Amendment of Municipal Code Titles 1, 3, 4, 7, 9, 10, 11, 14A, 14X and 17 (2026 Revenue Ordinance)
- Record number: O2025-0021921
- Type: Ordinance; category: Municipal Code Amendments
- Status: In Committee
- Sponsor: Johnson, Brandon
- Committee: Committee on Committees and Rules
- Submitted Date: Dec 19, 2025
- Introduction Date: Dec 19, 2025
- Official record: Office of the City Clerk
Impact report
Written by AI from the official document. AI can make mistakes; the official document always wins.
The 2026 Revenue Ordinance would raise many Chicago taxes, fees, and fines, and create new taxes on large employers, retail packaging, and big social media companies.
Who it affects
- Large employers: Employers with 500 or more full-time employees or commission workers in Chicago would pay a new monthly tax per worker that they may not pass on to workers.
- Shoppers: Shoppers would pay 15 cents per checkout bag instead of 10 cents, plus a new 15-cent tax on single-use packaging such as delivery boxes and mailers.
- Rideshare riders and drivers: Extra per-ride rideshare taxes would apply in two new, larger congestion zones instead of only the Downtown Zone.
- Drivers whose cars are towed: Towing fees, daily storage fees, and the storage fee cap would all go up, and some parking fines would rise by $10.
- Restaurants and food businesses: Yearly inspection fees would double, and health violation fines would rise by $25.
- Contractors and building trades: License fees, permit minimum fees, and fines for contractors, crane operators, electricians, plumbers, and others would change, with many fines doubling.
What changes
- Online and store purchases using single-use boxes or mailers would carry a 15-cent tax per package.
- Rideshare rides starting or ending in the new congestion zones from 6 a.m. to 10 p.m. would carry extra city taxes.
- Getting a towed car back would cost more.
- A pilot program would allow ads on city lampposts and parking meters downtown until December 31, 2027.
- Bally's could run slot machines at Midway for passengers 21 and older past security, with city proceeds going to police and fire pension funds; the automatic yearly property tax levy increase would be suspended for 2026.
Money
- Employer Expense Tax: $33 per month for each full-time employee, paid by employers with 500 or more workers; money goes to a Community Safety Fund.
- Checkout bag tax rises from $0.10 to $0.15 per bag, and a new $0.15 per-package packaging tax is paid by the buyer and collected by the seller or delivery app.
- Social Media Amusement Tax: $0.50 per Chicago user per month above 100,000 users, paid by social media companies; money goes to a Protecting Care Fund.
- Towing fee rises from $150 to $250 ($350 for heavy vehicles), storage from $25 to $50 per day, with storage capped at $1,500.
- Tax on leased or rented personal property rises from 11% to 15%, and the tax on sports betting receipts rises from 2% to 10.25%, including mobile bets.
Where: O'Hare International Airport; Midway International Airport; Navy Pier; McCormick Place; Central Business District; Congestion Zone One (31st St and State St north to Foster Ave, Western Ave east to Lake Michigan); Congestion Zone Two (Cottage Grove Ave, Hyde Park Blvd, 60th St, Lake Shore Drive); Parking pilot area (Irving Park Rd south to 26th St, Ashland Ave east to the lake)
When: Most parts take effect January 1, 2026; new rideshare zones January 6, 2026; vehicle license fees February 1, 2026; taxi and public passenger vehicle tax changes July 1, 2026; parking fine changes 10 days after passage; Midway gaming upon passage and pamphlet publication.