Parents starting on back-to-school shopping will get a temporary sales tax break for 10 days this month.
From Friday, Aug. 7, through Sunday, Aug. 16 the state’s sales tax on school supplies will be reduced from 6.25% to 1.25%. Items with a lower sales tax will include traditional supplies such as markers and pencils, notebooks and folders and other classroom items, as well as many clothing purchases.
“Parents will keep more of their hard-earned dollars while students will get what they need to start the school year off right,” Gov. JB Pritzker said at an event in Palatine to highlight the initiative.
Clothing items, including shoes, that cost less than $125 will qualify for a lower sales tax rate, while there will be no price limit on school supplies. All purchases will still be subject to local sales taxes, however.
The program costs the state $10 million, a minimal amount of the $55.9 billion budget.
Pritzker blamed President Donald Trump for rising inflation, saying his policies have increased costs and made life harder for Illinois families.
“We can’t control broader inflation in the economy, but there are some things we can do to make life easier,” Pritzker said.
Launching into campaign mode with Election Day three months away, Pritzker said the sales tax holiday is the latest example of how his administration has tried to lower costs for Illinoisians. He pointed to initiatives to raise the minimum wage, provide food benefits for people who lost eligibility for federal support and forgive medical debt. He also touted and legislation reforming insurance and banning hidden fees as other ways he’s saved Illinoisians money.
The sales tax holiday on school supplies is one of two tax relief initiatives in the fiscal year 2027 budget. Lawmakers also suspended the annual increase to the motor fuel tax until Jan. 1, which saves drivers about 1 cent per gallon.
The budget also included hundreds of millions of dollars in new taxes, mostly on businesses, as lawmakers increased spending by less than 1 percent.
The last time the state approved such a program was in 2022, the last time Pritzker ran for reelection.
The sales tax holiday also comes days after the sales tax increased in the Chicago area. The sales tax rose on Aug. 1 by a quarter point in counties served by the Northern Illinois Transit Authority, which includes Cook, Lake, McHenry, DuPage, Kane and Will counties.
State lawmakers approved the tax increase last year to help fund public transportation and stave off massive funding shortfall this year and significant service cuts.