Illinois Sales Tax on Food and Meals Illinois: Sales Tax Handbook


Are Food and Meals subject to sales tax?

While Illinois' sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of food and meals in Illinois, including catering and grocery food. To learn more, see a full list of taxable and tax-exempt items in Illinois.

In the state of Illinois, any gratuities that are distributed to employees are not considered to be taxable.

Grocery Food
In the state of Illinois, food is taxed at a reduced rate of 1%. However, all candy, soft drinks, alcoholic beverages, and food which was prepared and intended for immediate consumption are not qualified for the 1% rate.

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