Accounting & Tax Services in Chicago, IL

Chicago Small Business Taxes: What Sets the City Apart

City taxes on top of state taxes

The City of Chicago Department of Finance administers several of its own taxes that land on small businesses. A few that come up often:

• Restaurant Tax: 0.5% of the selling price of food and beverages at places for eating in the city (since 1/1/2020).
• Amusement Tax: 9% on charges for most taxable amusements, and 10.25% on electronically delivered amusements such as streaming and online games.
• Checkout Bag Tax: $0.15 per bag as of January 1, 2026, with stores keeping $0.01 per bag.
• Personal Property Lease Transaction Tax: 15% of the lease or rental price, per the city’s 2026 revenue ordinance.

These are filed with the city, separately from state returns. Our bookkeeping sets up accounts that keep each of these taxes separate from revenue, so the city filings are easy to support.

Sales tax, licensing and property tax

The Illinois Department of Revenue lists Chicago’s general merchandise rate in Cook County at 10.50% as of August 1, 2026, up from 10.25%. It lists the small DuPage County portion of the city separately at 8.50%.

Chicago’s Department of Business Affairs and Consumer Protection (BACP) issues business licenses, and you apply online through Chicago Business Direct. Requirements vary by license type, so look up your activity in BACP’s guide to license types before you sign a lease.

The Cook County Assessor last reassessed the City of Chicago in 2024. The next citywide reassessment on the three-year cycle would be 2027. Owners of storefronts and small mixed-use buildings can use this time to review the 2024 values.

How we help Chicago owners

For a Chicago LLC or corporation, small business accounting and tax services cover the monthly books and the annual return in one engagement. When there are employees, payroll services handle the pay runs and filings. The state side includes the 1.5% or 2.5% Illinois replacement tax, depending on entity type.

Talk with us

Our office is at 1323 Butterfield Rd in Downers Grove, about 22 miles by road from the Loop. Call (331) 264-4194 or send a message on the contact page.