Chicago Lease Tax Increase

The tax rate for the City of Chicago Personal Property Lease Transaction Tax increased from 9% to 11%, effective January 1, 2025.  The rate increase applies to new leases executed on and after January 1, 2025. The increase also applies to remaining payments due on and after January 1, 2025, for leases that were executed before January 1, 2025.  

As a reminder, the Chicago Personal Property Lease Transaction Tax applies to the capitalized cost reduction and any monthly lease payment for all leased vehicles that are registered to a Chicago address and is in addition to the State Retailers Occupation Tax, the Chicago Home Rule Tax, and the Cook County Home Rule Use Tax. Unlike the State Retailers Occupation Tax, the Chicago Home Rule Tax, and the Cook County Home Rule Use Tax, all of which are due at signing, the Chicago Personal Property Lease Transaction Tax is due at the same time as any lease payments are due. 

A copy of the amendment to the Chicago Personal Property Lease Transaction Tax ordinance can be found here.