State Sales Tax Holiday: August 5th through 14th 2022

The state sales tax holiday is a ten-day period during which consumers can purchase certain clothing and school-related items and pay sales tax at a reduced rate. The state’s portion of sales tax due throughout the holiday is reduced by 5 percent (5.00%) from 6.25 percent (6.25%) to 1.25 percent (1.25%).

Items include qualifying clothing and footwear with a retail selling price of less than $125 per item and certain school supplies used by students in the course of study. School supplies are not subject to the $125 threshold.

What action must the retailer take?

Retailers must adjust their method of collecting sales tax so that beginning on August 5, 2022, and ending at the close of business August 14, 2022, they will collect the reduced tax rate on qualifying items. The sales tax rate that retailers must use during the holiday period is the rate currently in effect on the date of the holiday minus 5.00 percent (5.00%).

Qualifying Items:

Broadly the sales tax holiday qualifies for clothing under $125 per item, footwear under $125 per item, and school supplies. For more details and non-qualified items see here.

For more information consult your bookkeeper, accountant, or the Illinois Department of Revenue.