Nutritional Supplements Under the Illinois Grocery Tax Suspension

Effective July 1, 2022, Illinois is suspending the state grocery tax until June 30, 2023. Essentially, grocery items that are normally taxed at the 1% low rate will instead be taxed at a rate of 0%. One item that may be considered a qualifying grocery item for this suspension in Illinois is nutritional supplements.

If you are selling a nutritional supplement that is currently taxed at the low 1% rate, you will not need to collect sales tax between July 1, 2022, and June 30, 2023. You will instead need to be familiar with the suspension and how to remain compliant. We wrote more about that here. 

However, not all nutritional supplements will qualify. Each situation is unique and the rate that should be used is based on many factors. For example, some determining factors of the taxability of a grocery item include:

• What the item is

• How the item is prepared

• The setting the item is being sold in

Determining which rate items should be taxed at can be quite complex. Thorough research is necessary to ensure compliance. If you require assistance, reach out to us here!