A new liquor tax for alcohol sold at retail stores in Chicago is now in effect, which means your beer, wine and other booze may start to cost more.
According to the city of Chicago, a new 1.5% tax on liquor officially went into effect Sunday. The tax, which replaces the previous per-gallon tax on retailers, was delayed by two months to give shops more time to implement the new system.
The new tax applies specifically to customers who are purchasing alcohol meant to be consumed off the premises where it is sold. At places like restaurants, bars and venues, where alcohol is meant to be consumed on-site, the per-gallon tax will apply, officials said.
“Each retailer of alcoholic beverages for consumption off the premises is required to collect the 1.5% tax from the purchaser at the time the sale is made,” the city said.
Numerous other home rule communities in the state of Illinois already have taxes assessed on retail alcohol sales, including Bloomington.
The state of Illinois also assesses taxes on liquor retailers and wholesale distributors for liquor, with the state collecting more than $300 million in taxes on liquor in fiscal year 2025 according to the Illinois Policy Institute.
That money is separate from the new tax being assessed in Chicago, which will automatically be added to customers’ receipts at checkout.
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