On August 5, 2024, Democratic Illinois Governor J.B. Pritzker signed HB3144 into law, effectively eliminating the state’s grocery tax. This decision, part of the local government tax omnibus bill, was a key component of Pritzker’s 2025 budget plan, which gained approval from the Illinois General Assembly in June. The 1% tax cut will take effect on January 1, 2026. While local governments can still impose their own taxes if they choose, this state-level repeal marks significant progress for consumers.

Prior to this legislation, Illinois residents faced one of the few remaining grocery taxes in the nation; it was one of only 11 states still taxing groceries. The governor highlighted the necessity of this tax cut, stating, “Even with inflation cooling off, every dollar counts.” This reflects widespread economic pressures where households are increasingly budget-conscious.

Illinois previously suspended the grocery tax for the 2022 fiscal year amid unprecedented inflation, only to reinstate it on July 1, 2023. The new law aims to alleviate the burdens placed on families during challenging economic times.

In addition to repealing the grocery tax, the state government has introduced the Illinois Grocery Initiative, aimed at combating food deserts. This initiative provides grants to businesses establishing grocery stores in underserved areas, with funding ranging from $160,000 to $2.4 million. These measures not only enhance consumer access but also stimulate economic development in struggling neighborhoods.

Pritzker’s administration is committed to improving the grocery landscape in Illinois, demonstrating its focus on addressing both immediate consumer needs and long-term economic sustainability.