July 1 brings new laws, new fees, and a few surprises for Illinois

Just when Illinois residents thought their wallets could catch a break, surprise! The state found a few more ways to lighten residents’ wallets. Beginning Tuesday, July 1, with the new fiscal year, a new wave of taxes and eyebrow-raising laws will take effect, reminding everyone that in Illinois, creativity isn’t just for the arts, it’s for revenue, too. 

These updates are part of Illinois’ FY 2026 budget, projected to raise more than  $1 billion annually through targeted excise and service tax adjustments. The aim: to balance the state budget while maintaining critical investments in public safety, infrastructure, and healthcare.

Here’s a handy cheat sheet for what’s going up and what might have Illinoisans thinking that receipts need warning labels.

 New Taxes & Major Changes

Also in Effect: Environmental & Other Consumer Laws

• Disposable mini-shampoo bottle bans in hotels with 50 or more rooms (one-use products are banned); statewide rollout begins Jan. 1,2026.

• Karina’s Law: Law enforcement must remove firearms from individuals under domestic violence restraining orders (already effective since February 2025).

What to Expect (and Maybe Prepare For)

• Gas, vapes, and phone bills are all going up blame new taxes.

•  Airbnb stays now come with a 6% hotel tax.

• Sports bets might cost a bit more per wager.

• Retailers need to update sales systems and skip swipe fees on taxes and tips.

Also Taking Effect July 1

• Opioid Safety: Any employee of a state department or agency can now carry and use overdose-reversing meds; fentanyl test strips get wider distribution.

• Legal Docs: Private process servers can skip court approval to deliver paperwork.

• Construction: New rules aim to prevent utility damage; call JULIE.

• Restaurants: Mandatory service charges must go to employees, not management.

• Fifty Illinois municipalities, counties, and business districts are also raising their local sales tax rates starting July 1, a move that will affect everything from retail purchases to dining out. The complete list of affected areas is available on the Illinois Department of Revenue’s bulletin.

From gas pumps to grocery runs, Illinois isn’t just raising taxes, it’s raising eyebrows. By July 1, Illinoisans may want to skip the math and go straight to emotional support snacks. Either way, the Land of Lincoln just became the Land of “Wait, how much?!” The good news is that nothing else is going up, except for Illinois’ blood pressure.