When the state of Illinois decided to expire the statewide 1% grocery tax December 31,2025, local governments were given the option to replace it with their own tax on groceries. The Village of Arlington Heights has voted to do just that, enacting an ordinance for a 1% local grocery tax to begin January 1, 2026, in Arlington Heights. The Trustees also added a provision to sunset the tax in two years so they can re-evaluate, though the Village Board could amend the ordinance at any time to re-evaluate the tax.
Though this is a new local tax, the change will not increase the price of groceries in Arlington Heights as this replaces the expiring State of Illinois tax. Most, if not all, grocery retailers in Illinois should have the ability to calculate and remit this tax, though they will want to ensure it is being correctly reported as a local tax instead of a state tax beginning January 1, 2026. Local Governments have until October 1, 2025, to announce their plans to continue the grocery tax in their municipality, so grocery retailers will need to pay close attention to their particular location or locations to ensure they are or are not collecting the tax correctly. (Village of Arlington Heights Grocery Tax Ordinance and Amendment Ordinance No 2025-40, passed August 18, 2025, by the Board of Trustees)