CHICAGO — While the state of Illinois plans to end its 1% grocery tax by 2026, more than 209 local governments — and possibly Chicago next — are moving to lock in the tax at the local level, effectively canceling the planned relief for their residents.
According to Illinois Policy Institute, dozens of municipalities have already notified the state of their intent to keep taxing groceries, citing budget concerns. These include communities both large and small — and Chicago’s leadership is now signaling the city may follow suit.
“Chicago must reaffirm the grocery tax before the state’s deadline of Oct. 1,” said Annette Guzman, Mayor Brandon Johnson’s top budget official, in a City Council briefing.
Grocery Tax: Relief Or Revenue?
The grocery tax in Illinois has long been criticized as regressive, disproportionately impacting low-income households. During the temporary suspension in 2022, shoppers across the state saved $300 million.
Gov. J.B. Pritzker, who supported the repeal at the state level, acknowledged it unfairly burdens poorer residents. However, the legislation he signed allows local governments to keep or reinstate the tax on their own, without needing voter approval.
Chicago’s Poverty Rate Is Well Above National Average
Chicago’s poverty rate is nearly 17%, compared to the national average of 11%, according to U.S. Census data. Opponents of the grocery tax argue that keeping the tax in Chicago would prevent working families from sharing in the savings other Illinois residents will receive when the state repeal takes effect.
Mayor Johnson has defended the possible continuation, noting that since the 1% tax is already in place, residents may not feel a difference — but critics say not feeling relief is the problem.
Some Towns Let Voters Decide — Others Don’t
In Bensenville, officials held an advisory referendum to gauge public opinion on the grocery tax. The result? 90% of voters rejected the tax.
Still, the law allows towns to skip public votes altogether and opt to keep the grocery tax without consent from residents. That’s sparked concern among civic watchdogs.
A 2023 poll by Illinois Policy found that over 70% of Illinois voters wanted the grocery tax permanently eliminated.
Deadline Approaches — Will Chicago Move Forward?
Municipalities have until October 1, 2025, to inform the state whether they intend to continue the grocery tax beyond the repeal date.
With rising food prices and budget pressures, the decision is becoming a litmus test for local fiscal priorities. Critics argue that cities should seek alternative budget solutions rather than taxing essential goods.
Should Groceries Be Taxed In Chicago?
Do you think Chicago should follow the state and let the grocery tax expire? Or does the city need this revenue to stay afloat? Share your thoughts now on ChicagoSuburbanFamily.com.
