1. What is Chicago Sales Tax?

Chicago has a combined sales tax rate of 10.25%, which is one of the highest in the nation. This includes state, county, city, and special district taxes.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Purchase Price — The pre-tax amount of the purchase in dollars
• 10.25% — The combined sales tax rate in Chicago

3. Importance of Sales Tax Calculation

Details: Understanding sales tax helps with budgeting and financial planning, especially for large purchases in Chicago where the rate is significantly higher than national average.

4. Using the Calculator

Tips: Enter the purchase price in dollars (without $ sign). The calculator will compute both the sales tax amount and the total amount including tax.

5. Frequently Asked Questions (FAQ)

Q1: What items are taxed at 10.25% in Chicago?
A: Most general merchandise is taxed at the full rate, though some items like groceries and medicines have lower rates.

Q2: Is this the same throughout Illinois?
A: No, Chicago has the highest rate. Other municipalities have different combined rates.

Q3: When did Chicago's sales tax reach 10.25%?
A: The rate reached this level in 2016 when the city added an additional 0.5% for public safety pension funding.

Q4: Are online purchases taxed at this rate?
A: Yes, since 2020, Illinois requires online retailers to collect Chicago's sales tax.

Q5: How does this compare to other major cities?
A: Chicago's rate is higher than New York (8.875%), Los Angeles (9.5%), and Houston (8.25%).