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Sam Bennett

Sam Bennett

1 Jul 2023

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Illinois Grocery Tax Returns and Gas Tax Rises for Second Time This Year

Illinois residents will start paying a 1% state tax on groceries again as a temporary tax break comes to an end. The Illinois Grocery Tax break was introduced last year amid soaring inflation and high gas prices.

Governor J.B. Pritzker explains that the temporary measure was implemented due to high inflation but that inflation has since decreased.

In addition to the return of the grocery tax. Illinois residents will experience a second increase in the gas tax this year. The gas tax was initially set to rise in July 2022 but was frozen until the end of 2022.

On New Year’s Day, the tax increased by 3.1 cents per gallon, and now, on July 1, it will rise by another 3.1 cents, bringing the total to 45.3 cents per gallon.

Republicans have criticized the tax relief measures as election-year tactics. They argue that if Democrats truly wanted to help taxpayers.

They would have made the suspension of the grocery tax permanent. Some also suggest relief on the separate state sales tax for gas would have been more impactful for consumers.

You may also like: Taxes for the Self-Employed

Illinois Grocery Tax Impact on Consumers and Public Opinion

Illinois Grocery Tax

Opinions among Illinois residents vary regarding the return of the Illinois Grocery Tax and the gas tax increase. Some shoppers feel the effects of the grocery tax relief were negligible, given the high prices of groceries.

Others express concerns about the overall tax burden on Illinois residents. Gas station owners aim to balance the price increase by staying competitive and minimizing the impact on customers.

Illinois residents will see changes in their tax burden as the state’s grocery tax returns and the gas tax rises for the second time this year.

While the temporary tax breaks provided relief amid inflation and high gas prices, the return of the grocery tax and the gas tax increase have sparked criticism and mixed reactions among consumers. The impact of these changes on the overall cost of living in Illinois remains a topic of discussion.

Illinois Grocery Tax Returns and Gas Tax Rises for Second Time This Year