Credit card processing and merchant services in Naperville, IL
Naperville adds its own taxes to Illinois sales tax: a 0.75% home rule sales tax, and a 1% food and beverage tax that since January 2026 reaches carryout and drive-thru restaurants too.
Naperville restaurants have a new tax line to check this year. The City's 1% food and beverage tax applies to food and drinks, alcoholic or not, and since January 1, 2026 it also covers drive-thru and carryout businesses with no on-premise dining. Downtown businesses add another 0.75%, for 1.75% in all. This one isn't on your state return: you file it with the City by the 20th of the month after you collect it, and paying on time earns a 2% discount.
Retail sales carry a separate city layer. Naperville's 0.75% home rule sales tax applies to general merchandise and to food for immediate consumption, while groceries, auto sales and health care items are exempt. The State of Illinois collects it along with the rest of your sales tax and pays it to the City.
So a Naperville restaurant meal carries both: the sales tax rate for the address, which already includes the home rule tax, plus the food and beverage tax. Program the second one as its own line on your POS terminals so the monthly total for the City's return is one report away.
The address matters for another reason. Naperville straddles DuPage and Will counties, split at 87th Street according to the City of Naperville, and on August 1, 2026 the Northern Illinois Transit Authority tax rose 0.25% in both. Look up each location in IDOR's Tax Rate Finder instead of copying a rate from another store.
Illinois hasn't capped surcharges, and two state payment laws are still ahead: the interchange law in July 2027 and the cash-acceptance law in January 2028. The Illinois page tracks both.
Naperville had 153,114 residents in the Census Bureau's July 1, 2025 estimate, 2.4% more than in April 2020. We work with Naperville restaurants and shops remotely on interchange-plus pricing, and a free statement review shows what each card type costs you now.
Rules that matter in Naperville
Food and beverage tax
Businesses that sell food and beverages in Naperville, alcoholic and non-alcoholic, collect the City's 1% food and beverage tax. Since January 1, 2026, that includes drive-thru and carryout businesses without on-premise dining facilities. Businesses in the downtown area add 0.75%, for a total of 1.75%.
Returns and payment are due to the City by the 20th of the month after the tax was collected, with a copy of your Illinois ST-1 or ST-2 return or an internal sales report. Paying on time earns a 2% discount, and late filing or payment brings a 5% penalty. Keep records for three years after the tax was due.
Sources: City of Naperville, Food and beverage tax; City of Naperville, Downtown business food and beverage tax return form (PDF)
Home rule sales tax
Naperville's 0.75% home rule sales tax applies to general merchandise and food for immediate consumption. Auto sales, groceries and health care items are exempt. The State of Illinois collects the tax and pays it to the City.
Source: City of Naperville, Retail and home rule sales taxes
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Common questions
Do Naperville carryout restaurants collect the food and beverage tax?
Yes, since January 1, 2026. The City's 1% food and beverage tax now covers drive-thru and carryout businesses with no on-premise dining, not only sit-down restaurants. Downtown businesses collect 1.75%. Set it up as its own tax line so the monthly return to the City, due by the 20th, is easy to fill in.
Who collects Naperville's home rule sales tax?
The State of Illinois, which then pays it to the City. The 0.75% tax applies to general merchandise and food for immediate consumption, and groceries, auto sales and health care items are exempt. It's separate from the food and beverage tax, which you file with the City yourself.
What sales tax rate applies at my Naperville address?
Check IDOR's Tax Rate Finder for the exact address. Naperville straddles DuPage and Will counties, the transit tax rose 0.25% in both on August 1, 2026, and the City's 0.75% home rule tax applies to general merchandise. The finder gives the rate for that address, so you don't have to add up the pieces yourself.
Will Illinois' cash law affect a card-only Naperville cafe?
Starting January 1, 2028, it will if staff take payments in person. The Retail Cash Payment Act requires accepting cash for sales under $500 and bars 'no cash' signs, though bills over $20 can be refused. Until then, we found no state law requiring it, so you have time to plan the change.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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