Illinois Department of Revenue                 FY 2022-23
                                                                                             May 2022

                                              nformational
                                             i

                                              Bulletin
David Harris, Director

                                              Grocery Tax Suspension 

                                              from July 1, 2022, through 
This bulletin is written to inform you 
of recent changes; it does not replace        June 30, 2023 
statutes, rules and regulations, or 
court decisions.                              To: All Retailers Registered in Illinois

                                              Public Act (P.A.) 102-0700 suspends the state 1 percent (1%) low rate of 
                                              sales and use tax on retail sales of groceries normally taxed at this rate 
For information                               from July 1, 2022, through June 30, 2023. 
Visit our website at:
tax.illinois.gov                              How does the 1 percent (1%) grocery tax 
                                              suspension work?
Call us at:
1 800 732-8866 or                                  July 1, 2022, through June 30, 2023, the state of Illinois sales 
                                              From 
217 782-3336                                  and use tax on groceries normally taxed at the 1 percent (1%) low rate 
                                              will be 0 percent (0%). Groceries taxed at the low rate include food for 
Call our TDD                                  human consumption that is to be consumed off the premises where it is 
(telecommunications device
for the deaf) at:                             sold (other than alcoholic beverages, food consisting of or infused with 
1 800 544-5304                                adult use cannabis, soft drinks, candy, and food that has been prepared 
                                              for immediate consumption). See 86 Ill. Admin. Code Section 130.310 
Email us at:
                                              for more information on grocery items that are taxed at the low rate. 
REV.TA-Sales@illinois.gov
                                                For example:
                                               Groceries normally taxed at the 1% low rate:
                                                Retail sale of groceries subject to 1% tax:  $145.29
                                                Tax at 1%:                                       $1.45
                                               Total:                                        $146.74
                                                During the 1% grocery tax suspension:
                                                Retail sale of groceries subject to 1% tax:  $145.29
                                                Tax at 0%:                                               
                                               Total:                                        $145.29
                                              Note: The Regional Transportation Authority and Metro-East Mass 
                                              Transit District impose an additional local tax on grocery food that is not 
                                              suspended under P.A. 102-0700. 
Printed by authority of the state of Illinois
FY 2022-23 (N-05/22) Web only, One copy                                                      Continued on Page 2 

Informational Bulletin - Grocery Tax Suspension                                FY 2022-23

Are there any sales and use tax notification requirements for retailers?
Retailers, to the extent feasible, shall include the following statement on any cash register tape, receipt, invoice, 
or sales ticket issued to customers: “From July 1, 2022, through June 30, 2023, the State of Illinois sales tax on 
groceries is 0%.” If it is not feasible for the retailer to include the statement on any cash register tape, receipt, 
invoice, or sales ticket issued to customers, then the retailer shall post the statement on a sign that is clearly 
visible to customers. The sign shall be no smaller than 4 inches by 8 inches. A printable sign will be available on 
our website at tax.illinois.gov.

If an item qualifies as a drug or medicine is the tax suspended? 
No. Tax will continue to be imposed on items that meet the definition of a qualifying medicine or drug. See 
86 Ill. Admin. Code Section 130.311 for more information. 

How do I report these sales?
The Illinois Department of Revenue has created Schedule GT, Sales and Use Tax Holiday and Grocery Tax 
Suspension Schedule, for retailers to report sales of groceries during the tax suspension period. This schedule 
should be filed with your Form ST-1, Sales and Use Tax and E911 Surcharge Return (and, when applicable, 
Form ST-2, Multiple Site Form). Form ST-1 has not changed. Retailers should continue to report their normal 
taxable sales, including receipts from sales of groceries, on Lines 5a and 5b, Lines 7a and 7b, or Lines 13a 
and 13b, of Form ST-1 (and, when applicable, Form ST-2) and will then use Lines 6a and 6b, Lines 7a and 7b, 
or Lines 8a and 8b on Schedule GT to calculate a credit against the tax reported on those lines for the tax they 
are not collecting on sales of grocery items. When determining the discount allowed for a timely filed return, 
retailers are authorized to include the amount of tax on receipts that would have been due at the 1 percent 
(1%) rate.

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