Tax Information

Please note that there are certain Chicago Business Taxes that may be applicable to the type of business you will be starting. All City of Chicago taxes for your business will be assigned during the business license application process. You can make your payments and file returns online. If you have questions about your paying and filing requirements please call our Customer Service Unit at 312-747-4747.

 

City of Chicago Department of Finance

FILE & PAY CITY TAXES
The tax year is July 1 - June 30, and the due date for returns is August 15. You may file and pay your taxes online, or mail them to: "Chicago Department of Finance, 22149 Network Place, Chicago, IL 60673-1221."

With the exception of the Employers Expense Tax and some Non-Titled Use tax payers the payments are made monthly. Payments are due by the 15th of the month after the month in which the tax is incurred. For example the tax for March is due April 15. For EET the tax is paid quarterly and is due by the 15th of the month following the quarters end. In all cases (filing and paying) if the due date falls on a weekend or holiday, the due date becomes the next business day.


COMMON CITY TAXES

CategoryProcedureTax Base
Amusement Tax 1. Owners, managers, operators of places where amusements are conducted collect tax from patrons for witnessing or participating in amusements.

2. Resellers of tickets collect tax on the face value or markup if they paid tax on the face value when they purchased the tickets.
5% of admission receipts applied to live, theatrical, musical, and other live cultural performances held in an auditorium, theater, or other space whose maximum capacity (including balconies) of more than 750 persons.

9% for all other types of amusements.
Personal Property Lease Transaction Tax  The Personal Property Lease Transaction Tax applies to businesses or individuals that either are a lessor or lessee of personal property used in Chicago. 8% of receipts or charges.
Non-Titled Use Tax The Use Tax for Non-Titled Personal Property imposes a tax on the purchase of non-titled tangible personal property for use in Chicago from a retailer located outside Chicago. 1% of taxable purchases (first $2,500 of purchases each year are exempt).
Parking Tax The Parking Tax applies to businesses that operate parking lots, which must collect the tax from customers and remit to the City of Chicago. 20% for daily parking during the week as well as all weekly and monthly parking.
18% for daily parking on the weekends.
Employers Expense Tax (Head Tax) The Employers' Expense Tax applies to businesses that employ 50 or more full-time workers or employees that perform 50% or more of their work service per calendar quarter in the City of Chicago. Employees must earn more than $4,300 in a calendar quarter to be considered taxable.

This tax will be phased out in 2014.
$2 per employee per month
Hotel Tax The Hotel Accommodation Tax applies to businesses that rent or lease hotel accommodations. 4.5% of the gross rental or leasing charge
Restaurant Tax The Restaurant Tax is imposed on each place for eating located in the City of Chicago. The tax is imposed on the selling price of all food and beverages sold at retail by the place for eating. Restaurants that make $80,000 or less during the tax year and did not collect the tax from their customers should file a return for $0. 0.25% of retail price

Full List of City Taxes

 

Cook County Department of Revenue

The County has its own set of business taxes. Common taxes include:

    • Parking Lot & Garage Operation
    • Use
    • Tobacco
    • Amusement

 

Internal Revenue Service

Small Business and Self-Employed Tax Center
Federal Small Business and Self-Employed Tax Center
Small Business Tax Center

 

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