Chicago Increases Various Tax Rates Effective January 1, 2026

• Personal Property Lease Transaction Tax (“PPLT”): 
  The PPLT increases from 11% to 15%. This tax can broadly apply to many software and digital services, including “nonpossessory computer leases” such as Software-as-a-Servce (“SaaS”). Because SaaS is typically not subject to Illinois sales tax, SaaS sold to Chicago customers is subject to PPLT. This latest increase follows a prior adjustment from 9% to 11% in 2025 and is expected to generate an over $400 million of funds for Chicago.
  
• Social Media Amusement Tax:
  A new tax applies to social media businesses that collect data on more than 100,000 Chicago consumers in a calendar year.  
  
• Sports Wagering Tax:
  Internet and mobile sports wagering receipts will be taxed at 10.25% of gross wagering receipts.

This publication contains general information and is not intended to be comprehensive or to provide legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any decision or action that may affect you or your business. Consult your advisors. The fact that you have received this publication does not create an accountant-client or advisory relationship between you and Rödl Langford de Kock LLP or any of its subsidiaries or affiliates. If you wish to hire Rödl Langford de Kock LLP or any of its subsidiaries or affiliates you will need to speak with one of our accountants and enter into a written agreement establishing the scope of engagement. We have made reasonable efforts to ensure the accuracy of the information contained in this publication, however this cannot be guaranteed. Neither Rödl Langford de Kock LLP nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including, but not limited to, incidental or consequential damages arising from errors or omissions. Any such reliance is solely at user’s risk. Any tax and/or accounting information contained herein is based on our understanding of the facts and assumptions we have been asked to make for the purpose of this publication alone, and on the tax laws and/or accounting principles in effect as of the date of this advice. No assurance is given that the conclusions would be the same if the facts or assumptions change, or are not as we understand them, or that the tax laws and/or accounting principles will not change subsequent to the issuance of these conclusions. In addition, we do not undertake any continuing obligation to advise on future changes in the tax laws and/or accounting principles, or of the impact on the conclusions herein. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Rödl Langford de Kock LP.

Copyright © January 2026 Rödl Langford de Kock LP
All rights reserved. ​​