Tax Rate Changes as of January 2026

In accordance with the City Council's passage of the 2026 Revenue Ordinance on December 20, 2025, the following tax changes will be effective on January 1, 2026, unless otherwise noted below:

Personal Property Lease Transaction Tax

• The rate of the tax shall be 15%of the lease or rental price for all leases.

Motor Vehicle Lessor Tax

• The rate of the tax imposed upon the privilege of leasing motor vehicles within the city on a daily or weekly basis shall be $0.50per vehicle per rental period specified in the lease agreement.

Boat Mooring Tax

• The rate of the tax imposed shall be 23.25%of the mooring or docking fee.

• The rate of tax assessed to a not-for-profit corporation, as defined by 805 ILCS 105/101.80, shall be 7.00%of the mooring or docking fee.

Checkout Bag Tax

• The tax shall be imposed at the rate of fifteen cents ($0.15) per checkout bag sold or used in the City.

• Every store that remits or pays the tax shall be eligible to retain one cent ($0.01) per checkout bag sold or used, resulting in a net remittance or payment of fourteen cents ($0.14) per checkout bag sold or used. A wholesaler receiving such remittance or payment from a store shall be required to remit to the Department only the net amount of fourteen cents ($0.14) per checkout bag sold or used.

Ground Transportation Tax TNP Congestion Zones Surcharge

• For ground transportation vehicles used in the City to provide transportation network service by transportation network drivers:

• For every singleride, an additional $1.50 per vehicle per ride accepted for every such ride that includes a pickup or drop-off, or both, in a newly defined "Congestion Zone". This shall apply 7 days a weekfrom 6:00 a.m. to 10:00 p.m.
• For every sharedride, an additional $0.60 per vehicle per ride accepted for every such ride that includes a pickup or drop-off, or both, in a newly defined "Congestion Zone". This shall apply only on weekdays(M-F) from 6:00 a.m. to 10:00 p.m.

Social Media Amusement Tax

• The tax is imposed on social media businesses that collect consumer data on more than 100,000 Chicago consumers in a calendar year, based on the number of Chicago consumers from whom a social media platform business collects consumer data within a calendar month.

• The rate of the tax is $0.50 per the number of Chicago consumers per calendar month in excess of 100,000.

• The tax is payable monthly by the social media business by the 15th day of the following month, with tax returns filed annually. The first tax return will cover the period January 1, 2026 - June 30, 2026, with the due date for filing being August 17, 2026.

Internet and MobileSports Wagering Amusement Tax

• There is hereby imposed a tax on each primary sports licensee operating in the City. The rate of the tax shall be 10.25%of the adjusted gross sports wagering receipts from sports wagers that are placed within the City:

(1) at, or within a 5-block radius of, any of the following: a casino facility, racetrack facility, or sports facility where sports wagering is allowed under Section 4-156-968; or

(2) over the internet or through a mobile applicationas allowed under Section 4-156-968 and verified as having been placed within the City utilizing the internet wagering system requirements provided in Section 1900.1430 of the Sports Wagering Rules and the sports wagering system requirements provided in Section 1900.1450 of the Sports Wagering Rules.

• The tax is payable monthly by the primary sports licensee by the 15th day of the following month, with tax returns filed annually. The first tax return will cover the period January 1, 2026 - June 30, 2026, with the due date for filing being August 17, 2026.

Liquor Tax / Alcoholic Beverages Tax - Off Premises Consumption

• A tax is hereby imposed on the privilege of purchasing or using, in the City, alcoholic beverages purchased in a sale at retail for consumption off of the premiseswhere such alcoholic beverages are sold.

• The rate of the tax under this section shall be one and a half percent (1.5%) of the purchase price, exclusive of any other tax charged for such alcoholic beverages.

• Retail alcoholic beverage dealers shall collect the tax from the purchasers of alcoholic beverages for consumption off of the premises where such alcoholic beverages are sold.

• All Package Goods (1474) License Holders are required to collect and remit the 1.5% Liquor Tax to the Department of Finance. Payments are due monthly by the 15 th day of the following month, and tax returns are filed annually. The first tax return filing will cover the period of January 1, 2026 - June 30, 2026, with the due date for filing being August 17, 2026.

If you have any questions regarding this notice, please email us at [email protected] or call the Business Contact Center at (312) 747-4747