07/22/2026
Illinois has brought back its Back-to-School Sales Tax Holiday. Among its provisions: a 10-day back-to-school sales tax holiday running August 7 through August 16, 2026.
During that period, qualifying clothing and footwear priced less than $125 are subject to a reduced state sales tax rate of 1.25% β instead of the normal 6.25%.
Here's everything Illinois shoppers and retailers need to know before August 7.
The holiday doesn't just cover clothing and footwear. From August 7 through August 16, 2026, a reduced tax rate of 1.25% applies to clothing with a retail seller price of less than $125 β and also to school supplies, school art supplies, instructional materials, and computer supplies.
Breaking that down:
Clothing and footwear β under $125 per item:
Shirts, jeans, dresses, shoes, boots, jackets, coats, uniforms, and similar everyday clothing items. The $125 threshold applies per item.
School supplies:
The standard back-to-school lineup β notebooks, folders, pencils, pens, scissors, calculators, rulers, and similar supplies used for school.
School art supplies:
Paints, brushes, sketchbooks, colored pencils, and similar materials used for art classes.
Instructional materials:
Textbooks, workbooks, reference books, and similar materials used for learning.
Computer supplies:
Items used with computers β mice, keyboards, USB drives, printer paper, and similar accessories.
What "Reduced Rate" Means β Not Tax-Free
This is the most important distinction Illinois shoppers and retailers need to understand.
Illinois's holiday is not a tax-free period. It's a reduced-rate period.
Qualifying items are subject to a reduced rate of state sales tax of 1.25% instead of the normal 6.25%.
The 5% reduction in state rate translates to savings β but it's not zero. On a $100 purchase, Illinois shoppers pay $1.25 in state tax instead of $6.25. That's $5 in savings per $100 spent.
And local taxes still apply on top of the reduced state rate. The holiday reduces the state portion from 6.25% to 1.25% β but the local layer stays at whatever rate applies to the delivery address.
Hopefully, you can all find some bargains as you prepare for the new school year!
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