Your Chicago Uber or Lyft could start to cost more beginning Tuesday as a “congestion fee” written into the city’s 2026 budget goes into effect.
The fee, known as a “Ground Transportation Tax TNP Congestion Zone Surcharge,” goes into effect at 6 a.m., according to the city, and is dependent on where you’re dropped off or picked up. For every single ride, trips between 6 a.m. and 10 p.m. in newly defined “Congestion Zones” will cost an additional $1.50 (up from $1.13) per vehicle per ride.
For shared rides — where passengers are pooled with others heading in the same direction — the ride will cost an additional 60 cents, the tax says.
According to city, there are two new “Congestion Zones” where the prices would apply in. The zones exclude McCormick Place and Navy Pier, the city said.
Zone 1 covers a large portion of downtown, including The Loop, River North, West Loop. It stretches from Pilsen to 31st St. Beach and then along the lake to near Andersonville, according to a map provided by the city.
Another congestion zone, dubbed “Zone 2,” runs from East 60th Street, to South Cottage Grove and East Hyde Park Boulevard, the map showed.
What else will cost more in Chicago?
The new budget also includes checkout bag tax, which means bags at stores in the city will rise from 10 cents to 15 cents per checkout bag sold or used in the city. That went into effect Jan. 1.
Other taxes that went into effect Jan. 1 impact rental prices, car leases and more. Here’s a breakdown:
Personal Property Lease Transaction Tax: Beginning Jan. 1, a 15% tax will be applied to the lease or rental price for all leases in a personal property lease transaction. Motor Vehicle Lessor Tax: Those leasing motor vehicles within the city on a daily or weekly basis will see a $0.50 per vehicle per rental period tax. Boat Mooring Tax: There will be a 23.25% tax on mooring or docking fees, for not-for-profit corporations, however, it is 7%.Social media businesses in Chicago that collect consumer data on more than 100,000 people will also be taxed more, the budget says. And, primary sports licensees will be taxed 10.25% of the adjusted gross sports wagering receipts from sports wagers that are placed within the city, but there are some guidelines.
And starting March 1, a liquor tax will be applied on alcoholic beverages purchased at retailers for consumption off of the premises. It will be 1.5% of the purchase price.
The budget began in Chicago after Mayor Brandon Johnson refused to sign it, but he also did not veto the alternative plan passed by City Council in late December. If no budget was passed by the end of the year, the city faced a potential shutdown.
“I want to announce I will not veto the budget approved by the Chicago City Council. I will not add my signature affirming the budget as presented,” the mayor said in a statement. “In this moment I will not add the risk and speculation of a government shutdown to the profound worries Chicagoans face.”
Without Johnson’s signature, the budget took effect by default five business days from when it was passed, or by Jan. 1.
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