The sales tax holiday (August 5 – August 13) is designed to give back-to-school shoppers relief on items purchased for student use.
The State sales tax on qualifying items is reduced from 6.25% to 1.25%, a reduction of 5%. This does not affect local taxing areas, so, if the local tax rate is normally 8.5%, the tax rate will be reduced by 5% to 3.5% during the holiday period.
A complete list of included and excluded items are on page 3 of the notice. In general, most general clothing and shoes which retail at less than $125 per item and most school supplies other than computers and phones are eligible.
Contact Chicago Tax Professionals Today
If you have questions about the sales tax holiday, contact KRD today.
