school supplies for six days in August 2025.

Illinois’ combined state and average local sales tax is the seventh highest in the nation. It is the highest among the most populous states.

A cap on the retailers’ sales tax credit will effectively hikes taxes on Illinois retailers by $186 million. Retailers are already facing razor-thin margins, but the record $53.1 billion state budget required $1.1 billion in new taxes.

Illinoisans shopping for Valentine’s Day will pay the highest sales tax in the Midwest and eighth-highest in the nation.

Surging gasoline prices mean Illinois is getting a boost in sales taxes from fuel, but that’s because drivers are paying the extra $200 a year. Most states don’t charge sales tax on gasoline, but Illinois adds it atop other taxes – taxing the taxes.