Chicago (IL) Sales Tax
The Chicago sales tax rate is 10.25%
| Taxing jurisdiction | Rate |
|---|---|
| Illinois state sales tax | 6.25% |
| Cook County sales tax | 1.75% |
| City tax | 1.25% |
| Special tax | 1.00% |
| Combined Sales Tax | 10.25% |
Chicago sales Tax Calculator Illinois
To make it easier to calculate the Chicago (IL) Sales tax, we have created a calculator. All that you need to input is the zip code and the number of goods bought. The calculator will tell you how much you should approximately pay in sales tax. The tools are free to use and very simple.
How does the Chicago sales tax compare to the rest of Illinois?
Each vendor in the USA needs to charge sales tax to the items and services that they sell. The Department of Revenue collects the sales tax proceeds from the vendors. The Chicago, IL sales tax rate is 10.25%. This includes 6.25% Illinois state sales tax, 1.75% Cook County sales tax and 1.00% special tax.
A merchant adds the sales tax to all the qualifying sales completed in Chicago, IL. The Chicago sales tax should be clearly stated on the invoice. There are some specific goods and services are tax-exempt in Chicago (Illinois). Alcohol, tobacco and gas are subject to excise tax.
The 10.25% sales tax rate of the Chicago, IL applies to the following list of zip codes: 60608, 60609, 60612, 60613, 60615, 60616, 60617, 60618, 60619, 60620, 60621, 60622, 60623, 60624, 60625, 60626, 60628, 60629, 60630, 60631, 60632, 60633, 60634, 60636, 60637, 60638, 60639, 60640, 60641, 60643, 60644, 60645, 60646, 60647, 60649, 60651, 60652, 60653, 60655, 60656, 60657, 60659, 60660, 60666, 60688.
The vendor needs to check their district zip code to make sure that they are charging the right sales tax for the business transactions.
There are 1787479 people in and around Chicago. It is important to be aware that zip-code boundaries do not always coincide with general boundaries. Therefore, when choosing sales tax rates, you should not focus only on zip-codes. In the event of a dispute, it is recommended that you contact the Internal Revenue Service to determine sales tax rates for you.
Alternative sales tax rate for Chicago
| City | Combined Tax | State Rate | County Tax | City Tax | Special Tax |
|---|---|---|---|---|---|
|
Elmwood Park |
10.00% | 6.25% | 1.75% | 1.00% | 1.00% |
|
Harwood Heights |
10.25% | 6.25% | 1.75% | 1.25% | 1.00% |
| Aurora | 8.25% | 6.25% | 0% | 1.25% | 0.75% |
Popular questions about sales tax in Chicago
Sometimes, people have a hard time figuring out the math behind sales taxes. This is especially true when people have the total transaction cost and the total sales tax. To figure out the sales tax percentage, we must do a bit of math, which is very simple and can be done via a phone calculator. Let’s assume that your total transaction with taxes is $106.25 and you know that the shelf price of the products purchased is $100.
The first thing that you do is subtract the cost of the goods from the total. In that case $106.25-$100=$6.25. Now you know that the sales taxes are $6.25. Then you divide the total sales tax by the shelf price of the cost of the goods bought, hence $100. So, ding the math, we have $6.25/$100 = 0.0625. We take the ratio number, and we multiply by 100%. Hence, we get : 0.00625*100%= 6.25%, which is the rate.
Sales taxes add up and increase your costs. Everybody would like to save on costs. There are legal ways that you can use to avoid paying sales taxes. The first detail to know is a court ruling of 1992. According to the supreme court, you are not liable for sales taxes when you buy out of state. This means that if you do some research and buy from sellers that are established out of state, you will be able to avoid sales taxes.
Another great way to avoid sales taxes is to shop at eBay or other eCommerce stores where items are sold by individual sellers. We need to remember that companies that sell on these platforms are liable to charge sales taxes. The same strategy can be used to find big companies or established merchants that have their eCommerce business separate from their brick-and-mortar shops. Such is the case of Barnes&Nobles and Borders. Also making small research on how the sales tax is handled by the seller is a great way to save money, as the merchant may have special agreements with the government.
Another great way to avoid sales taxes is to purchase from states that do not incur sales taxes. If you cannot eliminate the sales tax, then why not reduce it. Since sales taxes depend on location, then choosing the right place to buy the car, will affect your sales taxes, as each county and zip code have their own applicable sales tax rate. The type of car also affects your applicable sales tax rate. A good way to reduce your sales taxes is to choose the right permanent address.
There are some special goods and services that do not qualify for the sales tax rate but instead are charged another rate. The most common category of these items falls under the excise tax. This is a special tax rate that is charged to gas, fuel, tobacco, and other goods that are heavily regulated by the government. Some services qualify for excise tax, such as using the highway. Air travel is in this category too.
Sales taxes are collected by the Department of Revenue. The taxes go to the General Fund, and it funds government expenses. Some parts of the sales tax fund state operations, such as K-12 education. The money can be used to fund other public services. The money collected from taxes is also used to pay the wages of jobs that are related to government agencies, such as police departments, libraries, museums, etc.
The first detail to know about sales taxes is that some states imposer the sale tax on the vendor, some to the buyer, and some states place sales taxes on both entities. It is important to know who pays the tax, as this affects whether you can claim the taxes as a refund or not.