Starting July 1, Illinois is implementing several new laws and tax changes. These changes span various areas, including education, environmental policies, and fiscal measures. As part of the state’s $55.2 billion Fiscal Year 2026 budget passed by Democrats this spring, these initiatives aim to address multiple societal needs.
The state has introduced a new sports betting tax, with a per-wager fee set at $0.25 for the first 20 million bets, increasing to $0.50 thereafter. Companies like DraftKings and FanDuel have already adjusted their pricing in response. Additionally, short-term rental services such as Airbnb and Vrbo will now be subject to Illinois’ Hotel Operators’ Occupation Tax.
Tobacco products will see a wholesale tax increase from 36% to 45%. In the hospitality sector, the Small Single-Use Plastic Act bans hotels from providing small plastic bottles of personal care products in rooms. This law currently applies to hotels with 50 or more rooms but will extend to smaller establishments by January 1, 2026.
Public Act 103-0304 mandates that state agencies include data on non-binary or gender non-conforming individuals when collecting employment records. Birth certificate access and recognition have also been expanded under two new laws.
From the school year starting in 2026–2027, public schools are required to educate students about climate change effects. The State Board of Education is responsible for developing related instructional resources and training educators.
The Access to Affordable Insulin Act reduces the out-of-pocket cap for insulin from $100 to $35 and allows purchases at post-rebate prices through a discount program.
Eligibility criteria for assisted living facilities have been broadened under amendments to the Assisted Living and Shared Housing Act. Public Act 103-0845 ensures opioid antagonists are available at state agencies and requires staff training in their use while protecting trained employees under the Good Samaritan Act.
Language accessibility in courts is addressed by Public Act 103-1056, which mandates free foreign language interpreters for witnesses and low-income individuals during legal proceedings.
A new law modifies statutes concerning sexual exploitation and prostitution. It includes automatic sealing of certain prostitution-related records eligible for expungement and updates terminology used within legal texts related to these offenses.
