Chicago Adopts Highest Sales Tax Among Major Cities
Chicago next year will once again have the highest sales tax rate of any major U.S. city, according to a new analysis from a tax policy research organization.
The city rate will hit 10.25 percent. On Jan. 1, a sales tax increase the Cook County Board narrowly approved goes into effect. That will push Chicago above four Alabama cities, including Montgomery, where the rate is 10 percent, and Seattle, where the rate is 9.5 percent, the Tax Foundation analysis found. The foundation is a 78-year-old nonpartisan, nonprofit group based in Washington, D.C.
The county sales tax rate will rise from 0.75 percent to 1.75 percent. The balance of the sales tax comes from the state, city and mass transit portions.
Cook County Board President Toni Preckwinkle said that the tax was needed to restore financial health to the county’s underfunded pension system, cover rising payments for debt incurred before she took office and boost spending on roads and bridges.
If you have any questions please contact a Warady & Davis advisor at 847-267-9600.
Source: www.taxfoundation.org