Illinois Cannabis Retail Tax Rates Change July 1 2025
Summary
The Illinois Department of Revenue has issued FY 2025-20 informing dispensaries that certain taxing jurisdictions have enacted changes to Municipal and County Cannabis Retailers' Occupation Taxes effective July 1, 2025. Specifically, Logan County and Macon County are imposing County Cannabis Retailers' Occupation Tax changes. Municipalities may impose taxes up to 3% and counties up to 3.75% in unincorporated areas and 3% in municipalities, in one-quarter percent increments. The bulletin instructs dispensaries to adjust cash registers and computer programs to collect and pay the correct combined state and local retailers' occupation tax rate on adult use cannabis sales beginning July 1, 2025.
“You must adjust your cash register and any computer program so that beginning on July 1, 2025, you will collect and pay the correct tax rate.”
Dispensaries operating in Logan County and Macon County should verify their specific combined tax rates via MyTax Illinois Tax Rate Finder before July 1, 2025. While no municipalities enacted changes for this period, the ordinance submission deadlines (April 1 for July 1 implementation and October 1 for January 1 implementation) mean additional jurisdictions may impose taxes in future periods — dispensaries should monitor for October 2025 submissions affecting January 2026 rates.
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GovPing monitors IL DOR Informational Bulletins for new tax regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 13 changes logged to date.
What changed
The bulletin announces that Logan County and Macon County are imposing County Cannabis Retailers' Occupation Tax changes effective July 1, 2025, while no municipalities are making changes for this period. These taxes apply to gross receipts from adult use cannabis sold at retail, in addition to the Illinois Retailers' Occupation Tax of 6.25% on general merchandise. Counties may impose up to 3.75% in unincorporated areas and 3% in municipalities; municipalities may impose up to 3%, all in quarter-percent increments.
Dispensaries selling adult use cannabis in affected jurisdictions must update their point-of-sale systems to reflect the correct combined state and local tax rates before July 1, 2025. The bulletin clarifies that medical cannabis purchased under the Compassionate Use of Medical Cannabis Program Act is not subject to these taxes. Dispensaries can verify rates using the MyTax Illinois Tax Rate Finder.
What to do next
- Adjust cash register and computer programs to collect and pay the correct tax rate beginning July 1, 2025
- Verify new combined state and local retailers' occupation tax rates on adult use cannabis using the MyTax Illinois Tax Rate Finder at mytax.illinois.gov for July 2025
Archived snapshot
Apr 27, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
FY 2025-20
April 2025
This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.
For information:
Visit our website at:
tax.illinois.gov
For questions about local tax rates, email:
Rev.LocalTax@illinois.gov
Printable version available in:
English
Municipal and County Cannabis Retailers’ Occupation Tax Rate Changes, Effective July 1, 2025
To: All dispensaries engaged in the business of selling adult use cannabis at retail in taxing jurisdictions that have enacted Municipal or County Cannabis Retailers’ Occupation Taxes
Effective July 1, 2025, certain taxing jurisdictions have, by ordinance, imposed or changed their Municipal or County Cannabis Retailers’ Occupation Tax on the gross receipts from sales of adult use cannabis (65 ILCS 5/8-11-23; 55 ILCS 5/5-1006.8). These taxes are in addition to Illinois Retailers’ Occupation Tax on general merchandise (6.25%) and any locally-imposed retailers’ occupation tax on general merchandise, which also apply to sales of adult use cannabis.
You must adjust your cash register and any computer program so that beginning on July 1, 2025, you will collect and pay the correct tax rate.
To verify your new combined state and local retailers’ occupation tax rates (i.e., state and local taxes) on adult use cannabis, go to the MyTax Illinois Tax Rate Finder at mytax.illinois.gov and select rates for July 2025.
What is taxed?
Municipal and County Cannabis Retailers’ Occupation Taxes are imposed on gross receipts from adult use cannabis sold at retail. These taxes, however, are not imposed on cannabis purchased under the Compassionate Use of Medical Cannabis Program Act.
What is the tax rate that counties and municipalities can impose by ordinance on retail sales of cannabis?
Municipalities may impose a tax on retail sales of cannabis, other than medical cannabis, at a rate that may not exceed 3%, imposed in one-quarter percent (0.25%) increments. Counties may impose a tax (also in one-quarter percent increments) on retail sales of cannabis, other than medical cannabis, at the following rates:
- In unincorporated areas of the county, the rate may not exceed 3.75%.
- In a municipality located in the county, the rate may not exceed 3%. For implementation of the tax by the Illinois Department of Revenue (IDOR), municipalities and counties must submit their ordinances to IDOR by April 1 for July 1 implementation and by October 1 for implementation on the following January 1.
What counties and municipalities are imposing tax rate changes effective July 1, 2025?
The following municipalities are imposing Municipal Cannabis Retailers’ Occupation Tax:
No Municipal Cannabis Retailers’ Occupation Tax Changes for July 1, 2025.
The following counties are imposing County Cannabis Retailers’ Occupation Tax:Logan County
Macon County
Adult use cannabis is taxed at the general merchandise sales tax rate applicable in the jurisdiction in which the dispensary is located plus any additional municipal and county cannabis retailers’ occupation taxes. To verify your new combined state and local retailers’ occupation tax rates (i.e. state and local taxes) on adult use cannabis, go to the MyTax Illinois Tax Rate Finder at mytax.illinois.gov and select rates for July 2025.
Where can I find more information about Municipal and County Cannabis Retailers’ Occupation Taxes?
For more information about Municipal and County Cannabis Retailers’ Occupation Taxes, visit the Cannabis Taxes Information Page on our website. You may also contact the Local Tax Allocation Division at Rev.Localtax@illinois.gov.
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