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Chicago City Wire

Tuesday, December 24, 2024

Chicago responsible for highest sales tax revenue in Illinois during July

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Director David Harris | Illinois Department of Revenue

Director David Harris | Illinois Department of Revenue

Chicago taxpayers paid the most in sales taxes per municipality in July, according to Illinois tax records.

In total, Chicago residents paid $73.7 million in sales taxes during July.

Chicago also ranked first in the Prairie State the month before, with $69.5 million spent in sales taxes.

The Municipal Sales Tax accounted for the largest share of sales taxes paid by Chicago residents in July.

In Illinois, Municipal Sales Taxes, typically set at 1%, are combined with the state sales tax of 5% and a county tax of 0.25%, resulting in a total state tax rate of 6.25%. These taxes vary at local level and are aimed at diverse municipal needs, like infrastructure and public services. The revenue generated from these taxes is destined to fund local government operations, public safety, education, and community development projects.

As of 2021, Illinois was the highest taxed state in the US. A study from Wallet Hub found Illinois taxes were 39.83% higher than the national average.

Illinois governor J. B. Pritzker is accused of adding more than $5.2 billion in new or higher taxes since coming into power in early 2019. As a business owner, he has a fortune of more than $3 billion, largely based on his family's wealth and connections.

Composition of Sales Tax Revenue in Chicago in July
Municipal Sales Tax [47.2%]Municipal Home Rule Sales Tax [44.9%]Chicago Home Rule Use Tax [5.4%]Chicago Home Rule Soft Drink Tax [1.7%]Municipal Automobile Renting Tax [0.4%]Prepaid Wireless E911 Surcharge Tax [0.4%]Private Vehicle Municipal Home Rule Sales Tax [0.2%]

Sales Taxes Collected in Chicago in July
Type of TaxAmount Collected in Month% Change From Previous Month
Municipal Sales Tax$34,752,0965.8
Municipal Home Rule Sales Tax$33,068,7827.9
Chicago Home Rule Use Tax$3,944,3364
Chicago Home Rule Soft Drink Tax$1,217,2686.4
Municipal Automobile Renting Tax$302,653-53.4
Prepaid Wireless E911 Surcharge Tax$301,11010.2
Private Vehicle Municipal Home Rule Sales Tax$118,32315

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