Starting Today, Illinois will usher in several new laws ranging from education requirements to a ban on small single-use plastic bottles in hotels. The state will also implement several new tax increases as part of the record $55.2 billion Fiscal Year 2026 State Budget, passed by progressive Democrats this spring.
New Taxes Taking Effect
Sports Betting Tax Increase
A per-wager tax of $0.25 for the first 20 million bets, doubling to $0.50 after that. DraftKings and FanDuel have already responded by raising costs for users.
Hotel Tax on Short-Term Rentals
Services like Airbnb and Vrbo are now subject to Illinois’ Hotel Operators’ Occupation Tax, meaning families trying to travel in-state will pay more out-of-pocket.
Tobacco Tax Hike
The wholesale tax on tobacco products jumps from 36% to 45%, another hit to consumers.
Noteworthy New Laws
Ban on Small Single-Use Plastics in Hotels
Signed into law last year, the Small Single-Use Plastic Act prohibits hotels from stocking hotel rooms with small, single-use plastic bottles containing personal care products like soap and shampoo. Guests must request the products now.
The law applies to hotels with 50 or more rooms but will expand to those with fewer than 50 rooms beginning January 1, 2026. Hotels found in violation will receive a written warning for a first offense and face fines of up to $1,500 for second and subsequent offenses.
Employment Data Reporting
Under Public Act 103-0304, when collecting and reporting data on employment records, state agencies must include specified data on persons who identify as non-binary or gender non-conforming.
Birth Certificate Access and Recognition
Two new laws expand access and recognition in vital records:
- Public Act 103-0682 waives fees for birth certificate requests made by the Office of the State Guardian.
- Public Act 103-0948, known as Liam’s Law, allows parents to request a certificate of birth for a stillbirth occurring at or after 20 weeks.
Climate Change Education in Schools
Beginning with the 2026–2027 school year, public schools must teach students about the environmental and ecological effects of climate change. Beginning July 1, the State Board of Education is tasked with developing instructional resources and professional development for educators, pending funding from lawmakers.
Insulin Cost Cap
The Access to Affordable Insulin Act lowers the out-of-pocket cap for insulin from $100 to $35. The law also enables participants to purchase insulin at post-rebate prices through a discount program.
Assisted Living Access
The Assisted Living and Shared Housing Act has been amended to expand eligibility for assisted living facilities to individuals requiring non-routine catheter care.
Opioid Overdose Prevention
Public Act 103-0845 requires state agencies to ensure opioid antagonists like Narcan are available and train staff in their use. The law also shields trained employees from civil liability under the Good Samaritan Act.
Language Access in Courts
Under Public Act 103-1056, foreign language interpreters for witnesses, self-represented litigants, and low-income individuals must be provided at no cost. Judges must now proactively ask if interpretive assistance is needed, with services available in at least 13 languages.
Sexual Exploitation and Prostitution
This new law changes several statutes related to sexual exploitation and prostitution. Most notably, it requires law enforcement to automatically seal records relating to a person’s Class 4 felony conviction for prostitution if that conviction is eligible for expungement. It requires law enforcement agencies to establish a new policy for officer conduct in a criminal investigation related to prostitution. It also changes several terms in the law: “juvenile prostitution” to “commercial sexual exploitation of a child”, “prostitute” to “person engaged in the sex trade”, and “juvenile prostitute” to “sexually exploited child”.