Bill > HB4252

This bill creates a new sales tax holiday period in Illinois from August 2, 2026 through August 11, 2026, during which certain school supplies and clothing items will be taxed at a reduced rate of 1.25% instead of the standard 6.25% sales tax rate. Specifically, the sales tax holiday will apply to clothing items priced under $125 and school supplies used by students in a course of study, with some exclusions like computers, art supplies, and protective equipment. Retailers will be required to collect and remit the reduced tax rate during this period, and there are detailed administrative rules about how the reduced rate applies to bundled sales, exchanges, rain checks, and other transaction scenarios. The bill amends multiple existing tax laws to incorporate this new sales tax holiday period, adding it to previous sales tax holidays that occurred in 2010 and 2022. The bill takes effect immediately upon becoming law, allowing retailers and consumers to prepare for the August 2026 sales tax holiday.

https://www.ilga.gov/Legislation/BillStatus?DocNum=4252&GAID=18&DocTypeID=HB&SessionID=114&GA=104