Chicago Sales Tax Increases to 10.5% Amid Transit System Bailout
Starting August 1, 2026, Chicago's sales tax will rise to 10.5%, one of the highest rates among major U.S. cities. This increase is part of a $1.5 billion legislative package aimed at bailing out northern Illinois' transit systems. The package includes higher taxes and fees to address budget deficits and prevent service cuts. The sales tax hike affects not only Chicago but also surrounding areas, with Cook County's transit tax portion rising to 1.25% and collar counties seeing an increase from 0.75% to 1.0%. The decision has sparked debate over the balance between necessary revenue generation and the economic burden on taxpayers. 
