Chicago’s Personal Property Lease Transaction Tax Increase
Also effective January 1, 2026, Chicago quietly enacted a year-end rate increase to its Personal Property Lease Transaction Tax, raising the rate from 11% to 15%.
What it can affect:
- Traditional equipment leases
- SaaS
- Cloud computing
- Data processing services
The change is especially relevant for technology-driven businesses operating in or selling into Chicago. While the update did not come with much fanfare, it has a real impact on ongoing tax collection and filing obligations. Businesses subject to this tax should confirm they are applying the updated rate, and those who file the tax in Chicago should be aware of the change to avoid under-collection or compliance gaps moving forward.
Do you already owe tax in Illinois?
Two questions. No email required to see your answer.
Have your sales into Illinois grown over the last four quarters?
What this means for your business
If your sales into Illinois have grown with prices, you may have crossed the economic nexus threshold without changing anything about how you sell. We’ll tell you where you stand in 30 minutes — and if there’s nothing to fix, we’ll say so.