The new year means new tax rates for Chicagoans. Beginning January 1, 2026, rates for a host of consumer goods from grocery bags to rideshares will increase.
Here’s a breakdown of what will cost more and how it’ll impact your wallet.
Checkout Bag Tax
Chicago’s checkout bag tax will increase to fifteen cents ($0.15) per bag, up from ten cents ($0.10) on January 1st.
The increased fee could leave some shoppers feeling the pinch at the grocery store. Luckily, residents can bypass the tax and reduce waste by packing reusable bags!
Social Media Amusement Tax
Chicago is hitting social media companies with higher taxes in 2026, targeting corporations that collect and monetize consumer data.
Beginning in 2026, companies will pay a $0.50 tax on data collected from Chicago users beyond the first 100,000 users in a month.
As for how this tax could impact consumers, the immediate effects will likely be minimal.
Over time, however, the tax could result in increased ads, additional fees, and content limitations on popular social media sites like Facebook, TikTok, and Twitter/X.
Liquor Tax / Alcoholic Beverages Tax – Off Premises Consumption
A new tax on alcoholic beverages purchased for off-premise consumption will go into effect in 2026.
The 1.5% tax applies to alcoholic beverages purchased at a liquor, grocery, or convenience store for consumption at home or another location.
It does not impact drinks purchased at bars or restaurants.
The tax is based on the purchase price of the beverage, according to the Chicago Department of Finance, and will be included with other alcohol taxes at checkout.
The new tax will reflect an increase of a few cents per purchase. For example, a $20 pack of beer will include an added $0.30.
While the tax is minimal, the extra cost will add up, and comes at a time when grocery prices are already sky high. So if you were planning a dry January, you picked a good time to start!
“Congestion Zone” rideshare fees
Beginning January 6, 2026, rideshares purchased within designated “congestion zones” will include a new tax. The tax is designed to reduce traffic in some of the busiest parts of Chicago.
For single rides, users will pay an additional $1.50 fee if the ride pickup or drop-off is within a congestion zone between 6 a.m. and 10 p.m. daily.
Shared rides will include a $0.60 fee to or from congestion zones between 6 a.m. and 10 p.m. on weekdays only.
Motor Vehicle Lessor Tax
Chicagoans who lease their vehicle will pay higher fees in 2026. The Motor Vehicle Lessor Tax will increase to $0.50 per vehicle per lease-specified rental period.
More information
For a full list of all the tax increases going into effect in 2026, visit the Chicago Department of Finance’s official page.