Illinois’ candy tax doesn’t apply to any treats made with flour. Kit Kat, Twix and Snickers are all taxed as groceries, not candy, and come with a cheaper price tag.
Candy is a staple around this time of year. Illinois is one of ten states that taxes most candy items at the full sales tax rate of 6.25%, so stocking up on the sweet stuff could cost you.
But anything made with flour, Kit Kats, Twix and Snickers, doesn’t count as candy. They are considered groceries.
Since those are taxed as groceries, shoppers pay the 1% rate instead of the 6.25% sales tax. Other items designated “candy” because they are made without flour such as Starburst, Skittles and M&Ms. A difference in one ingredient can leave you paying more than six times the sales taxes.
It’s an unfair tax against Illinoisans with celiac or gluten intolerance as they can’t consume flour.
While the state tax is on the way out, more than 600 communities throughout our state have chosen to keep taxing their residents’ grocery purchases. Chicago residents will enjoy a reprieve from the 1% grocery tax until at least mid 2026, when the city council could reinstate it as a local tax.
More than half of Illinois’ communities have decided to let their citizens buy their groceries tax free and Chicago should commit to doing the same. The state should also limit the unfunded liabilities it hands off to local communities that drive local taxes higher.
