# Illinois: Bourbonnais sets a 3% local cannabis tax from 1 January 2027

> From 1 January 2027, adult-use dispensaries in Bourbonnais pay a 3% municipal cannabis tax. That’s the highest rate a village can set. It comes on top of the existing state taxes.

- Published: 2026-11-07 (updated 2026-11-08)
- By: Neil Cartwright
- Places: Illinois, US

- Based on: [FY 2027-06, Municipal and County Cannabis Retailers' Occupation Tax Rate Changes](https://tax.illinois.gov/research/publications/bulletins/fy-2027-06.html), Illinois Department of Revenue (IDOR)
- Web page: https://www.greenark.io/articles/illinois-bourbonnais-imposes-a-local-cannabis-retailers-tax-from-1-january-2027

*From 1 January 2027, adult-use dispensaries in Bourbonnais pay a 3% municipal cannabis tax. That’s the highest rate a village can set. It comes on top of the existing state taxes.*

**In short**

- Bourbonnais (Kankakee County) will charge a Municipal Cannabis Retailers’ Occupation Tax of **3% of gross receipts** on adult-use sales made on or after 1 January 2027.
- Medical cannabis sales are excluded.
- Dispensaries pay the tax to the Illinois Department of Revenue (IDOR), not to the village.
- No county starts a new county cannabis tax on that date.

**What changed**

IDOR’s Informational Bulletin [FY 2027-06](https://tax.illinois.gov/research/publications/bulletins/fy-2027-06.html) lists Bourbonnais among the local governments with tax changes from 1 January 2027, but it doesn’t give the rate. The rate is in the village’s own [Ordinance No. 26-2559](https://library.municode.com/il/bourbonnais/ordinances/code_of_ordinances?nodeId=1451894), adopted on 8 September 2026. It adds Sec. 32-70(a) to the village code and sets the tax “at the rate of 3% of the gross receipts” from adult-use sales. Under state law (65 ILCS 5/8-11-23), a municipality can charge up to 3%, in 0.25% steps, so Bourbonnais has gone to the maximum.

**What this means**

A Bourbonnais dispensary’s adult-use sales will carry:

- the 6.25% state retailers’ occupation tax;
- the new 3% Bourbonnais cannabis tax;
- any local general sales taxes that apply at the store’s address;
- the cannabis purchaser excise tax (410 ILCS 705/65-10), which customers pay at 10%, 20% or 25% depending on the product and its THC level.

Cultivators also pay a 7% cultivation privilege tax further up the supply chain.

Take the lowest excise tier and leave out local general sales taxes, and cannabis taxes alone add up to 19.25% of the price (6.25% + 3% + 10%). The real total at a given store will be higher once its local sales taxes are added. Get the exact combined rate from the Tax Rate Finder (see below).

**What you need to do**

- **Who is affected:** adult-use dispensaries in the Village of Bourbonnais. Medical sales under the Compassionate Use of Medical Cannabis Program Act are excluded.
- **What changes and from when:** a new 3% municipal cannabis tax, for sales on or after 1 January 2027.
- **The numbers:** 3% municipal cannabis tax (Ordinance No. 26-2559, Sec. 32-70(a)), on top of the 6.25% state tax and any local sales taxes. Look up the combined rate for the store’s address in the [MyTax Illinois Tax Rate Finder](https://mytax.illinois.gov/?Link=TaxRateFinder) and select January 2027 rates.
- **Filing:** report and pay the tax to IDOR on Form CD-1. Businesses with more than one site also file Schedules CD-2 and CD-3. Returns are due by the 20th of the month after the reporting period.
- **Medical opt-in licences:** dispensaries that sell both medical and adult-use cannabis must report the two separately on Form CD-1. Only adult-use receipts carry the new tax.
- **Systems:** IDOR says dispensaries must update their registers and point-of-sale software for 1 January 2027. The ordinance lets retailers show the tax as a separate line on receipts.

**Where to check**

- **MyTax Illinois Tax Rate Finder:** [the rate lookup tool](https://mytax.illinois.gov/?Link=TaxRateFinder). Enter the dispensary’s address and select January 2027 rates. The Tax Rate Finder link inside IDOR’s bulletin points to a mistyped address and doesn’t work, so use this one.
- **Village of Bourbonnais Ordinance No. 26-2559:** [on Municode](https://library.municode.com/il/bourbonnais/ordinances/code_of_ordinances?nodeId=1451894) ([PDF](https://mcclibraryfunctions.azurewebsites.us/api/ordinanceDownload/19991/1451894/pdf)). It sets the 3% rate and the 1 January 2027 start date.
- **IDOR Informational Bulletin FY 2027-06:** [the bulletin](https://tax.illinois.gov/research/publications/bulletins/fy-2027-06.html) listing the January 2027 local changes.
- **IDOR cannabis taxes:** [state and local cannabis taxes, returns and forms](https://tax.illinois.gov/research/taxinformation/other/cannabis-taxes.html).

**Sources:** Village of Bourbonnais Ordinance No. 26-2559; IDOR Informational Bulletin FY 2027-06; 65 ILCS 5/8-11-23; 55 ILCS 5/5-1006.8; 410 ILCS 705/65-10; IDOR cannabis taxes page.

*This is general information, not legal, tax or financial advice. Check the ordinance and the Tax Rate Finder before changing registers or software.*

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Information, not legal advice. Check the primary source before relying on it. Source: Green Ark (www.greenark.io).