CHICAGO (July 29, 2026) — Chicago’s combined sales tax will reach 10.5% on Aug. 1, as the Regional Transportation Authority sales tax adds an additional 0.25 percentage point to sales taxes across Cook, DuPage, Lake, Will, Kane and McHenry counties.

According to the Illinois Policy Institute, this brings Chicago’s sales tax to the second-highest in the nation, following only Seattle.

The increase will bring in an estimated $200 million more in 2026 and $553 million more in 2027, the institute projects, with the revenue directed to the Chicago Transit Authority, Metra and Pace.

Enacted as part of the General Assembly’s transit bailout, which Gov. J.B. Pritzker signed in December 2025, the increase comes as Illinois businesses and residents are already struggling with some of the highest tax rates in the nation.

Illinois’ average combined state and local sales tax rate is 8.98%, ranking eighth-highest nationally and highest in the Midwest.

“Illinois families already pay some of the highest sales taxes in America, and now Chicago-area residents will be paying even more,” said Lilly Rossi, policy analyst at the nonpartisan Illinois Policy Institute. “A transit system that increasingly relies on regional tax revenue instead of fare-paying riders reflects deeper structural and management problems. The CTA has made progress, but without comprehensive reform and experienced leadership, more tax dollars won’t produce a better, safer or more reliable system.”

The higher sales tax will apply to qualifying groceries, medicines and medical appliances in the six-county region, increasing the cost of everyday purchases for millions of Illinoisans.

To read more about the RTA sales tax increase, visit illin.is/transit-tax.

For bookings or interviews, contact media@illinoispolicy.org or (312) 607-4977.