Lisa Hernandez Lauds New Law Eliminating Tax on Groceries

CICERO, Ill. – A measure backed by state Rep. Elizabeth ‘Lisa’ Hernandez, D-Cicero, which would cut costs at the grocery store and save taxpayers more money, was signed into law on Monday, Aug. 5.

“Many in our community make regular, daily trips to the grocery store to stock their shelves and fill their children’s stomachs, yet they pay for it with high grocery bills,” Hernandez said. “In our most recent budget we made significant strides to cut costs for healthcare, childcare and housing, but this legislation will have the immediate and profound impact that our communities should expect. The state’s grocery tax is at best antiquated, and at worst, harmful to the most vulnerable. I am proud to say that this tax is now a thing of the past.”

Illinois has been one of just 13 states that imposes a 1% statewide grocery tax. Working closely with retailers and municipal government leaders, Hernandez passed House Bill 3144, which will eliminate the statewide tax. Cities, villages, and towns will receive additional state resources to offset the change. The elimination of the grocery tax takes effect on Jan. 1 2026, giving municipalities time to plan.

Hernandez worked this session to cut costs in key areas affecting families including healthcare, childcare and housing.

She cracked down on out-of-control premium increases that pad the profits of health insurance companies, banned low-coverage, high cost ‘junk’ insurance plans and prohibited insurance companies from denying treatment plans prescribed by doctors (House Bill 5395). Hernandez also put more than 4,700 units of affordable housing on the market (SB 251) and kept her word to make raising children more affordable, expanding a child tax credit to help families save hundreds of dollars (SB 251).