Taxes

Food & Beverage Tax
The village levies a one percent tax on the sale of prepared food and beverages. All retail businesses are required to submit a completed Food and Beverage Tax Registration Form prior to conduction business.  

The Food and Beverage Tax is due monthly. Payment is due to the village no later than the 20th of each month (or the first business day following a weekend or holiday). Filing after the due date will result in a late payment penalty equal to five percent of the unpaid tax. Additional information is available here. 

Hotel / Motel Tax
The village levies a six percent tax on all hotel accommodations that are less than 30 days. Additional information is available here.

Sales Tax
The general merchandise sales tax rate for Cook and Lake County is 9% and 8% respectively. The sales tax rate on qualifying food and drugs is 2.25% in Cook County and 1.75% in Lake County. The village receives one percent of the state's base sales tax rate and an additional one percent Home Rule sales tax.

In addition, the tax rate on food and beverages sold at restaurants in the Cook County portion of Buffalo Grove is 10% (e.g. 9% for sales tax and 1% for food and beverage tax). In the Lake County portion of Buffalo Grove, the total tax rate on food sold at restaurants is 9% (e.g. 8% for sales tax and 1% for food and beverage tax).

Real Estate Transfer Tax
The amount of tax is $3 per $1,000. Date of closing and forwarding address is required at time of purchase. Please be advised that stamps will not be issued if there are any delinquent charges for water service, outstanding fines or fees, or other debts owed to the village.

The Real Estate Transfer Tax Declaration Form should be signed by at least one of the sellers or guarantors, or by their attorney, agent, or broker. The form and fees must be submitted by mail and when approved, will be returned by mail if requested. The name of a contact for questions and a self-addressed, stamped enveloped should be included with the Declaration Form. Please allow up to five business days for processing.