Chicago Sales Tax Guide 2025 (Illinois)
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This 2025 guide to Chicago sales tax breaks down important sales tax rates, local taxes, exemptions, and filing deadlines for Illinois businesses selling in Chicago or out-of-state businesses selling to customers in Chicago.
For more general info on Illinois sales tax, take a look at our 2025 Illinois Sales Tax Guide.
Chicago Sales Tax Rate (Illinois)
In 2025, Chicago, Illinois, imposes a total sales tax rate of 10.25%, comprising state, county, city, and special district taxes. However, certain areas within Chicago may have additional special taxing districts, leading to variations in the total sales tax rate.
| Tax Component | Rate |
|---|---|
| Illinois State Tax | 6.25% |
| Cook County Tax | 1.75% |
| Chicago City Tax | 1.25% |
| Regional Transportation Authority (RTA) Tax | 1.00% |
| Total Sales Tax Rate | 10.25% |
To learn more about Illinois sales tax on clothing, take a look at Kintsugi's easy guide: Does Illinois Have Sales Tax on Clothing in 2025? Key Information for Businesses.
Table: Chicago Special Tax Districts: 2025 Sales Tax Variations
Certain areas in Chicago impose additional sales taxes, leading to higher total rates. Special Service Areas (SSAs) have flexible additional tax rates that support local infrastructure, public services, or economic development projects.
| Special Tax District | Additional Tax | Total Sales Tax Rate | Affected ZIP Codes / Locations |
|---|---|---|---|
| Metropolitan Pier & Exposition Authority (MPEA) District | +0.75% | 11.00% | Downtown Chicago (ZIPs: 60601, 60602, 60603, 60604, 60605, 60606, 60607, 60610, 60611, 60642, 60654, 60661) |
| Special Service Areas (SSAs) | Varies | 10.25%+ | Selected neighborhoods implementing community-improvement taxes |
To learn more about Illinois sales tax on SaaS and digital products, take a look at Kintsugi's easy guide: Is SaaS Taxable in Illinois? Key Insights for Tech Companies.
Table: Chicago Restaurant Tax in 2025
As of February 2025, dining at restaurants in Chicago incurs a combined sales tax rate of 11.75% in certain areas, particularly downtown and surrounding neighborhoods. This rate comprises the standard sales tax and additional restaurant-specific taxes.
Therefore, in these specified areas, the total tax on restaurant meals amounts to 11.75%. In other parts of Chicago where the MPEA tax does not apply, the combined tax rate on restaurant meals is 10.75%.
- Chicago Restaurant Tax: Effective January 1, 2020, the City of Chicago implemented tax increases by raising its restaurant tax rate to 0.50%.
- Metropolitan Pier and Exposition Authority (MPEA) Tax: An additional 1.00% tax applies to food and beverage sales with the MPEA district, which includes downtown Chicago and surrounding areas.
| Tax Component | Rate |
|---|---|
| Standard Sales Tax | 10.25% |
| Illinois State Sales Tax | 6.25% |
| Cook County Sales Tax | 1.75% |
| Chicago City Sales Tax | 1.25% |
| Regional Transportation Authority (RTA) Tax | 1.00% |
| Additional Restaurant Taxes | 1.50% |
| Chicago Restaurant Tax | 0.50% |
| Metropolitan Pier and Exposition Authority (MPEA) Tax | 1.00% |
| Total Combined Tax Rate | 11.75% |
For the most accurate and up-to-date information, consider using Kintsugi's sales tax automation platform and integrations or consult the Illinois Department of Revenue or the City of Chicago's official website.
To learn more about Illinois sales tax exemptions, take a look at Kintsugi's easy guide: How 2025 Illinois Sales Tax Exemption Benefits Your Business.
Chicago IL Sales Tax Calculator
A retailer in Chicago, Illinois, sells an item priced at $500. The total sales tax rate is 10.25%, comprising state, county, city, and special district taxes. A customer purchasing a $500 item in Chicago would pay $51.25 in sales tax, bringing the final total price to $551.25.
| Tax Type | Rate | Calculation | Tax Amount |
|---|---|---|---|
| Illinois State Tax | 6.25% | $500 × 6.25% | $31.25 |
| Cook County Tax | 1.75% | $500 × 1.75% | $8.75 |
| Chicago City Tax | 1.25% | $500 × 1.25% | $6.25 |
| Special District Tax | 1.00% | $500 × 1.00% | $5.00 |
| Total Combined Tax | 10.25% | $31.25 + $8.75 + $6.25 + $5.00 | $51.25 |
| Final Total Price | $500 + $51.25 | $551.25 |
FAQ
What is the sales tax rate in Chicago, IL?
As of February 2025, the total sales tax rate in Chicago, Illinois, is 10.25%. Note that certain areas within Chicago may have higher sales tax rates due to additional special district taxes.
What is the Chicago restaurant tax?
As of February 2025, dining at restaurants in Chicago incurs a combined sales tax rate of 11.75% in certain areas, particularly downtown and surrounding neighborhoods. This rate comprises the standard sales tax and additional restaurant-specific taxes.
- Chicago Restaurant Tax: Effective January 1, 2020, the City of Chicago increased its restaurant tax rate to 0.50%.
- Metropolitan Pier and Exposition Authority (MPEA) Tax: An additional 1.00% tax applies to food and beverage sales with the MPEA district, which includes downtown Chicago and surrounding areas.
Therefore, in these specified areas, the total tax on restaurant meals amounts to 11.75%. In other parts of Chicago where the MPEA tax does not apply, the combined tax rate on restaurant meals is 10.75%.
How do you get a sales tax permit in Illinois?
Apply online through the MyTax Illinois website. You'll need business details, an EIN or SSN, and there is no registration fee.
When do I need to complete a sales tax registration in Illinois?
You must register before making taxable sales or meeting the economic nexus threshold ($100,000 in sales or 200 transactions).
What is the sales tax nexus threshold in Illinois?
In Illinois, the economic nexus threshold is $100,000 in gross sales or 200 separate transactions in the state within the previous 12 months.
Is Illinois part of the Streamlined Sales Tax (SST) program?
No, Illinois is not part of the Streamlined Sales Tax (SST) program. Businesses must ensure compliance with the state's independent sales tax rules and registration process.
What is considered "tangible personal property” in Illinois?
In Illinois, tangible personal property includes physical items that can be seen, weighed, measured, or touched, such as furniture, electronics, clothing, and vehicles. Some digital goods are also taxable.
When do I need to file sales tax returns in Illinois?
In Illinois, sales tax returns are due monthly, quarterly, or annually, based on sales volume. Monthly returns are due by the 20th of the following month.
Chicago Sales Tax Filing Steps
Who Needs to Collect Sales Tax in Chicago?
Sales tax collection in Chicago is required for businesses that meet the following criteria:
1. Physical Presence: Businesses with a store, office, warehouse, or employee in Chicago.
2. Economic Nexus: Out-of-state businesses exceeding $100,000 in Illinois.
Not sure if your business meets these criteria? Kintsugi’s Nexus Analysis Tool can help you determine your sales tax obligations.
What Is Taxable in Chicago?
In Chicago, Illinois, sales tax applies to:
1. Tangible personal property (e.g., electronics, clothing, furniture).
2. Certain services.
There are also exemptions for items like General Physical. Ensure you check with your state’s tax authority or consult Kintsugi for clarity.
How to File Sales Tax in Chicago
Here’s a step-by-step guide for filing your sales tax returns:
1. Register Your Business: Get a sales tax permit through the https://tax.illinois.gov/research/taxinformation/sales/rot.html.
2. Collect Sales Tax: Accurately calculate sales tax on taxable transactions.
3. File and Pay: Submit sales tax returns through https://tax.illinois.gov/research/taxinformation/sales/rot.html by the [state-specific deadline]—monthly, quarterly, or annually depending on your sales volume.
Kintsugi’s Automated Filing Service streamlines the process, ensuring accuracy and timeliness.
Common Challenges in Sales Tax Compliance
Businesses in Chicago often face these issues:
1. Tracking tax rate changes for city, county, and special districts.
2. Managing exemptions and resale certificates.
3. Reconciling returns for accurate filing.
Kintsugi’s AI-Driven Compliance Solution takes the guesswork out of sales tax, handling rate calculations, exemption management, and filing across all jurisdictions.
Why Choose Kintsugi for Sales Tax Compliance?
Kintsugi is more than a software solution—we’re your trusted partner in sales tax compliance. Here’s how we help:
1. Real-Time Rate Calculation across billing, payments, and e-commerce platforms.
2. Nexus Tracking to identify where you need to register and collect tax.
3. Automated Filing to save time and reduce errors.
4. Audit Support to give you peace of mind.
A direct-to-consumer brand, recovered over $200K in overpaid sales tax within their first month of switching to Kintsugi. Your business could be next.
Ready to Simplify Sales Tax Compliance in Chicago?
With Kintsugi, managing sales tax is effortless. Whether you're just starting out or scaling across multiple states, we have the tools to help you stay compliant and grow with confidence.
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Find Sales Tax Information for Other Cities in Illinois
Looking for sales tax rates and compliance details for other cities in Illinois? Check out our comprehensive table of sales tax information for cities across the state in the table below
| City | Sales tax rate |
|---|---|
| Aurora | 8.2 |
| Fox Valley | 8.2 |
| Harwood Heights | 11.5 |
| Elmwood Park | 11 |
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