Illinois sales tax holiday not returning for 2023. Here's what to know - NBC Chicago

Illinoisans waiting to purchase certain items during a sales tax holiday will be disappointed this year.

Officials confirmed to NBC Chicago the measure that gave many relief last August was only in place for 2022.

The sales tax holiday was only approved for 2022 and won't be coming back this year, according to a spokesperson for the Illinois Department of Revenue.

"Last year’s sales-tax free holiday was always designed to be a one-time measure to help fight inflation because the state had a surplus to work with," a spokesperson for Gov. J.B. Pritzker's office said in a statement. "Thanks to the actions taken by President Biden, the Inflation Reduction Act is working as intended and we are seeing inflation ease throughout the nation. Governor Pritzker has been clear about his desire to cut taxes for working families, but he has also been clear that since all revenue from the grocery tax goes to local governments there would be a need to replace that revenue if this tax cut were to become permanent. The governor is committed to ensuring the state continues to live within its means while using surplus revenue to lift up working families as he did when he implemented temporary tax cuts last year."

Illinois parents saw some financial relief during back-to-school season last summer thanks to a state law that reduced tax rates on qualifying school supplies, clothing and footwear.

Included in the $46.5 budget approved by Gov. J.B. Pritzker months prior, the 2022 sales tax holiday lowered state sales tax on clothes and school supplies by 5% during 10 days last August.

Last year's sales tax holiday, which brought the tax rate down from 6.25% to 1.25%, began on Aug. 5 and ended on Aug. 14. Qualifying purchases included certain clothing and footwear with a retail selling price of less than $125 per item. Eligible school supplies items were not subject to the $125 threshold.

While different from the sales tax holiday, Illinois has long offered an education expense credit on tax returns. Parents can receive a 25% tax credit on eligible back-to-school expenses exceeding $250 on their individual income tax returns. The total credit cannot exceed $750 - regardless of number of qualifying children.

As in the past few years, back-to-school shopping costs will increase once again.

Spending will likely reach a record $41.5 billion this year, compared to $36.9 billion last year and the previous high of $37.1 billion in 2021, according to the National Retail Federation, according to the trade associations which represents a wide variety of retailers.

Families with children in elementary through high school will spend an average of $890.07 - approximately $25 more than last year’s record of $864.35 and a new high, according to the association.

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