You pay a little more for almost everything you buy when you live in Chicago, and eating is no different. "Is this food taxed?" may be on your mind when you go grocery shopping or place an order for takeout. In Chicago, the answer isn't precisely yes or no. You may or may not be aware that additional sales tax has been added to your purchase, depending on the type of food you're buying and where you're buying it. Let's now examine the taxation of food, its exemptions, and its overall mechanism.

The Kind Of Food You Buy Determines Whether Food Is Taxed In Chicago

There is no sales tax on food that you plan to cook at home. It's not illegal to buy bread, milk, eggs, fresh veggies and fruits, and other basic foods in Chicago. You won't have to pay sales tax on the food you buy for a week, and your food budget is exactly what you planned. Once the food is ready to eat, however, the tax applies.

The City Of Chicago Does Not Tax Groceries That Are Bought To Be Eaten At Home

Most of the food you buy at a Chicago grocery store isn't taxed, so you can stock up on things like cereal, pasta, meat, and veggies without having to pay a little extra. The exception only applies if the food is meant to be used at home and not eaten right away. No matter if you're buying things for a big pot of spaghetti for dinner or a sandwich for lunch, you won't have to pay extra sales tax. 

There Are Certain Exceptions To Certain Foods That Are Taxed In Chicago

Even though you might consider them basic supermarket items, there are some meals in Chicago that are subject to taxes. The most common foods in this group are candy and soda. Because they are processed, unnecessary, or contain a lot of sugar, Illinois does impose taxes on them even if they might be considered food. This means that sales tax will be applied to the price when you pick up a bag of candies or a can of soda. Therefore, even if the majority of food is tax-free, these small delights will cost you a little more.

Sales Tax Is Applied On Hot Foods From Grocery Stores That Are Intended For Immediate Consumption

Curiously, hot items purchased at the grocery store that are intended for immediate consumption are subject to taxes. When you grab a piece of pizza or a hot rotisserie chicken at a grocery store for a fast lunch, sales tax is charged. However, there won't be any tax applied if you purchase those goods cold or uncooked and intend to use them in a later meal. When you order a hot meal to go or grab a sandwich at the deli counter, the sales tax is added as long as the product is intended to be eaten immediately.

Why Are Certain Foods Taxed In Chicago While Others Are Not?

Depending on whether a food is considered a "basic necessity" or more of a luxury, some foods are taxed while others are not. To help people afford food, basic items like bread, fruits, vegetables, and meats are excluded from sales tax. Candy, soda, and prepared hot food are examples of less essential commodities that are charged in order to pay for city services.

It also refers to the city budget as a whole. City services, building construction, and even cleaning the streets and public areas are funded by the prepared food fees. The city's beauty and smooth operation are a result of those extra tax funds.

Just like how the tax funds contribute to creating projects to maintain the cleanliness of the city, Deep Cleaning Chicago also dedicates its service to making sure the city is spotless and safe.

Food Taxation In Chicago Can Vary Based On What You Buy And How It's Prepared

Certain foods in Chicago are subject to taxes, while others are not. While food and beverages prepared in restaurants or convenience stores are subject to sales tax, groceries bought for domestic consumption are typically free. Although taxes are a given in the city, they also help to support and clean Chicago. You can plan and budget your meals if you are a wise consumer and know when food is subject to taxes. Remember the specifics of Chicago's food tax laws the next time you eat out or buy groceries, and you'll be able to enjoy the Windy City and save a little money!