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December 30, 2025

New Illinois Laws Taking Effect January 1, 2026: Grocery Taxes, AI Rules, Public Safety Updates, and MoreSPRINGFIELD / CHICAGO SUBURBS — A slate of new Illinois laws takes effect on January 1, 2026, with changes that touch everyday life—from what you pay at the grocery store to how employers use artificial intelligence, plus new requirements tied to roadway safety, firearm storage, and school mental-health resources.

Below is a practical breakdown of some of the most notable changes, with verification links to official guidance and primary-source bill materials where available.


1) Illinois Ends the Statewide 1% Grocery Tax (But Local Taxes May Replace It)

Starting January 1, Illinois will eliminate the state’s 1% grocery tax on qualifying food purchases. The change is confirmed in Illinois Department of Revenue guidance, including reporting instructions for retailers.

  • What this means for shoppers: many receipts should reflect a lower state tax on groceries starting January 1, but your total bill may not drop if your city or county has enacted a replacement local grocery tax.
  • What this means for municipalities: Illinois law also authorizes local governments to adopt a local grocery tax by ordinance (a key reason impacts will vary suburb-to-suburb).

Sources:
Illinois Department of Revenue: Grocery Tax Changes Effective Jan. 1, 2026 |
Illinois Department of Revenue: Municipal/County Grocery Tax Bulletin (local option) |
Public Act 103-0781 (PDF)


2) New AI Rules in Employment: Disclosure + Anti-Discrimination Guardrails

Illinois is tightening requirements around artificial intelligence in employment decisions—including hiring, promotion, discipline, and termination—aimed at preventing discrimination and increasing transparency. Beginning January 1, 2026, employers are expected to provide notice when AI is used to influence employment decisions, and AI tools may not be used in ways that result in unlawful discrimination.

  • What job seekers should know: you may start seeing notices that an employer uses AI to screen or evaluate candidates.
  • What employers should know: Illinois has been developing implementation details via rules and guidance connected to these changes.

Sources:
Foley & Lardner overview of HB 3773 (effective Jan. 1, 2026) |
Ogletree: Draft notice rules and compliance direction

Is the AI employment law “first of its kind” in Illinois?

No. It’s a major milestone for employment practices, but Illinois already has other AI-related laws in effect or taking effect that regulate AI use in sensitive settings:

  • AI “therapy” restrictions: Illinois enacted the Wellness and Oversight for Psychological Resources framework (often discussed as limits on AI providing therapy/psychotherapy services without licensed professionals).
    IDFPR announcement |
    ILGA bill status (HB 1806)
  • AI in the classroom (community colleges): community colleges will be barred from using AI bots to teach classes in place of human faculty, with statewide guidance work continuing for K–12 settings.
    Capitol News Illinois summary of the education/AI changes

3) Public Safety: “Move Over” (Scott’s Law) Expansion

Illinois is expanding roadway protections tied to the state’s “Move Over” requirements (often discussed under Scott’s Law). Drivers should expect broader scenarios where moving over and/or slowing down is required when approaching emergency or service activity on roadways.

  • What drivers should do: continue treating flashing lights and roadside responders as a cue to move over and slow down whenever it’s safe—this is the core safety expectation emphasized by state authorities.

Sources:
Illinois State Police: Move Over law overview |
WQAD reporting on the 2026 expansion


4) Firearm Storage: “Safe Gun Storage Act” Requirements

Beginning January 1, Illinois law strengthens safe storage requirements. In general terms, firearms must be secured—such as in a locked container—under circumstances where minors, at-risk persons, or prohibited persons could gain access. Violations can carry significant penalties.

  • What gun owners should do now: review storage expectations and ensure your storage method meets “locked/inaccessible” standards as described in the statute.
  • Also noted in 2026 reporting: Illinois is tightening timelines around reporting lost or stolen firearms (as covered by multiple Illinois news outlets).

Sources:
Illinois General Assembly: Safe Gun Storage Act (SB 8) bill status |
Capitol News Illinois: 2026 gun storage changes and related updates |
CBS Chicago: overview of key 2026 Illinois law changes


5) Schools: Suicide Prevention Resources Printed on Staff IDs

Illinois is also requiring schools to include key crisis and suicide-prevention resources on employee identification cards, including the 988 Suicide & Crisis Lifeline and other support options referenced by state leaders. The aim is to ensure faster access to help resources for students and staff.

Sources:
Sen. Doris Turner press release on staff ID mental-health resources |
Sen. Christopher Belt press release on the same measure


6) Workforce: Unemployment Pilot for Certain Mental-Health-Related Job Separations

Illinois is launching a pilot-style change connected to unemployment benefits that, as reported, may allow certain workers who leave a job due to a psychiatrist-certified mental health disability to qualify for unemployment benefits under defined conditions.

  • What to watch: eligibility details will matter (certification requirements, documentation, timelines, and program parameters). Residents considering this option should follow official program guidance as it becomes available.

Sources:
25 News Now reporting on the mental-health unemployment pilot |
Illinois General Assembly: HB 3200 bill status


What This Means for the Chicago Suburbs

For many suburban households, the most immediate change will likely be the grocery tax shift—especially because local governments may adopt replacement grocery taxes that preserve revenue but reduce (or eliminate) savings at the checkout line. Meanwhile, AI rules in employment and new public safety requirements will likely show up more gradually through employer notices, school ID updates, and public awareness campaigns.

Localsuburbs.com will continue tracking how individual municipalities implement the grocery tax change and how state agencies roll out guidance for the new AI and workforce-related provisions.

Have you seen your suburb pass (or discuss) a local grocery tax ordinance? Send us a tip and we’ll add it to our community coverage.

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Authored by: Joyce Guccione Editor in Chief