Governor JB Pritzker has signed into law HB3144, a significant piece of legislation that will eliminate the 1% state tax on grocery items in Illinois. This tax cut, set to take effect on January 1, 2026, aims to ease the financial burden on Illinois families by reducing the cost of grocery shopping. Although the state tax is removed, local governments retain the option to impose this tax through local ordinances if they see fit.
This move is part of Governor Pritzker’s broader initiative to provide tax relief and improve affordability for residents. The Governor has emphasized the importance of such measures in light of recent inflationary pressures and the rising cost of living. Previously, Pritzker’s administration took steps including suspending the state grocery tax during the 2022 fiscal year, offering property tax rebates, and providing direct payments to Illinois filers.
HB3144 also introduces changes to other municipal tax regulations, such as updating prepaid wireless surcharges and the Hotel Operators’ Occupation Tax. By addressing various tax issues, the bill continues Pritzker’s commitment to reducing financial strains on Illinoisans and supporting working families.
