Illinois offers temporary sales tax reduction on back-to-school shopping
[August 04, 2026]
By Ben Szalinski
Parents starting on back-to-school shopping will get a temporary sales
tax break for 10 days this month.
From Friday, Aug. 7, through Aug. 16 the state’s sales tax on school
supplies will be reduced from 6.25% to 1.25%. Items with a lower sales
tax will include traditional supplies such as markers and pencils,
notebooks and folders and other classroom items, as well as many
clothing purchases.
“Parents will keep more of their hard-earned dollars while students will
get what they need to start the school year off right,” Gov. JB Pritzker
said at an event in Palatine to highlight the initiative.
Clothing items, including shoes, that cost less than $125 will qualify
for a lower sales tax rate, while there will be no price limit on school
supplies. All purchases will still be subject to local sales taxes,
however.
The program costs the state $10 million, a minimal amount of the $55.9
billion budget.
Pritzker blamed President Donald Trump for rising inflation, saying his
policies have increased costs and made life harder for Illinois
families.
“We can’t control broader inflation in the economy, but there are some
things we can do to make life easier,” Pritzker said.
Launching into campaign mode with Election Day three months away,
Pritzker said the sales tax holiday is the latest example of how his
administration has tried to lower costs for Illinoisians. He pointed to
initiatives to raise the minimum wage, provide food benefits for people
who lost eligibility for federal support and forgive medical debt. He
also touted and legislation reforming insurance and banning hidden fees
as other ways he’s saved Illinoisians money.
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Gov. JB Pritzker participates in a news conference marking the
opening of a new youth sports park in Springfield in April 2026.
(Capitol News Illinois photo by Jerry Nowicki)
The sales tax holiday on school supplies is one of two tax relief
initiatives in the fiscal year 2027 budget. Lawmakers also suspended the
annual increase to the motor fuel tax until Jan. 1, which saves drivers
about 1 cent per gallon.
The budget also included hundreds of millions of dollars in new taxes,
mostly on businesses, as lawmakers increased spending by less than 1
percent.
The last time the state approved such a program was in 2022, the last
time Pritzker ran for reelection.
The sales tax holiday also comes days after the sales tax increased in
the Chicago area. The sales tax rose on Aug. 1 by a quarter point in
counties served by the Northern Illinois Transit Authority, which
includes Cook, Lake, McHenry, DuPage, Kane and Will counties.
State lawmakers approved the tax increase last year to help fund public
transportation and stave off massive funding shortfall this year and
significant service cuts.
Capitol News Illinois is
a nonprofit, nonpartisan news service that distributes state government
coverage to hundreds of news outlets statewide. It is funded primarily
by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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