2 Illinois cities passed local grocery taxes. Is your town next?

Illinois towns have started passing local grocery taxes that will take affect once the state grocery tax phases out in 2026. Will your town be next?

Now that state lawmakers have agreed to repeal Illinois’ 1% grocery tax, individual towns have started to pass local grocery taxes.

Martinsville and Central City were the first to do so. Martinsville, with a population of 1,077, was the first one to put a plan in place for a local grocery tax. Their city council voted 3-2 with one council member absent to replace the 1% state grocery tax with the same tax at the local level.

Central City in Marion County followed with their own grocery tax. When Illinois phases out its 1% grocery tax in 2026, all local governments have the ability to bring it right back.

Communities will see no savings should their local leaders choose to add an equal grocery tax. Illinoisans statewide saved $360 million when the grocery tax was suspended for 12 months.

There are 37 states that don’t tax groceries. Illinois is the only one of the 10 most populous with a grocery tax. Local governments in those states get by just fine.