Beginning July 1, 2022, the Illinois Family Relief Plan provides relief on grocery, gas, and property taxes. Overall, the plan saves Illinois consumers an estimated 1.83 billion dollars with tax rebates and temporary sales tax cuts.
The Illinois Family Relief Plan includes several tax holidays and rebates, including:
Tax Holidays and Cuts
- Groceries – The state’s 1% sales tax on groceries will be suspended from July 1, 2022, through June 30, 2023.
- Gas – The state’s normally scheduled increase in motor fuel tax is delayed from July 1, 2022, through January 2023.
- School Supplies – Sales tax for qualified clothing and school-related items will be reduced from 6.25% to 1.25% for a 10-day window from August 5, 2022, to August 14, 2022. Read More Here
- Qualified clothing and footwear retail selling price of less than $125. Eligible school supplies are not subject to the $125 threshold.
Rebates
- The State of Illinois is also providing property tax rebates for eligible homeowners in the amount of the property tax rebate they qualified for on their 2021 Illinois income tax return. Property tax rebates are limited to $300.
- Individuals who made less than $200,000 in 2021 will receive $50 income tax rebates. Couples filing jointly with incomes under $400,000 will receive $100.
- Tax filers will also receive $100 per dependent they claimed on their 2021 tax filing, up to three dependents.
Income and property tax rebates will begin to be automatically issued to qualified individuals the week of September 12, 2022, and, due to high volume, are expected to take several months to be fully issued.
Click Here to visit the 2022 State of Illinois Tax Rebates page for details and Q&A.
Other Relief
- The plan permanently expands the state’s earned income credit from 18% to 20% of the federal credit, while expanding the number of households covered.
The Illinois Family Relief Fund is aimed at combating rising inflation and provides tax holidays, temporary tax cuts, and tax rebates to qualified Illinois households. For additional information, taxpayers may visit IDOR’s website at tax.illinois.gov.
