Illinois' grocery tax will end by 2026; One official says it'll cost her suburb $2M per year

Illinois capitol
Photo credit Getty Images

(WBBM NEWSRADIO) — Gov. J.B. Pritzker on Monday signed a bill into law that will eliminate the state’s 1% tax on groceries.

The tax cut is set to take effect on Jan. 1, 2026. Its supporters say it’s an effort to ease financial burdens on Illinois families. Some local leaders, though, such as Algonquin Village President Debby Sosine, said the burden has become theirs.

“The loss of sales tax is approximately $2 million per year, straight out of our budget,” Sosine told WBBM.

Sosine said that money goes toward the village’s police department, public works, administration, roads, parks and natural areas.

Local governments will have the option to pass an ordinance that would impose the grocery tax on a local basis. Sosine said there’s been talk of passing such a measure in Algonquin but described those discussions as “nothing concrete.”

Sosine said she’s thankful to the governor for giving municipalities time to work out their next move.

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Featured Image Photo Credit: Getty Images