Sales Tax

ARE PHYSICIANS REQUIRED TO CHARGE SALES TAX FOR NUTRITIONAL SUPPLEMENTS, ORTHOTICS, AND OTHER MEDICAL APPLIANCES? (Changes Effective 1/1/2026)

Yes, for some. The State of Illinois imposes sales tax on a seller’s receipts from sales of tangible personal property for use or consumption. In fact, physicians who sell taxable products must collect sales tax from patients and pay it to the Illinois Department of Revenue (DOR). There are two different categories of items typically sold in chiropractic practices that must be considered when determining sales tax responsibilities:

• Orthotics and other medical appliances and supplies, and
• Nutritional supplements (changes beginning January 1, 2026):
  • Labeled with medicinal claims, and
  • Not labeled with medicinal claims.

Some physicians mistakenly believe that they are exempt from paying Illinois sales tax if they have paid tax to the seller who provided the supplements, orthotics, or appliances. These payments do not relieve the physician’s obligation to the State of Illinois.  To avoid paying sales tax to the supplier and follow Illinois law as required, physician sellers must register with the Illinois Department of Revenue (DOR) as a retailer. Access the online registration form here. 

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Once you have completed your registration and obtained your reseller certificate, you can provide that document to the supplier and avoid paying sales tax at the time of your wholesale purchase.  However, the doctor must collect the appropriate tax from the patient at the time of sale and remit the tax to DOR. 

Orthotics and Medical Appliances – 1% Rate To Remain In Effect

Orthotics and other medical appliances are taxed at 1% rate in Illinois because they fall under the state’s definition of qualifying medical items that are intended to correct or treat human physical disabilities. This reduced rate is outlined in Illinois tax law to ensure that essential medical devices remain more affordable for consumers. However, while the state applies this low rate uniformly, municipalities and counties may impose additional local sales taxes, which can increase the total tax rate applicable at the point of sale, depending on where the practice is located.

This sales tax status will continue to remain in effect after January 1, 2026. In other words, you are still required to collect sales tax 2026 and beyond for orthotics and other medical appliances.

Nutritional Supplements (Changes Beginning January 1, 2026)

Effective January 1, 2026, the State of Illinois will eliminate the 1% state sales tax on grocery items. Some, but not all, vitamins and supplements are considered grocery items that will no longer be subject to the 1% state sales tax.

For chiropractic offices that sell nutritional supplements or vitamins, the tax treatment will depend on how those products are labeled and marketed.

According to the Illinois Department of Revenue (IDOR), nutritional supplements and vitamins that do not make any medicinal or health claims on the label will qualify as groceries and therefore become exempt from the state’s 1% sales tax beginning in 2026.

By contrast, supplements or vitamins that include health claims or are marketed for specific therapeutic use will continue to be taxed at the 1% rate (Illinois state portion) as qualifying drugs or medical appliances. In these cases, the repeal of the grocery tax will not apply.

1. Use the following to help determine the taxable status of your supplements:
   • Does the label claim that it “is intended to cure or treat disease, illness, injury, or pain or to mitigate the symptoms of such disease, illness, injury or pain?”
   • For example (this is not an exhaustive list), does the label indicate the supplement:
     1. Is “medicated,”
     2. “Heals (a medical condition),”
     3. “Cures (a medical condition),
     4. ”Treats,
     5. Is “for relief (of a medical condition),”
     6. “Fights infection,”
     7. “Stops pain,”
     8. “Relieves muscular aches and pains,” or
     9. “Soothes pain.”

If the answer is YES to any of these, then the supplement/vitamin is subject to the 1% state sales tax. Do not consider it a grocery item.

2. If the answer is NO to all of those AND the label states that the product “is not intended to cure or treat disease, illness, injury, or pain or to mitigate the symptoms of such disease, illness, injury or pain,” then the supplement/vitamin is considered a grocery item and NOT subject to state sales tax.

Municipalities May Add Local Taxes To The State Tax  

Often, municipalities add a local tax to the state percentage. You must collect the full rate for your municipality. To determine if there are additional local sales tax collection requirements, please visit DOR here.  

Make sure that you review #1 and #2 above to select the appropriate sales tax rate for your nutritional supplements/vitamins for your municipality.

Additionally, sellers must keep an actual record of all sales and must report taxes at the applicable rate, based on sales reflected in the records. Records must be maintained in sufficient detail to support all receipts reported for sales of supplements, orthotics, and other medical appliances. 

Sales Tax Form Filling Requirement

Lastly, chiropractic physicians who sell nutritional supplements, orthotics, and other medical appliances must file sales tax forms (ST-1) according to the schedule defined by DOR.