Sales Taxes

Municipal 1% Sales Tax
The City of Elmhurst receives from the State of Illinois 16% of the 6.25% State sales tax on general merchandise, equivalent to 1% of gross sales. This source of revenue is directly correlated to economic development activities within the City and influenced by general economic conditions.

Despite its volatility due in particular to automotive sales, sales tax remains the greatest single source of revenue for the General Fund - approximately 28% of General Fund revenues. In addition to the 1% received on general merchandise, the City also receives 100% of the 1% State sales tax on food and qualifying drugs.

Local Use Sales Tax
Use tax is a tax imposed on the privilege of using, in Illinois, any item of tangible personal property that is usually purchased out-of-state. This liability generally results when out-of-state vendors make retail sales to Illinois businesses or consumers, or when Illinois consumers purchase items out-of-state for use in Illinois without paying tax to the retailer.

The use tax rate is 6.25% on general merchandise purchases, including titled vehicles, and 1% on qualifying food, drug, and medical appliance purchases. Of the collected amount, 20% is distributed to local government agencies. The amount distributed to municipal and county governments, with the exception of Chicago, is based on population. One other exception to the per capita distribution is that the local tax portion collected on a titled vehicle is allocated directly to the municipality where the vehicle is registered.

Home Rule 1% Sales Tax
The City of Elmhurst, pursuant to its home rule authority, implemented a 0.25% local home rule sales tax effective September, 1991.  This tax is applicable to all sales except qualifying food and drugs and titled vehicles.  Effective January 1, 2009, the home rule sales tax increased to 0.75%.  Effective July 1, 2016, the home rule sales tax rate increased to 1.00%.  The additional increase of 0.25% is designated for Stormwater improvements.