When it comes to Chicago, most people know of it as the ‘Windy City,’ or ‘The Second City’. However, when it comes to high sales tax, the city comes in first place.
Chicago ties with two other cites, Long Beach and Glendale, for having the highest sales tax in the country. This information comes from the Tax Foundation, Washington-based non-partisan tax research organization.
All three of these cities levy a combined state and local sales tax that equals out to be 10.25 percent on purchases. In the city of Chicago, consumers not only pay 6.25 percent to the state but also 1.25 to the city, 1.25 to the city, 1.75 percent to Cook County, and 1 percent to the transit authority. When you add those numbers up, for ever $100 residents spend, they spend an extra $10.25 on top.
Chicago Leads With The Highest Sales Tax
According to Adam Schuster, the director of budget and tax research at the conservative Illinois Policy Institute, the city of Chicago has an overspending problem. He says that there is a budget hole coming the city’s way. Also, the pension debt is way over $29 billion. Sadly, Schuster sees no sight of taxpayers slowing down on the spending.
There are a few other items that those in Chicago face when it comes to paying high taxes. For example, they rank the highest when it comes to paying taxes on parking. Also, cell phone and streaming services and ridesharing.
The Tax Foundation found that Portland, Ore., and Anchorage, Alaska, had the lowest numbers since neither has one.
There are only two cities that have a tax of 5.5 or lower on sales. The cities are Madison, Wis., Richmond, Va., and Honolulu, Hawaii. For Chicago, 2019 has been the second year that they have had top rankings when it comes to sales tax.
However, next year, those living in Long Beach will be able to vote whether or not to maintain their city’s total sales tax at 10.25 percent.