Chicago Sales Tax Calculator 2024

Whether you’re handling personal finances or managing a business, it’s important to be aware of sales tax and how it impacts your finances. Our team at Lewis.cpa has created a calculator tailored to provide accurate sales tax rates across Chicago’s diverse neighborhoods, helping you stay compliant and up-to-date. We make it simple and hassle-free!

How to Use Our Illinois Sales Tax Calculator

Our calculator is designed to be easy to use. Here’s a simple guide to finding your total sales tax:

1. Enter purchase amount: Start by entering the pre-tax price of your item.
2. Select a city: To ensure accuracy, select the city’s tax rate where the purchase will take place or where your business operates. The sales tax rate can vary across Chicago.
3. Review results: Our tool calculates the total sales tax amount, showing both the pre-tax and after-tax totals for easy reference.

What Is Sales Tax?

Let’s rewind and start with the basics. Sales tax is a mandatory charge that applies to the sale of certain goods and services. In Illinois, sales tax revenue helps fund state and local services, impacting everything from infrastructure to public safety. Unlike income tax, which is based on earnings, sales tax is applied at the point of sale. This means it's typically a fixed percentage of the purchase price.

Illinois Sales Tax Rates

For 2024, the Illinois state base sales tax rate is set at 6.25%. Additional taxes from Cook County, the city of Chicago, and the Regional Transportation Authority (RTA) bring the minimum combined rate in Chicago to 10.25%. Here’s how it breaks down:

• Illinois State rate: 6.25%
• Cook County rate: 1.75%
• Chicago City rate: 1.25%
• Regional transportation authority (RTA): 1.0%

This total combined Illinois sales tax rate of 10.25% is typical for most ZIP codes within Chicago, although certain areas may have rates as high as 11% due to specific local factors:

• Special district taxes: Certain areas within Chicago fall under special tax districts that impose additional sales taxes to fund local services.
• Additional municipal charges: Some neighborhoods may add extra municipal taxes to support community projects, city improvements, or economic development initiatives.
• Tourism and entertainment districts: Locations with a high concentration of hotels, restaurants, and entertainment venues often have additional taxes that fund tourism-related services.
• Public transportation and infrastructure levies: Taxes imposed by the RTA or other public authorities to maintain and expand transportation infrastructure can increase the combined rate in ZIP codes that public transit options serve. 
• School and park district contributions: Certain areas may include sales tax contributions directed toward local school districts or park districts, which can result in a slightly higher rate.
• Retailer-specific taxes: Some larger retail developments or shopping districts may be subject to additional sales taxes based on agreements with the city or county. These are often used to fund improvements within high-traffic shopping areas.

Here’s a quick summary for popular cities across Chicago:

Sales Tax Breakdown by Product or Service Type

Different types of products and services may be subject to varying sales tax rates within Illinois. Here’s a breakdown of what’s commonly taxed in Chicago:

• Tangible goods: Items such as appliances, vehicles, and electronics are taxed at the full rate.
• Clothing: Apparel and related items are fully taxable in Chicago.
• Hotel and rental accommodations: Hotel rooms and vacation rentals in Chicago are subject to additional local taxes.
• Automobile rentals: Vehicle rentals, including rideshare and short-term rentals, incur specific local tax charges.
• Software as a service (SaaS): Chicago’s Personal Property Lease Transaction Tax applies to some SaaS products, generally at a reduced rate of 5.25%, compared to the usual 9% for leased property.

Certain services, like digital goods, are generally exempt, but we always recommend confirming whether specific purchases may have unique local requirements.

Need Professional Tax Support?

Don’t feel overwhelmed if you’re in need of tax help. We know that this can be a complicated subject! Instead, rely on seasoned experts like ours. We’re happy to help with your Illinois sales tax compliance. See how our tax professionals at Lewis.cpa can assist you, contact us today to get started.