Chicago sales tax guide
Shopping in Chicago means paying one of the higher combined sales tax rates in Illinois: 10.25%, against a statewide average combined rate of 8.83%. Among the 30 major US cities we track, Chicago ranks 2 by combined rate. This guide shows how the rate is built and what it adds to real purchases.
How the Chicago rate is built
6.25% state + 1.75% Cook County + 1.25% city + 1.00% RTA transit tax — for years the highest combined rate of any major US city. Illinois eliminated its 1% state grocery tax in 2026, though many municipalities adopted their own.
No single government sets the 10.25% figure. The state of Illinois sets the base rate of 6.25%, and county, city and special-district taxes stack on top of it. That stacking is why the rate can change across a city boundary — and why the address of the sale, not the seller's home address, decides the tax on most transactions.
What the rate does to real purchases
| Purchase | Tax at 10.25% | Total |
|---|---|---|
| $25 purchase | $2.56 | $27.56 |
| $100 purchase | $10.25 | $110.25 |
| $500 purchase | $51.25 | $551.25 |
| $1,000 purchase | $102.5 | $1,102.5 |
| $10,000 purchase | $1,025 | $11,025 |
| $35,000 car (where vehicles are taxed at sale) | $3,587.5 | $38,587.5 |
Groceries: Groceries were long taxed at a reduced 1% state rate; Illinois repealed that state grocery tax effective 2026, though some municipalities re-adopted a local one — check locally. Prepared food and restaurant meals are taxed at the full rate in most jurisdictions, even where groceries for home consumption are exempt or reduced.
Chicago vs other major US cities
Chicago is the Illinois city we track in detail. Set against the extremes of the 30-city dataset (average 7.93%), its position is clear:
| City | Combined rate | Tax on $1,000 |
|---|---|---|
| Chicago (this guide) | 10.25% | $102.5 |
| Seattle — among the highest | 10.35% | $103.5 |
| Portland — among the lowest | 0% | $0 |
| Louisville — among the lowest | 6% | $60 |
What this means in Chicago
On planned purchases the rate is a line item, not a rounding error: $1,025 on $10,000, which is $142 more than the same purchase at the Illinois average rate. Households near a lower-rate city boundary sometimes route vehicles, appliances and furniture purchases accordingly; on weekly spending, the difference is a few dollars a month and rarely worth a trip.
Selling in Chicago
If your business delivers into Chicago, the rate your customer pays is generally the combined rate at their address. Once your Illinois sales pass the state's economic-nexus threshold you must register, collect and remit — the threshold and filing basics are covered on the Chicago sales tax page, and the statewide picture is in the Illinois tax guide.
Sales tax · combined rate
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
Chicago sales tax FAQs
What is the sales tax rate in Chicago?
The combined sales tax rate in Chicago is approximately 10.25%, made up of the Illinois state rate plus county, city and district taxes. 6.25% state + 1.75% Cook County + 1.25% city + 1.00% RTA transit tax — for years the highest combined rate of any major US city. Illinois eliminated its 1% state grocery tax in 2026, though many municipalities adopted their own.
How much tax do I pay on a $100 purchase in Chicago?
At 10.25%, a $100 taxable purchase in Chicago carries about $10.25 in sales tax, for a total of $110.25. On $1,000 the tax is $102.5; on $10,000 it is $1,025.
Why is the Chicago rate different from the rest of Illinois?
Sales tax is stacked: the state sets a base rate and local governments add their own. Chicago adds local layers that bring the combined rate to 10.25%, compared with a statewide average combined rate of about 8.83% — a gap of 1.42 points.
How does Chicago compare with other US cities?
Chicago ranks 2 of the 30 major cities in our dataset by combined rate (dataset average 7.93%). The highest is Seattle at 10.35% and the lowest is Portland at 0%. Against the all-state average combined rate of 6.61%, Chicago is 3.64 points higher.
Are groceries taxed in Chicago?
Groceries were long taxed at a reduced 1% state rate; Illinois repealed that state grocery tax effective 2026, though some municipalities re-adopted a local one — check locally.
Where can I verify the exact rate for a Chicago address?
The 10.25% figure is the typical combined rate inside city limits; district taxes can shift it block by block. Verify the rate for a specific address with the Illinois Department of Revenue before a major purchase or a filing.
Reviewed by Tahir Shehzad, ACMA · State tax data reviewed November 2026 against official sources — see our Methodology and Editorial Policy. Figures are educational estimates, not tax or financial advice. For a filing decision, confirm with the Illinois Department of Revenue.