If you’ve been looking for a motivator to cut down on drinking or spending, you’ll get just that starting next month in Chicago.
As part of the 2026 Chicago municipal budget, Windy City residents will pay an additional tax on alcohol purchased at grocery and liquor stores citywide.
Here’s a breakdown of the tax and what it means for your wallet.
Liquor tax changes effective March 1, 2026
Beginning March 1, Chicagoans will notice a new 1.5% tax on their liquor store or grocery receipt when purchasing alcohol.
Previously, city residents paid a per-gallon tax on alcohol purchased in-store for off-premises consumption.
The new tax differs in that it is relative to the retail purchase price of the beverage.
In simple terms, the more expensive the alcohol, the higher the tax. Here’s a numerical breakdown:
- $20 alcohol purchase – customer pays additional $0.30
- $60 alcohol purchase – customer pays additional $0.90
- $100 alcohol purchase – customer pays additional $1.50
The new tax will be added on top of the standard Chicago sales tax rate of 10.25%.
The tax only applies to alcohol purchased in stores to be consumed elsewhere and does not affect drinks purchased at bars, restaurants, and venues.
All in all, while the tax won’t make a huge difference for the occasional purchase, the added fee could stack up over time.
Click here for more local tax information and resources.