A City of Chicago tax on leases and rentals of personal property used in the city, including software and cloud services. The rate rose to 15 percent effective January 1, 2026.
Businesses in Chicago pay it on SaaS subscriptions and cloud computing they may not think of as leases. Vendors often collect it, but the business owes it directly when they do not.
It applies where the leased property or service is used in Chicago. A Skokie business using software only in Skokie is outside it.
Source: Chicago Municipal Code 3-32-030 as amended by the 2026 Revenue Ordinance
Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.
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