Illinois tax holiday savings depend on how much a family spends on qualifying products from August 7-16, 2026. The state rate falls by five percentage points, producing savings of $5 per $100. Clothing and footwear must cost under $125 per item, while eligible school supplies have no price cap.
Families save $5 for every $100
For the full schedule, reduced tax rate and shopping rules, read our complete Illinois tax holiday 2026 guide.
The Illinois back-to-school sales tax holiday runs from Friday, August 7, through Sunday, August 16, 2026. During those 10 days, the state sales tax portion on qualifying purchases falls from 6.25% to 1.25%.
That five-percentage-point reduction saves shoppers $5 for every $100 spent on eligible products. Local sales taxes remain in effect, so purchases are not completely tax-free.
Savings depend on the eligible subtotal
Check Which Purchases Qualify
A family’s total savings depend on how much of its shopping cart qualifies for the reduced state tax rate. Review the complete Illinois tax holiday eligible and excluded items checklist before calculating your potential savings .
A family spending $200 entirely on qualifying clothing, footwear and school supplies would save $10. An eligible subtotal of $400 would produce $20 in savings, while $600 would reduce the tax bill by $30.
The reduction applies only to qualifying merchandise. If a $500 shopping cart contains $350 in eligible products and $150 in computers, textbooks or other excluded items, the state-rate savings would be $17.50 rather than $25.
Clothing price limits affect the total
Clothing and footwear must retail for less than $125 per item. A pair of shoes priced at $90 can qualify, but an individual jacket priced at $130 cannot.
The limit applies separately to each eligible item, not to the complete transaction. A family could therefore buy several qualifying shirts, shoes or uniforms with a combined price above $125 and still receive the reduced rate.
School supplies can increase savings
Families can also compare Illinois with other programs in our 2026 back-to-school tax holidays by state guide, including dates, spending limits and eligible products.
Qualifying school supplies have no price cap, provided students use them in the course of study. Products such as notebooks, calculators, pencils, binders, folders, markers and bookbags can contribute to the eligible subtotal.
For example, two $80 jackets, two $70 pairs of shoes and $200 in qualifying school supplies would create a $500 eligible subtotal. The five-point reduction would save the household $25.
Discounts may help an item qualify
Retailer discounts and certain coupons can lower an apparel item below the $125 threshold. However, stores cannot divide a product normally sold as one unit, such as a pair of shoes, to make it eligible.
Families can estimate their savings by multiplying the eligible subtotal by 5%. Checking product eligibility and comparing regular prices remain important because a tax reduction may not make a higher-priced item the least expensive option.
Shoppers living near state borders can compare the Illinois tax holiday with Iowa, Missouri and neighboring states in 2026 before deciding where to shop.
