Chicago, Illinois Sales Tax 2026

The City of Chicago is located in Cook County, Illinois. Chicago sales tax rate is 10.25%.

The total sales tax rate in Chicago comprises the Illinois state tax, the sales tax for Cook County, and any applicable special or district taxes. The city also imposes an additional sales tax of 1.25%. The table below provides a breakdown of the sales tax rate by jurisdiction.

Combined Sales Tax Rate	10.25%
Illinois	6.25%
Cook County	1.75%
Chicago	1.25%
District / Special Tax	1.00%

Chicago Sales Tax Calculator

Item Cost (USD)

Street Address

City

ZIP Code (required)

State

Your Combined Sales Tax Rate is

0.00%

Sales tax amount = N/A

State 0.00%

County 0.00%

City 0.00%

District(s) 0.00%

The TaxHero sales tax calculator provides a combined sales tax rate based on a full address lookup. A complete address ensures precision since ZIP codes may cross different tax jurisdictions. Results are for reference and may need additional context for compliance. Contact us today for a demo and learn how TaxHero can support your business.

Who Needs to Collect Sales Tax in Chicago, Illinois?+

Home to the world’s first skyscraper, Chicago, Illinois, is a bustling hub for businesses with ambitious growth plans.

In Chicago, businesses are required to collect sales tax if they have a sales tax nexus in Illinois and sell to Cook County residents or to a small portion of DuPage County. This rule applies whether you are selling remotely or have a physical location within Chicago.

What Creates Sales Tax Nexus in Chicago, Illinois?+

A sales tax nexus is created based on your business’s significant presence in a state. Two types of sales tax nexus determine your business’s presence in a state: physical nexus and economic nexus.

Physical Nexus

A physical nexus is established by having a substantial physical presence or engaging in enough taxable sales activities within a state. Several factors determine a physical nexus in Illinois.

Physical Location: This means having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
Inventory in the State: This applies to situations where you store products within the state, whether it’s done via a third-party fulfillment center or 3PL (such as Amazon FBA) or an online marketplace.
Business Representatives: Having employees, independent contractors, agents, or other representatives operating within the state on your behalf.
Affiliate Nexus: You are considered to have a business presence in Illinois if you sell parallel products under a similar name as your affiliate partner in Illinois and pay them a commission on sales. This rule applies if your total sales in Illinois exceed $10,000 over the previous four quarterly periods.
Presence at Trade Show: Out-of-state vendors selling at more than 2 Illinois trade shows during the preceding 12-month period are subject to state and local sales tax. This rule is declared in the Illinois Administrative Code.

Economic Nexus

Economic nexus is established based on two common factors. First is your business’s total sales revenue, and second is the number of transactions you’ve had within the state. In Illinois, the economic nexus threshold is:

$100,000 in gross revenue

On January 1, 2026, Illinois removed the 200-transaction economic nexus threshold. This means you only have to meet the total sales revenue threshold to create an economic nexus in Illinois.

To read a comprehensive list of all sales tax rules in Illinois, you may visit the Illinois Department of Revenue’s “Sales & Use Taxes” webpage.

What are Taxable and Non-Taxable Products in Chicago, Illinois?+

Every state has different rules when it comes to the taxability of goods and services. In Chicago, Illinois, there is a variety of goods that are subject to sales tax and a few that are exempt. Check the table below for reference:

PRODUCT	TAXABLE	EXEMPT
Tangible Products	Clothing Jewelry Furniture Cosmetics Electronics Home Goods Medical Devices Prescription Medications Personal Hygiene Products Retail Leases of Certain Forms of Tangible Personal Property (TPP) Groceries – While the statewide grocery sales tax has been eliminated, a local 1% sales tax still applies to groceries in Chicago and other Illinois cities.	Building Materials Feminine Hygiene Products Newspapers and Magazine Retail Leases of Motor Vehicles, Watercraft, Aircraft, and Semitrailers
Services	All service-based transactions are generally not taxable in Illinois.	Advertising Services Professional Services Cleaning Services
SaaS and Digital Products	Local Amusement Tax – While SaaS and Digital Products are generally not taxable within the state, the City of Chicago has a local 10.25% Amusement Tax for streaming and video game services. Local SaaS Sales Tax – Personal Property Lease Transaction Tax (PPLT)	n/a
Shipping and Handling	Shipping and Handling charges are generally not taxable in Illinois.	Shipping and Handling charges in Illinois are non-taxable if the following conditions are met: The goods are separately listed on the invoice or contract If listed separately, the seller must provide pickup or free delivery options that allow the buyer to opt out of shipping and handling charges

For in-depth guidance on taxabilities and exemptions on goods and services, read The Ultimate Guide to Sales Tax in Illinois.

How to Get a Sales Tax Permit in Chicago, Illinois?+

Once you’ve established a sales tax nexus in Chicago, Illinois, your next step is making sure you stay compliant by registering your business for a sales tax permit, also known as a seller’s permit or a business license in other states.

To get a sales tax permit in Chicago, follow our step-by-step guide:

Step 1: Prepare the following necessary information and documents:
- Business Identification Information: Legal business name, physical address, mailing address
- Business Entity Structure (i.e., sole proprietorship, partnership, Subchapter S Corp., corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of owners, partners, or officers
- Business Activity Details: Date & State of Incorporation, start date with the state of Illinois (nexus start date), Estimated Monthly Sales Tax Liability in Illinois,
- NAICS Code
Step 2: Register your business online for free through the MyTaxIllinois website.
Step 3: Click the “Register a New Business (Form REG-1)” option to begin your registration process.
Step 4: Complete the registration process until your account is fully set up.

After receiving your Illinois sales tax permit, you must keep it displayed at all times in your business’s physical locations. Renewal is generally automatic for businesses that are actively compliant with the Illinois Department of Revenue.

How Do You File and Remit Sales Tax in Chicago, Illinois?+

After registering your business in Chicago, Illinois, your next step is filing and remitting sales tax returns on time. But before filing your sales tax returns, you must know the filing schedule assigned to you by the state.

To begin filing and remitting your sales tax returns in Illinois, follow our step-by-step guide:

Step 1: Prepare your ecommerce sales tax data (e.g., Taxes Report from Shopify)
Step 2: Go to the MyTaxIllinois website and log in using your account credentials.
Step 3: Once logged in, click “File a Return” inside your Sales and Use Tax account section.
Step 4: Choose the correct filing period. After that, select “File Now”
Step 5: Complete the required fields and enter all data based on your sales tax report.
Step 6: Review your submitted data and then click “Next”
Step 7: Claim any applicable discounts and proceed until you reach the payment page.
Step 8: Complete your payment and re-enter your password to confirm the transaction.
Step 9: Once your return submission and payment are finalized, keep a copy of the confirmation page for recordkeeping purposes.

If your business engages in sales of Food and Beverages within the MPEA District of Chicago, you must also file the Form ST-4 separately. The Form ST-4 is the Metropolitan Pier and Exposition Authority Food and Beverage Tax Return.

NOTE: Late filings result in penalties and fees. Always stay on schedule to avoid any unwanted fines. If you’re filing your returns on time, you can be eligible for a retailer’s discount.

Chicago District and Special Tax Rates+

If you make retail sales in Illinois subject to the state sales tax from a business located in a taxing district, district sales tax is generally due on your sales of tangible personal property. To help you identify the correct sales tax rate in Chicago, you may look up the sales tax rate by address and ZIP code in our calculator.

Chicago Finance Department Contact Information+

State: Illinois Department of Revenue

City: Chicago Finance Department

Contact: 312.744.2204

Popular ZIP codes in Chicago, Illinois+

60608 60614 60617 60618 60623 60625 60632 60639 60647 60657

Frequently Asked Questions+

1. Why is Chicago sales tax so high?

The sales tax in Chicago, Illinois, is so high due to a variety of factors. Funding essential public services like pension liabilities, public transit, and structures strongly relies on the city’s sales tax revenue.

The city lacks a broader tax base and has also faced budget shortcomings due to increased taxes on consumer goods, such as:

Alcohol
Rideshares
Grocery bags
Online gaming

While the sales tax remains high in Chicago, the state of Illinois has removed the statewide grocery sales tax as of January 1, 2026.

Need help with sales tax compliance? Read: A Founder’s Guide to Sales Tax Compliance Outsourcing

2. Is there a 11.75% tax in Chicago?

Yes, there is a 11.75% tax in some downtown Chicago areas. This tax rate is due to the combined tax on restaurant meals and food beverage taxes, applicable to places such as the Loop, Navy Pier, McCormick Place, and airports.

Here’s the detailed breakdown for your reference:

Illinois State: 6.25%
Cook County: 1.75%
Chicago City: 1.25%
Chicago Restaurant Tax: 0.50%
Regional Transportation Authority (RTA) Tax: 1.00%
MPEA District Food and Beverages Tax: 1.00%
- Combined Sales Tax Rate = 11.75%

3. Is Chicago a high tax state?

Yes, Chicago, Illinois, is considered a high tax state when accounting for the other tax types it imposes. For starters, Chicago alone has a high combined sales tax rate of 10.25%. Additionally, the state of Illinois also imposes other taxes, such as individual income tax, property tax, and more.

Having Trouble Navigating Chicago, Illinois Sales Tax?

Skip the hassle and let TaxHero manage your sales tax in Chicago, Illinois.

From tracking your nexus, registering your business, and filing your sales tax returns, we do it all for you so you can keep focusing on growing your business.

Discover how TaxHero can support your business and ensure you stay compliant nationwide, book a free demo today!