Parents in Illinois got some financial relief last summer back-to-school season thanks to a state law that cuts tax rates on covered school supplies, clothing and footwear.
Included in the $46.50 budget approved by Gov. J.B. Pritzker months ago, the 2022 sales tax holiday reduced the state sales tax on clothing and school supplies by 5% for 10 days last August.
With the start of the new school year creeping closer and shopping for school supplies becoming a top concern, some parents may be wondering if additional relief measures will be back this time.
This year, unfortunately, the family may get a little more out of the woods.
A spokeswoman for the Illinois Department of Revenue said the sales tax holiday program was only approved in 2022 and won’t be reinstated this year.
Last year’s sales tax holiday, which cut the tax rate from 6.25% to 1.25%, began on August 5 and ended on August 14. Eligible purchases include select clothing and footwear with a retail price of less than $125 per item. The $125 threshold did not apply to eligible school supplies.
Unlike sales tax holidays, Illinois has long had deduction for education expenses About tax returns. Parents can take her 25% tax credit for eligible back-to-school expenses over $250 on her personal income tax return. Total credits cannot exceed her $750 regardless of the number of eligible children.
As in previous years, back-to-school shopping costs will rise again.
Spending last year was $36.9 billion and hit a record high of $37.1 billion in 2021, but is likely to reach a record $41.5 billion this year, according to the Times. National Retail Federation, According to a trade group representing various retailers.
According to the association, families with children in elementary school to high school will spend an average of $890.07, about $25 more than last year’s record of $864.35, and a new all-time high.
