Highland could be first Illinois city to add a local grocery tax

Illinois’ statewide grocery tax is on its way out, but your local government may add its own. Highland, Illinois, could be the first to do so.

Illinois is ending its 1% grocery tax, but your town or city can bring it right back. Eliminating the grocery tax means less revenue for local governments, not the state, but it also means a bigger burden on low-income families.

Highland, Illinois, could be the first to impose a grocery tax at the local level. The city estimates it will lose anywhere from $330,000 to $350,000 without a grocery tax. It must choose between cutting its budget or reimposing the local 1% tax on groceries when the statewide tax ends Jan. 1, 2026.

City leaders at the next council meeting Sept. 3 will discuss an ordinance to collect the grocery tax. The ordinance wouldn’t be put to a vote until a later meeting.

Groceries for a family of four on what the federal government considers a “low-budget meal plan” were about $858 a month in January 2020. Inflation has pushed that number to $1,064 as of May 2024. That is an annual hike of $2,473 more in a four-year period when that same shopping list only rose $1,164 a year between 2010 and 2020.

Gov. J.B. Pritzker’s budget means Illinois will join 37 other states that don’t tax groceries. Illinois was the only state among the 10 most populated with a grocery tax.

One other Illinois community is considering a grocery tax. River Forest is exploring adding the tax worth $1 million a year while neighboring Oak Park has no plans to replace it despite facing a $1 million drop in revenue.

If you think Highland should give up the grocery tax permanently, contact the city council directly using the form below. Your email will be delivered directly to the city council members and Mayor Kevin Hemann.