Illinois' back-to-school sales tax holiday saved shoppers an estimated $11.4 million, state says

Illinois shoppers saved an estimated $11.4 million during the state’s back-to-school sales tax holiday in August, Gov. JB Pritzker’s office said Monday.¹ That was more than the $10 million in savings the state had estimated before the holiday.¹

The holiday ran from Aug. 7 through Aug. 16 and cut the state sales tax on clothing, footwear and school supplies.¹ About 2,284 retailers sold an estimated $229.3 million in qualifying items during those 10 days, according to the governor’s office.¹

What was covered

For the 10 days, the state waived its 5% sales tax on qualifying purchases.¹ Local sales taxes still applied.¹

Clothing and shoes priced under $125 per item were eligible, including shirts, pants, dresses and other everyday clothing, the release said.¹ School supplies such as notebooks, folders, binders, pens, pencils and calculators also qualified, with no price limit.¹

The reduced rate applied to purchases in stores and online, and retailers took it off automatically at checkout, so shoppers got the savings at the time of purchase.¹

What officials said

“Illinois working families saved $11.4 million, while our students got what they needed to start the school year off right,” Pritzker said in a statement.¹

Illinois Department of Revenue Director David Harris said the holiday “helped ease the cost of school essentials” by cutting the state rate on qualifying purchases.¹ “This initiative provided Illinois taxpayers with meaningful savings as they prepared for the new school year,” Harris said.¹

The release also quoted Lt. Gov. Juliana Stratton and three Democratic legislators from Chicago: Majority Appropriations Leader Elgie R. Sims Jr., state Sen. Celina Villanueva and state Rep. Kam Buckner.¹ Several of them described the holiday as relief from rising prices and blamed federal policies for higher costs.¹ Stratton said the holiday gave families “a break in this affordability crisis.”¹

The release did not include comment from Republican lawmakers.¹

Background

The holiday was enacted as part of the budget package for fiscal year 2027, according to the governor’s office.¹

Buckner said in the release that affordability “remains at the forefront of everyone’s minds” as lawmakers prepare for this year’s veto session.¹ The release did not say whether the administration will seek to repeat the holiday next year.¹