SPRINGFIELD — The Illinois Municipal League (IML) announced Monday that 656 municipalities across Illinois – more than half of all municipalities in the state – have adopted an ordinance establishing a 1% local grocery sales tax to replace the statewide grocery tax when it expires on January 1, 2026. The statewide 1% grocery sales tax, a critical revenue source for essential local government services, was repealed as part of the State Fiscal Year 2025 budget. Without this funding, many communities would face significant budget shortfalls affecting essential services such as public safety, public utilities and infrastructure maintenance and repair. To address these challenges, IML successfully advocated for legislation granting both home rule and non-home rule municipalities local authority to implement a 1% local grocery sales tax by ordinance. “Sales tax revenues – for general merchandise or groceries, alike – are a cornerstone of many local budgets across Illinois, which is why 50.7% of municipalities took action to preserve this funding,” said IML Chief Executive Officer Brad Cole. October 1, 2025, marked the deadline for municipalities to have passed an ordinance and file it with the Illinois Department of Revenue (IDOR) to ensure it takes effect January 1, 2026, preventing any loss of revenue when the statewide tax ends. IML maintains an up-to-date list (available via this link) of the Illinois municipalities that have adopted these ordinances. Municipalities considering adoption of a local grocery sales tax can still do so going forward, by submitting a certified copy of an ordinance to IDOR, postmarked by April 1 for July 1 implementation or by October 1 for January 1 implementation. IML encourages communities to adopt the tax promptly, even if they do not currently have a local grocery store, to prevent further revenue losses. A model ordinance, along with additional information and resources, is available at iml.org/grocerytax. About the Illinois Municipal League The Illinois Municipal League is the statewide association representing municipalities throughout Illinois. IML has worked continuously for the benefit of all 1,294 cities, villages and towns in Illinois to provide a formal voice on matters involving common interests. The League is managed under the general direction of Chief Executive Officer Brad Cole, former Mayor of the City of Carbondale. | 