Are vitamins, dietary supplements, and similar products taxed at Illinois's low 1% food/drug rate or the general 6.25% sales-tax rate?

Plain-English summary

A taxpayer sent the Illinois Department of Revenue product labels for a "plant-based omega supplement," marketed as a whole food, and asked how it should be taxed for Illinois sales-tax purposes. Because the inquiry didn't ask for a binding ruling on a specific transaction, the Department responded with a General Information Letter (GIL) rather than a Private Letter Ruling (PLR), pointing the taxpayer to its regulations rather than issuing a binding determination.

The Department explained that Illinois taxes "food" at a reduced rate of 1% (plus applicable local taxes) when it is to be consumed off the premises where sold, other than alcoholic beverages, soft drinks, and food prepared for immediate consumption. Under 86 Ill. Adm. Code 130.310, "food" is defined broadly as any solid, liquid, powder, or item intended by the seller primarily for human internal consumption — a definition that expressly includes condiments, spices, seasonings, vitamins, bottled water, and ice.

A separate, narrower category — "medicine or drug" under 86 Ill. Adm. Code 130.311 — covers any pill, powder, potion, salve, or other preparation for human use that purports on its label to have medicinal qualities. The Department noted that vitamins, food supplements, and meal-replacement drink mixes qualify as drugs (and get the low rate on that basis) only if their labeling actually makes a medicinal claim. Since most such products don't make medicinal claims, they instead fall under the food definition and still get the low 1% rate on that separate basis. Products that meet neither the food definition nor the drug/medicine definition, or that are prepared by the vendor for immediate consumption, are taxed at the standard 6.25% state rate plus local taxes.

What this means for you

If you sell vitamins or dietary supplements in Illinois

Most vitamins, dietary/food supplements, and meal-replacement drink mixes will qualify for Illinois's low 1% sales-tax rate (plus local taxes) as "food," because they are intended primarily for human internal consumption. You generally don't need the product to make a medicinal claim to get the low rate — the food definition alone usually covers it.

If your product label makes a medicinal claim

If your product's label purports to have medicinal qualities (for example, claiming to treat, cure, or prevent a condition), it may instead be classified as a "medicine or drug" under 86 Ill. Adm. Code 130.311. Either way — as food or as a qualifying drug — the Department's analysis here shows both categories reach the same low 1% rate, so the practical tax outcome for a typical vitamin or supplement is the same.

Know the difference between a GIL and a PLR

This letter is a GIL, not a PLR. A GIL is not binding on the Department and doesn't carry the same legal protection as a PLR issued under the procedures at 2 Ill. Adm. Code 1200.110. If you need a determination that legally binds the Department for your specific facts, you must request a PLR through those procedures rather than a general inquiry.

Common questions

Are vitamins automatically taxed at the low food rate in Illinois?
Generally yes. Vitamins are specifically listed as an example of "food" in the Department's own regulation (86 Ill. Adm. Code 130.310), so they typically qualify for the 1% low rate as food, regardless of whether their label makes a medicinal claim.

When would a supplement be taxed as a "drug" instead of as "food"?
Only when its label purports to have medicinal qualities, per 86 Ill. Adm. Code 130.311. The Department noted this is uncommon for typical vitamins and supplements.

What tax rate applies if a product doesn't qualify as food, a drug, or a medical appliance?
It is taxed at Illinois's general state sales-tax rate of 6.25%, plus any applicable local taxes.

Is this letter legally binding on the Illinois Department of Revenue?
No. This is a General Information Letter (GIL), which the Department itself states "is not a statement of Department policy and is not binding on the Department." A binding determination requires requesting a Private Letter Ruling (PLR) under 2 Ill. Adm. Code 1200.110.

Citations and references

• 86 Ill. Adm. Code 130.310 — defines "food" and sets the 1% low state sales-tax rate for food consumed off-premises
• 86 Ill. Adm. Code 130.311 — defines "medicine or drug" for purposes of the low sales-tax rate
• 2 Ill. Adm. Code 1200.110 — procedures for requesting a binding Private Letter Ruling (PLR)
• 2 Ill. Adm. Code 1200.120 — governs General Information Letters (GILs), which are non-binding

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2017.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2017/st-17-0008-gil.pdf

Original ruling text

ST 17-0008-GIL 03/07/2017 FOOD, DRUGS, & MEDICAL APPLIANCES

Items such as vitamins or dietary supplements are considered foods and may qualify for the
low State rate of tax. See 86 Ill. Adm. Code 130.310. (This is a GIL.)

March 7, 2017

Dear Xxxxx:
This letter is in response to your letter dated February 16, 2017, in which you requested
information. The Department issues two types of letter rulings. Private Letter Rulings (“PLRs”) are
issued by the Department in response to specific taxpayer inquiries concerning the application of a
tax statute or rule to a particular fact situation. A PLR is binding on the Department, but only as to the
taxpayer who is the subject of the request for ruling and only to the extent the facts recited in the PLR
are correct and complete. Persons seeking PLRs must comply with the procedures for PLRs found in
the Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information
Letter (“GIL”) is to direct taxpayers to Department regulations or other sources of information
regarding the topic about which they have inquired. A GIL is not a statement of Department policy
and is not binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website
at www.tax.illinois.gov to review regulations, letter rulings and other types of information relevant to
your inquiry.
The nature of your inquiry and the information you have provided require that we respond with
a GIL. In your letter you have stated and made inquiry as follows:
Please review the enclosed product labels for the item listed below, and provide us with
a determination of sales taxability in your state. Please note that this product is
categorized as whole foods.
Product:

PRODUCT + plant-based omega supplement

I will be happy to provide additional information if needed. Thank you for your prompt
attention to this matter.
Your assistance is appreciated.

DEPARTMENT’S RESPONSE:
Please review the Department’s regulation at 86 Ill. Adm. Code 130.310, regarding the
appropriate tax rates for food, drugs, medicines and medical appliances. As you can see from the
regulation, food that is to be consumed off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for immediate consumption) is taxed at the
rate of 1% plus applicable local taxes. Food is defined as any solid, liquid, powder or item intended by
the seller primarily for human internal consumption, whether simple, compound or mixed, including
foods such as condiments, spices, seasonings, vitamins, bottled water and ice.

ST 17-0008-GIL
Page 2

Products that do not meet the appropriate definitions of food, drugs, medicines and medical
appliances, or that are food prepared by the vendor for immediate consumption, are taxable at the
higher State sales tax rate of 6.25% plus applicable local taxes.
A medicine or drug is defined as any pill, powder, potion, salve, or other preparation for human
use and that purports on the label to have medicinal qualities. See 86 Ill. Adm. Code 130.311.
Therefore, if vitamins, food supplements or meal replacement drink mixes are for human use and
purport on the label to have medicinal qualities, such items are considered to be drugs and are taxed
at the low rate of tax. Since not many vitamins, food supplements or meal replacement drink mixes
are likely to make medicinal claims, they would not qualify as a medicine or drugs, however, such
items would be considered to be food subject to 86 Ill. Adm. Code 130.310.
I hope this information is helpful. If you require additional information, please visit our website
at www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.

Very truly yours,

Cara Bishop
Senior Counsel

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