Illinois’s 2026 back-to-school holiday reduces the state portion of sales tax by five percentage points—from 6.25% to 1.25%—on qualifying items. Local taxes can still apply, so this is not a completely tax-free period.
What qualifies
- Clothing and footwear: Less than $125 per item
- Qualifying school supplies: No $125 item cap
Do online purchases count?
Qualifying paid-in-full orders can receive the reduced state rate under Illinois’s order and back-order rules. Local tax and sourcing rules remain relevant.
State and local tax treatment
Only the state portion is reduced by 5 percentage points. Applicable local sales taxes continue unless another rule applies.
Important limitation
This is a reduced-rate holiday, not a full exemption. The checkout rate should equal the normal combined rate minus five percentage points on eligible items.
Primary source: Illinois Department of Revenue — Informational Bulletin FY 2026-30. Source checked July 13, 2026.