Are breast pumps, nursing bras, and other breastfeeding supplies taxed at Illinois's reduced 1% rate for medical appliances?

Plain-English summary

A person starting a small business selling breastfeeding products asked the Illinois Department of Revenue whether nine specific items — breast pumps, breast pump parts, herbal lactation supplements, lactation cookies, breast shields, breast shells, nipple cream, pumping/nursing bras, and gel pads for sore nipples — qualify for Illinois's reduced 1% sales tax rate that applies to medicines and medical appliances (instead of the standard 6.25% state rate plus local taxes).

The Department explained the legal test first, then applied it. Under 86 Ill. Adm. Code 130.311, a "medical appliance" is an item that directly substitutes for a malfunctioning part of the human body — things like artificial limbs, dental prostheses, crutches, wheelchairs, pacemakers, dialysis machines, hearing aids, eyeglasses, and diabetic testing supplies. A "medicine or drug" is a product that carries a written label claim that it cures, treats, or mitigates disease, illness, injury, or pain.

Applying that test, the Department concluded that none of the listed items appeared to directly substitute for a malfunctioning body part, so none of them would qualify for the 1% reduced rate — they would instead be taxed at the regular 6.25% state rate plus applicable local taxes. The one exception was the nipple cream: the Department said it could not determine the correct rate for that product without more information about how it is used and what medicinal claims (if any) appear on its label. The letter is a GIL, meaning it is not a statement of Department policy and is not binding on the Department.

What this means for you

Businesses selling breastfeeding or nursing-related products

If you sell items like breast pumps, pump parts, shields, shells, nursing bras, or lactation supplements/cookies in Illinois, this letter indicates the Department does not view them as "medical appliances" that directly substitute for a malfunctioning body part. Absent a different determination on your specific facts, you should generally expect to collect the standard 6.25% state Retailers' Occupation Tax rate (plus applicable local taxes) on these items, not the reduced 1% rate.

Sellers of creams, lotions, or topical products marketed for a medical use

The nipple cream example is the most instructive part of this letter for any topical or cosmetic-adjacent product. The Department would not commit to a rate without examining (1) how the product is actually used and (2) the specific medicinal claims printed on the product label. If your label makes a written claim that the product cures, treats, or mitigates a disease, illness, injury, or pain, it may qualify as a "medicine" taxed at 1%; if it reads as a cosmetic or comfort product with no such claim, it likely does not. Review your actual label language against 86 Ill. Adm. Code 130.311 before assuming either rate applies.

Accountants and tax professionals

This letter is a useful illustration of how the Department applies the "direct substitute for a malfunctioning body part" test to borderline consumer health products, as distinct from the separate "medicinal label claim" test for medicines and drugs. Because it is a GIL, it cannot be cited as binding precedent for a client's own facts — a taxpayer wanting certainty on a specific product line would need to request a Private Letter Ruling under 2 Ill. Adm. Code 1200.110.

Common questions

Q: Are breast pumps taxed at the reduced 1% Illinois rate?
A: Based on this letter, no. The Department found that breast pumps (and pump parts, shields, shells, and gel pads) do not appear to directly substitute for a malfunctioning part of the human body, so they would be taxed at the standard 6.25% state rate plus local taxes rather than the 1% medical-appliance rate.

Q: What about nursing bras or lactation cookies/supplements?
A: Same answer — the Department did not find that these items directly substitute for a malfunctioning body part, so they would not qualify for the 1% rate under this letter's reasoning.

Q: Did the Department decide the tax rate for the nipple cream?
A: No. The Department said it could not determine the rate without more information about how the product is used and without examining the medicinal claims made on its label, and it directed the requester to apply 86 Ill. Adm. Code 130.311 to make that determination.

Q: What makes something a "medical appliance" taxed at 1% in Illinois?
A: Per the regulation the letter cites, a medical appliance is an item that directly substitutes for a malfunctioning part of the human body — examples given include artificial limbs, dental prostheses, orthodontic braces, crutches, orthopedic braces, wheelchairs, pacemakers, dialysis machines, hearing aids, eyeglasses, contact lenses, and diabetic glucose-monitoring supplies.

Q: Can I rely on this letter for my own business?
A: Not directly. This is a General Information Letter, which the Department itself describes as non-binding and not a statement of Department policy — it merely points the requester (and readers) to the relevant regulation. A taxpayer wanting a binding answer for their own specific product and facts would need a Private Letter Ruling.

Citations and references

• 86 Ill. Adm. Code 130.311 (taxability of drugs, medicines, medical appliances, and grooming/hygiene products)
• 2 Ill. Adm. Code 1200.110 (procedures for Private Letter Rulings)
• 2 Ill. Adm. Code 1200.120 (nature and non-binding effect of General Information Letters)

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-17-0022-gil.pdf

Original ruling text

ST 17-0022-GIL 06/15/2017 FOOD, DRUGS & MEDICAL APPLIANCES
This letter discusses the rules regarding the taxability of drugs and medical appliances. See
86 Ill. Adm. Code 130.311. (This is a GIL.)

June 15, 2017

Dear Xxxxx:
This letter is in response to your letter, 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:
I am in the process of developing a small business focused on breastfeeding products.
I am writing to confirm the tax rate for some of the products as they may be taxed at the
1% rate. I will need to know if these products are taxed at the 1% rate:
Breast pumps
Breast pump parts
Herbal lactation supplements to increase milk supply
Lactation cookies to increase mild supply
Breast shields
Breast shells
Nipple cream for sore nipples/nipple rash
Pumping/Nursing bras
Gel pads for sore nipples
If you could please respond via email, mail or by phone that would be appreciated! My
ADDRESS. My email is EMAIL.COM. My phone number is ###.
DEPARTMENT’S RESPONSE:

ST 17-0022-GIL
Page 2

All gross receipts from sales of tangible personal property in Illinois are subject to Retailers’
Occupation Tax unless an exemption is specifically provided. Medicines and medical appliances are
not taxed at the basic State rate of 6.25% plus applicable local taxes. These items are taxed at a
reduced State rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.311, Drugs,
Medicines, Medical Appliances and Grooming and Hygiene Products. Items subject to this lower tax
rate include prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics, for human use.
A medicine or drug is defined as any pill, powder, potion, salve, or other preparation for human
use that purports on the label to have medicinal qualities. A written claim on the label that a product
is intended to cure or treat disease, illness, injury or pain, or to mitigate the symptoms of such
disease, illness, injury or pain constitutes a medicinal claim. See 86 Ill. Adm. Code 130.311 for
examples of medicinal claims.
A medical appliance is an item that is used to directly substitute for a malfunctioning part of the
human body. Included in the exemption as medical appliances are such items as artificial limbs,
dental prostheses and orthodontic braces, crutches and orthopedic braces, wheelchairs, heart
pacemakers, and dialysis machines (including the dialyzer). Corrective medical appliances such as
hearing aids, eyeglasses and contact lenses qualify for 1% rate. Moreover, generally, home glucose
monitors, test strips and related supplies used to treat human diabetes also qualify for the 1% State
rate of tax. See subsection (d) of 86 Ill. Adm. Code 130.311.
Based on the items listed in your letter, it does not appear that any directly substitute for a
malfunctioning part of the human body and, thus, would not qualify for the 1% rate. With respect to
the cream you inquired about, we cannot make a determination about the rate without more
information regarding how the product is used and without examining the claims made on the product
label. Please apply the above referenced regulation to the items you listed in order to determine the
appropriate tax rate.
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,

Debra M. Boggess
Associate Counsel

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