Amendment of Municipal Code Titles 1, 3, 4, 7, 9, 10, 11, 14A and 14X (2026 Municipal Code Revenue Ordinance)
- Record number: O2025-0021094
- Type: Ordinance; category: Municipal Code Amendments
- Status: Council Consideration (Deferred and Published)
- Sponsor: Dept./Agency
- Committee: Committee on Finance
- Submitted Date: Nov 14, 2025
- Introduction Date: Nov 17, 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.
Chicago's 2026 revenue ordinance would create new taxes on large employers and social media companies, raise the sports betting tax and many city fees and fines, and pause the automatic property tax levy increase for 2026.
Who it affects
- Employers with 100 or more full-time workers in Chicago: They would pay a new Employer Expense Tax of $21 per month for each full-time employee or commission worker, and this cost cannot be passed on to workers.
- Social media companies: Companies that collect data on more than 100,000 Chicago users would pay a new monthly tax for each user over that number.
- Drivers whose vehicles are towed: Towing, daily storage fees, and the storage fee cap would all go up.
- Restaurants and food businesses: Yearly building inspection fees would double, and health code fines would rise by $25 per violation.
- Construction contractors and trade workers: Licensing fees, permit minimums, and fines would change, many fees would rise each year with inflation, and general contractor project limits and some insurance requirements would increase.
- Sports betting operators: The city tax on sports betting would rise from 2% to 10.25% and would also cover internet and mobile bets placed in Chicago.
What changes
- Getting a towed car back would cost more.
- Stores would send the full 10 cents per checkout bag to the city instead of keeping 1 cent.
- Many city license, permit, and inspection fees would rise automatically each year with inflation.
- The daily car rental tax would drop from $2.75 to $0.50 per rental period.
- The automatic yearly property tax levy increase would be paused for 2026.
Money
- Employers with 100+ full-time workers pay $21 per month per worker starting January 1, 2026, with the money going to a Community Safety Fund.
- Social media businesses pay $0.50 per Chicago user per month above 100,000 users, with the money going to a Protecting Care Fund for mental and behavioral health.
- The sports wagering tax paid by licensed operators rises from 2% to 10.25% of adjusted gross receipts.
- The tax renters pay on leased personal property rises from 11% to 15%.
- Vehicle owners pay a $250 towing fee ($350 for vehicles 8,000+ pounds), up from $150 ($250), plus $50 per day for storage ($100 for heavy vehicles), with a storage cap of $1,500 instead of $1,000.
Where: Navy Pier; McCormick Place; Wrigley Field; Guaranteed Rate Field; Soldier Field; United Center; Wintrust Arena; West Irving Park Road
When: Most parts take effect January 1, 2026. Public passenger vehicle license fees take effect February 1, 2026. The ground transportation tax changes take effect July 1, 2026. Trade licensing and building permit changes take effect upon passage, with new fees starting at least 10 days later or January 1, 2026, whichever is later.
Timeline
- Nov 17, 2025: Recommended Do Not Pass, Committee on Finance. The matter was recommended Do Not Pass by controlling legislative body.
- Nov 18, 2025: Deferred and Published, City Council. On request of Alderperson Dowell and Alderperson Ervin, the matter was Deferred and Published.
Documents
- O2025-0021094 Revenue Ordinance ORIGINAL.pdf (Legislation)
- O2025-0021094 Revenue Ordinance UPDATED 11.17.25.pdf (Legislation)
- O2025-0021094 Transmittal.pdf (Miscellaneous)
Related legislation
More from Dept./Agency
- Amendment of Regulations Governing Administration of Classification Plan and Employee Benefits for Classified Positions set forth in… (R2026-0029648, introduced Oct 21, 2026, Referred)
- Fiscal Year 2027 Tax Levy (O2026-0029645, introduced Oct 21, 2026, Referred)
- Amendment of Municipal Code Titles 2, 4, 6, 7, 8, 9, 10, 11, 14A, 15, 17 regarding management, structure, powers and functions of various… (O2026-0029644, introduced Oct 21, 2026, Referred)
More on Municipal Code Amendments
- Amendment of Municipal Code Section 9-24-065 regarding ability to pay pilot program (O2026-0029654, introduced Dec 8, 2026, Council Introduction)
- Amendment of Municipal Code Titles 3, 4 and 8 regarding technical and scriveners' corrections (2027 Municipal Code Corrections Ordinance) (O2026-0029649, introduced Oct 21, 2026, Referred)
- Amendment of Municipal Code Titles 2, 3, 4, 9, 10, 16 and 18 (2027 Revenue Ordinance) (O2026-0029643, introduced Oct 21, 2026, Referred)
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