Chicago’s New 1.5% Retail Liquor Tax Takes Effect Sunday, Adding Automatic Checkout Charge on Alcohol Purchased in Stores
CHICAGO, ILLINOIS — Chicago residents will soon notice a new charge on their receipts when purchasing alcohol from local liquor stores, as the city’s new 1.5% retail liquor tax officially takes effect Sunday.
The tax, announced by the City’s Department of Finance, had been delayed for two months to allow businesses time to update their checkout systems. Beginning this weekend, the new rate will automatically be added at the register for qualifying purchases.
What the New Tax Covers
The 1.5% retail tax applies specifically to alcohol purchased for off-premise consumption, meaning:
- Liquor bought from retail stores
- Alcohol purchased from grocery stores
- Packaged beverages taken home
It does not apply to drinks purchased at bars or restaurants for on-site consumption.
The new structure replaces the previous per-gallon tax that had been charged to retailers. Instead of taxing distributors by volume, the city will now collect a percentage directly tied to the retail sale price.
Separate From State Taxes
City officials emphasize that the Chicago tax is separate from Illinois state liquor taxes, which are already imposed on retailers and wholesalers statewide.
According to policy data, Illinois collects more than $300 million annually from alcohol-related taxes, based on recent fiscal reports. The Chicago levy will be added on top of those existing state charges.
How Chicago Compares
Several other home-rule cities in Illinois, including Bloomington, already impose retail alcohol taxes. Chicago’s move aligns it with other municipalities that have opted to generate local revenue through percentage-based retail liquor taxes.
What Shoppers Should Expect
For consumers, the impact will appear as a small but noticeable increase at checkout. Because the tax is percentage-based, the amount added will vary depending on the total cost of the alcohol purchased.
City officials say the charge will be automatically calculated and reflected on receipts beginning Sunday.
As Chicago implements the new retail liquor tax, residents will soon see firsthand how the additional 1.5% affects everyday purchases.
What do you think about the new city tax on retail alcohol sales? Share your thoughts with us at SaludaStandard-Sentinel.com.
