Chicago residents purchasing alcohol for off-premise consumption began paying a new 1.5% tax on those purchases starting Sunday, March 1, 2026. The tax applies to beer, wine and liquor bought at retail locations like liquor stores and supermarkets, according to the city’s Department of Finance.
The new tax replaces a previous system that levied a per-gallon tax on retailers. City officials stated the change was delayed by two months to allow businesses time to adjust their systems. The tax is intended for consumption off the premises where it is sold, meaning bars and restaurants where alcohol is consumed on-site are not affected and will continue to pay the existing per-gallon tax.
The implementation of the tax is expected to generate additional revenue for the city of Chicago. In fiscal year 2025, the state of Illinois collected over $300 million in taxes on alcohol through taxes on retailers and wholesale distributors, according to the Illinois Policy Institute. This new city tax will be added automatically to customer receipts at the point of sale.
Several other municipalities in Illinois already impose taxes on retail alcohol sales, including Bloomington. The change comes as part of the city’s 2026 budget, which includes new and modified revenue sources.
