Illinois’ ‘back-to-school sales tax holiday’ will return for 2026, but this one will be different

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A popular, week-long "back-to-school sales tax holiday" will return to Illinois this summer as part of the state’s newly passed $55.9 billion budget.

The FY 27 budget passed in the early morning hours Monday. According to Gov. JB Pritzker’s office, it "centered on making Illinois more affordable for working families."

“Every element of the budget for the upcoming fiscal year was thoroughly deliberated with the aim of achieving widespread affordability for all Illinoisans,” Pritzker said in a release. "I look forward to signing the FY27 budget and delivering for Illinois’ working families in all stages of life."

The so-called holiday, similar to ones in other states, gives Illinois families a limited-time opportunity to purchase back-to-school items without having to pay state sales tax. Some states eliminated the tax entirely.

In 2022, Illinois reduced the sales tax rate for back-to-school items from 6.25% to 1.25%. While efforts were made in the Illinois legislature to bring it back, no such sales-tax holiday had been included since.

That is, until this year. According to Pritzker’s office, a "back-to school sales tax holiday" wil return to Illinois from Aug. 7 through 16. During that time, families shopping for school supplies, clothing, computers and other necessities "will not pay sales tax," the release said.

In other states, the sales tax holiday typically applies to items priced under a certain amount. For example, in Missouri, the state’s annual sales tax holiday, running Aug. 7 through Aug. 9, applies to clothing of $100 or less per item, school supplies at $50 or less per item and computers or similar devices at $1,500 or less.

Further details about the August holiday were not released.

Also included in Illinois’ FY2027 budget was a six-month pause on the state’s gas tax, starting July 1. That tax typically increases every July 1 to provide funding for transportation and infrastructure projects around the state. July 1, 2026, the tax was set to increase by 2.7% — going up to $0.496 per gallon — but that will be temporarily paused, Pritzker’s office said, citing "higher costs driven by economic uncertainty and rising energy prices."

“While so much feels out of our control, this budget is about taking charge of what we can control,” Majority Leader Robyn Gabel said in the release. “It’s about ensuring every day doesn’t have to feel like a struggle.

Notably, the budget did not any legislation around a Chicago Bears stadium, with a vote not brought to the House floor. Other big priorities left out of the budget were legislation on curbing data centers and holding AI companies more accountable.

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June 1, 2026 at 11:09AM

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