Key takeaway: Chicago’s combined sales tax is 10.5% as of August 1, 2026, and the city no longer charges the 1% local grocery tax.
Chicago’s combined sales tax went from 10.25% to 10.5% on August 1, 2026, when the regional transit tax rose a quarter point (Illinois Department of Revenue). On a $100 purchase, that’s 25 cents more than before.
Where the 10.5% goes
| Layer | Rate |
|---|---|
| State of Illinois | 6.25% |
| Cook County | 1.75% |
| City of Chicago | 1.25% |
| Regional transit tax | 1.25% |
| Total | 10.5% |
Source: Kintsugi rate table, as of September 2026.
The quarter-point increase is the transit piece, which went from 1% to 1.25% across Cook, DuPage, Kane, Lake, McHenry and Will counties. It comes from the transit funding law Gov. JB Pritzker signed in December 2025, and the money goes to the CTA, Metra and Pace. The Illinois Policy Institute estimates it will raise about $200 million in 2026.
What it adds up to
| Purchase | Tax at 10.25% | Tax at 10.5% |
|---|---|---|
| $100 | $10.25 | $10.50 |
| $500 | $51.25 | $52.50 |
| $1,000 | $102.50 | $105.00 |
Source: our calculation at the 10.25% and 10.5% combined rates.
Some spots go higher. A few Chicago ZIP codes and special districts, including parts of O’Hare, reach 11%, according to Kintsugi’s rate table.
Groceries and medicine
The transit increase also applies to qualifying groceries, medicines and medical supplies, which are taxed at a lower rate than general merchandise. Separately, Illinois ended its statewide 1% grocery tax on January 1, 2026 and let cities bring it back locally. Chicago did not. Mayor Brandon Johnson pushed to keep it, but City Council never approved his ordinance, according to the Daily Herald, and the city’s 2026 budget took effect without it (WTTW). Many suburbs did keep it, so the same cart of groceries can carry a little less tax on the Chicago side of the city line.
The smaller charges
- Checkout bags: 15 cents a bag since January 1, 2026 (League of Women Voters Chicago).
- Bottled water: 5 cents a bottle.
- Rideshare: an extra $1.50 on any ride that starts or ends in the city’s new downtown congestion zone (ABC7).
No city income tax
Chicago doesn’t charge a city income tax, which is a real advantage over New York. You pay only Illinois’ flat state income tax. For homeowners, the median Chicago homeowner property tax bill sent in August 2026 rose 3.2%, to $4,597, according to the Cook County Treasurer, per the Treasurer’s report covered by WTTW. Our property tax guide covers exemptions and appeals. That followed a bigger jump the year before, when the median Chicago bill rose to $4,457 (WBEZ).
Sources
- Illinois Policy Institute: 10.5% sales tax
- Kintsugi: Chicago sales tax by ZIP code
- WTTW: Chicago 2026 budget takes effect, grocery tax eliminated
- Daily Herald: more than half of Illinois communities enact a grocery tax
- League of Women Voters Chicago: consumer taxes
- ABC7: 2026 price increases
- WBEZ: property tax increases
- WTTW: 2025 property tax report