Beginning July 1, Illinois began suspending its 1% grocery tax for the next year to help residents keep more money in their pockets as prices continue to rise nationwide. Illinois is only one of 13 states to levy a grocery tax, the Chicago Sun-Times reported, which critics said contributes to higher food insecurity for SNAP recipients and other low-income households. While Illinois residents may be paying less at checkout, this temporary change only applies to everyday grocery items to take home.

                By                    Josephine Nesbit

SNAP Schedule: When Illinois Link Card Payments Disburse in July 2022Live Updates: Financial Trends, Money News and More

SNAP benefits do not fully cover statewide grocery taxes on all purchases, according to the Chicago Sun-Times. Recipients must still pay a grocery tax on purchases not covered by SNAP. According to the U.S. Department of Agriculture, SNAP benefits cannot be used to buy:

More From Your Money: Choose a high-interest saving, checking, CD, or investing account from our list of top banks to start saving today.

  • Any non-food itemsAlcoholic beverages and tobaccoVitamins and medicinesAny food that will be eaten in the storeHot foods

Illinois typically charges a 1% tax on groceries, medicine, other drug items and hygiene products. Other purchases are charged at a higher sales tax rate of 6.25%, reported The Motley Fool. Medicine, drug items and hygiene products, which are not covered by SNAP, will continue to be taxed at the 1% tax rate in Illinois.

SNAP 2022: Is My State Giving Out Extra EBT Food Stamp Money in July?SNAP Not Enough: Why White House Is Holding Rare Food Insecurity Conference This Fall

Additionally, The Fool noted that food packaged for immediate consumption, soft drinks, candy and alcoholic beverages will continue to be taxed at the state sales tax rate of 6.25% plus any local taxes, if applicable. SNAP recipients will be able to purchase snacks, candy and soft drinks without paying tax, but alcoholic beverages will be taxed at 6.25% for all residents.

  • Dollar Tree: 5 High-Quality Items To Buy NowDo You Have a Tax Question? Ask a Tax ProThe 10 Best Cash Back Credit Cards for 20236 Reasons Why You Shouldn’t Procrastinate on Your Taxes