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Chicago City Wire

Thursday, May 1, 2025

Chicago responsible for highest sales tax revenue per muncipality in Illinois during February

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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 February, according to Illinois tax records.

In total, residents paid approximately $70.1 million in sales taxes during that month.

Chicago also ranked first in the Prairie State the month before, with just under $83 million spent in sales taxes.

The largest share of sales taxes paid by Chicago residents in February came from the Municipal Sales Tax.

In Illinois, municipal sales taxes, usually set at 1%, are added to the state sales tax of 5% and a county tax of 0.25%, resulting in a combined state tax rate of 6.25%. These taxes can vary locally and are used to address municipal needs such as infrastructure, public services, and community development. The revenue generated is destined to fund local government operations, public safety, education, and other community projects.

A 2025 WalletHub study found that Illinois has the highest overall taxes in the U.S., with rates more than 50% higher than the national average. The study estimates that a median household in Illinois pays an effective tax rate of 16.58%, or about $13,099 per year.

Composition of Sales Tax Revenue in Chicago in February

Municipal Sales Tax [49.7%]Municipal Home Rule Sales Tax [43.1%]Tax Revenue <5% [7.1%]

Sales Taxes Collected in Chicago in February
Type of TaxTotal Amount Collected% Change From Previous Month
Municipal Sales Tax$34,877,816-13.4%
Municipal Home Rule Sales Tax$30,226,534-17.9%
Chicago Home Rule Use Tax$3,176,896-21%
Chicago Home Rule Soft Drink Tax$1,206,7706.2%
Municipal Automobile Renting Tax$271,713-25.5%
Prepaid Wireless E911 Surcharge Tax$256,890-14.2%
Private Vehicle Municipal Home Rule Sales Tax$98,52113.5%

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