A new state budget in Illinois that went into effect earlier this month is providing relief for families struggling with rising inflation rates, scrapping taxes on groceries and gas.
Under the Illinois Family Relief Plan, the state’s 1% sales tax on groceries and scheduled hike on motor fuel taxes will be suspended into 2023, which is expected to save consumers millions.
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“Amid historic rates of inflation, the people of our state deserve to know that they are not on their own. We are with them,” Lt. Gov. Juliana Stratton said in a statement. “This 1.8 billion in tax relief ensures that Illinoisans in every community, rural and urban, are seen and supported. When our residents are feeling the weight of buying food, gas, and making ends meet, Illinois acts to ease the burden.”
The suspension of the state’s sales tax on groceries will go through July 1, 2023. Meanwhile, the scheduled increase in motor fuel tax was delayed from July 1 until January 2023.
Sales taxes on qualifying “clothing and school-related items” will also be reduced from 6.25% to 1.25% for a 10-day window from Aug. 5 to 14, according to the release.
People who made less than $200,000 in 2021 will receive $50 income tax rebates. Couples who filed jointly with incomes under $400,000 will receive $100, and those with dependents will be paid $100 per dependent for up to three.
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The $1.8 billion plan also provides property tax rebates for eligible homeowners in Illinois in an amount equal to the property tax credit they qualified for on their 2021 Illinois tax returns, up to a maximum of $300.
