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.
As the start of another school year inches closer, and school supply shopping becomes top of mind, some parents might be wondering if the additional relief will return this time around.
This year, unfortunately families might be felling the pinch a little more.
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 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.
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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.
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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.
