Chicago has second highest taxes on meals in restaurants
Ever notice that going out to eat seems more expensive in Chicago than other cities? One of the reasons is that on top of the very high sales tax in Chicago, there are additional taxes on meals in restaurants: 0.25 percent Chicago restaurant tax and 1.0 percent Metropolitan Pier and Exposition Authority (MPEA) food and...
Ever notice that going out to eat seems more expensive in Chicago than other cities? One of the reasons is that on top of the very high sales tax in Chicago, there are additional taxes on meals in restaurants: 0.25 percent Chicago restaurant tax and 1.0 percent Metropolitan Pier and Exposition Authority (MPEA) food and beverage tax. The MPEA tax is only applicable for certain parts of Chicago, specifically both airports and the downtown Chicago area.
Chicago isn’t the only city that has these types of taxes. “Prepared meal” taxes can vary significantly, and a recent analysis by the Tax Foundation found that 15 of the largest 50 cities in the U.S. charge an additional tax ranging from 0.05 percent in Milwaukee to 5.5 percent in Virginia Beach. When meal taxes are combined with sales taxes, the cities with the highest taxes on meals are Minneapolis (10.775%), Chicago (10.75%), Virginia Beach (10.5%), Seattle (10.0%) and Washington, DC (10.0%). By contrast, Portland, Oregon doesn’t have a sales tax or a meal tax.
Table 1: Meals Taxes in the 50 U.S. Cities with Largest Population
| Population Rank | City | State | Sales Tax | Additional Meals Tax | Combined Tax on Meals | Combined Tax Rank |
|---|---|---|---|---|---|---|
| 1 | New York City | NY | 8.875% | – | 8.875% | 18 |
| 2 | Los Angeles | LA | 8.75% | – | 8.75% | 19 |
| 3 | Chicago | IL | 9.50% | 1.25% | 10.75% | 2 |
| 4 | Houston | TX | 8.25% | – | 8.25% | 25 |
| 5 | Philadelphia | PA | 8% | – | 8% | 33 |
| 6 | Phoenix | AZ | 9.30% | – | 9.30% | 7 |
| 7 | San Antonio | TX | 8.25% | – | 8.13% | 30 |
| 8 | San Diego | CA | 7.75% | – | 7.75% | 37 |
| 9 | Dallas | TX | 8.25% | – | 8.25% | 25 |
| 10 | San Jose | CA | 8.25% | – | 8.50% | 22 |
| 11 | Jacksonville | FL | 7% | 2% | 9% | 14 |
| 12 | Indianapolis | IN | 7% | 2% | 9% | 14 |
| 13 | San Francisco | CA | 8.50% | – | 8.50% | 22 |
| 14 | Austin | TX | 8.25% | – | 8.25% | 25 |
| 15 | Columbus | OH | 6.75% | – | 6.75% | 45 |
| 16 | Fort Worth | TX | 8.25% | – | 8.25% | 25 |
| 17 | Louisville | KY | 6% | – | 6% | 46 |
| 18 | Charlotte | NC | 8% | 1% | 9% | 14 |
| 19 | Detroit | MI | 6% | – | 6% | 46 |
| 20 | El Paso | TX | 8.25% | – | 8.25% | 25 |
| 21 | Memphis | TN | 9.25% | – | 9.25% | 9 |
| 22 | Baltimore | MD | 6% | – | 6% | 46 |
| 23 | Boston | MA | 6.25% | 0.75% | 7% | 43 |
| 24 | Seattle | WA | 9.50% | 0.50% | 10% | 4 |
| 25 | Washington | DC | 6% | 4% | 10% | 4 |
| 26 | Nashville | TN | 9.25% | – | 9.25% | 9 |
| 27 | Denver | CO | 4.10% | 4% | 8.10% | 31 |
| 28 | Milwaukee | WI | 5.60% | 0.05% | 5.65% | 49 |
| 29 | Portland | OR | – | – | – | 50 |
| 30 | Las Vegas | NV | 8.10% | – | 8.10% | 31 |
| 31 | Oklahoma City | OK | 8.375% | – | 8.375% | 24 |
| 32 | Albuquerque | NM | 6.9995% | – | 6.9995% | 44 |
| 33 | Tucson | AZ | 9.10% | – | 9.10% | 11 |
| 34 | Fresno | CA | 7.975% | – | 7.975% | 36 |
| 35 | Sacramento | CA | 7.75% | – | 7.75% | 37 |
| 36 | Long Beach | CA | 8.75% | – | 8.75% | 19 |
| 37 | Kansas City | MO | 7.85% | 1.23% | 9.08% | 12 |
| 38 | Mesa | AZ | 9.05% | – | 9.05% | 13 |
| 39 | Virginia Beach | VA | 5% | 5.50% | 10.50% | 3 |
| 40 | Atlanta | GA | 8% | – | 8% | 33 |
| 41 | Colorado Springs | CO | 7.40% | – | 7.40% | 42 |
| 42 | Omaha | NE | 7% | 2.50% | 9.50% | 6 |
| 43 | Raleigh | NC | 6.75% | 1% | 7.75% | 37 |
| 44 | Miami | FL | 7% | 2% | 9% | 14 |
| 45 | Cleveland | OH | 7.75% | – | 7.75% | 37 |
| 46 | Tulsa | OK | 7.50% | – | 7.50% | 41 |
| 47 | Oakland | CA | 8.75% | – | 8.75% | 19 |
| 48 | Minneapolis | MN | 7.775% | 3% | 10.775% | 1 |
| 49 | Wichita | KS | 9.30% | – | 9.30% | 7 |
| 50 | Arlington | TX | 8% | – | 8% | 33 |