Grocery Tax Repeal 2026: What It Means for Families in Northern Illinois

On January 1, 2026, the 1% grocery tax will be eliminated officially in Illinois, but many cities, villages, and towns throughout the state are opting to keep it in place. Here's why.

Illinois Grocery Prices

I think I can speak for everyone in Illinois when I say that it is painful to go grocery shopping these days. It has always been a task I dread doing, but the prices for groceries these days makes it even more miserable.

Back in August of 2024, Illinois Governor J.B. Pritzker signed a law eliminating the state's 1% grocery tax starting in 2026, with the hopes it would lift some of the financial burden for residents.

READ MORE: What IL Families Need To Know About NICOR Rate Increase

On paper, eliminating a tax may sound like a win, but in reality it won't make much difference.  That is why many towns, cities, and villages in the Stateline area have opted to keep the grocery tax in place.

Illinois Communities Keeping the Grocery Tax

When Governor Pritzker signed the law eliminating Illinois’ statewide grocery tax (effective Jan. 1, 2026), it did leave the final decision up to individual communities, and many communities throughout Northern Illinois have voted to keep it.

Rockford Alderman Kevin Frost told mystateline.com:

The governor basically took it away from us and I think it’s valid to have it. One of the reasons why is because I don’t want to see an increase in property taxes.

Revenue received from the 1% grocery tax helps fund vital necessities like public safety, street maintenance, utilities, parks, and other community services. Eliminating it would force local governments to make tough choices.

Here's a list of communities throughout Illinois that have opted to keep the 1% grocery tax in place

• Rockford
• Loves Park
• Machesney Park
• Rockton
• South Beloit
• Durand
• Pecatonica
• Stillman Valley
• Winnebago
• Capron
• Byron
• Oregon
• Dixon
• Freeport
• DeKalb

If you're bummed that the grocery tax is staying put where you live, just think about it this way: you'd basically only be saving $1 per  $100 spent on groceries if the tax was eliminated, which is pretty unimpressive.