Illinois Suspends Grocery Tax, Delays July 1 Gas Tax Increase; Property tax relief: what you need to know

Some big changes will go into effect Friday in Illinois to ease the financial burden on the state’s residents.

The Illinois Family Relief Plan suspend the grocery tax and delay the gas tax increase. It will also provide relief to residents on their property taxes and to parents buying school supplies for their children.

“We’re sending $1.8 billion in tax relief to Illinois families — and we’re doing it because Democrats have balanced the budget, cleared the bill backlog, and the state government is now seeing a surplus,” Governor JB Pritzker said in a statement.

The initiative is part of Governor Pritzker’s plan to combat record inflation.


“Amid historic inflation rates, the people of our state deserve to know they are not alone. We are with them,” said Lt. Governor Juliana Stratton.

Grocery shoppers won’t have to pay the state’s 1% sales tax until June 30, 2023. Illinois’ planned gasoline tax hike, which was to take effect Friday , will be suspended until January 2023 – a ruling Pritzker says will save Illinois drivers $70 million.

Back-to-school shoppers can save 5% on state sales tax if they buy school supplies between Aug. 5 and Aug. 14 — and some households will be eligible for property tax refunds of up to $300.

“If you’re a working family, you’re going to benefit from all of this effort,” Rep. Will Davis (D-30e) said. “We know times are tough. Shopping is going up. Gas is going up. Everything is more expensive these days.”

Pritzker says the one-year food tax suspension will save Illinois $400 million and that any household with a combined income of less than $500,000 will receive a property tax refund of at least $400 million. minus $50.

“Starting tomorrow, every Illinoisan will get tax relief on the essentials: gas, groceries and your home,” Pritzker said.

Despite the temporary relief, Pritzker doubled Illinois’ gasoline tax in 2019 — from 19 to 38 cents per gallon — and incorporated annual hikes that automatically trigger each year. While this year’s gas tax hike is delayed, it also means there will be two gas tax hikes in 2023.

Here’s what Illinois people need to know before tomorrow:

  • Races: The 1% state sales tax on groceries will be suspended from July 1 through June 30, 2023.
  • Gas: The increase normally planned by the State of the fuel tax will be postponed from July 1 to January 2023.
  • School supplies: Sales taxes on qualifying clothing and school supplies will be reduced from 6.25% to 1.25% for a 10-day period from August 5 to 14, saving consumers $50 million. Items include qualifying apparel and footwear with a retail price of less than $125 per item. Eligible school supplies are not subject to the $125 threshold.

Additionally, eligible Illinois homeowners will receive property tax refunds of the same amount of their property tax credit they were entitled to on their 2021 tax returns – up to a maximum of $300.

“Refund is not permitted if a taxpayer’s adjusted gross income for the tax year exceeds $500,000 for returns with joint filing federal filing status, or $250,000 for all other returns “, according to state information.

Those who earned less than $200,000 in 2021 will receive $50 income tax refunds, and couples who filed jointly with incomes below $400,000 will receive $100.

“Filers will also receive $100 per dependent they claimed on their 2021 taxes, up to three dependents,” the state said. “Income and property tax refunds will be automatically granted to all of the estimated 6.2 million taxpayers who are eligible under the family support plan based on information included in their tax returns. 2021 income submitted.”

Illinois will begin distributing the rebates on September 12, and it will take about eight weeks for eligible people to receive them.

Those who have not filed their 2021 tax return but still want to claim the refunds can do so HERE.

Refunds will be received by residents in the same manner as they received their tax returns; ex: direct deposit, checks, etc.

For more information or assistance, visit HERE – or call 800-732-8866 or 217-782-3336.

Penny D. Jackson