Chicago residents purchasing alcohol from local liquor stores will see a new tax added to their bills starting Sunday, as the city implements a revised taxation system on retail liquor sales. The Chicago Department of Finance confirmed that a 1.5 percent liquor tax will officially take effect after a two-month delay that was granted to allow retailers additional time to update billing systems and prepare for the change.

The new Chicago liquor tax replaces the previous structure that required retailers to pay a per-gallon tax on alcohol sold. Under the updated policy, the tax will now be applied directly to customers at the point of purchase, appearing automatically on receipts during checkout. City officials said the change is intended to modernize the way alcohol sales are taxed and to align the system more closely with other retail tax models already used in Illinois.

According to the Department of Finance, the tax applies only to alcohol purchased for off-premise consumption, meaning products bought at liquor stores, grocery stores, and other retail outlets where alcohol is not consumed on site. Sales at bars, restaurants, and other establishments where alcohol is served for immediate consumption are not affected by this specific tax change.

Officials noted that several other home rule communities across Illinois already impose taxes on retail alcohol sales, making Chicago’s new approach consistent with practices in other municipalities, including Bloomington. Statewide taxes on liquor also remain in place, with Illinois continuing to collect revenue from both retailers and wholesale distributors under existing tax laws.

Financial data from the Illinois Policy Institute shows that the state collected more than $300 million in liquor-related tax revenue during the 2025 fiscal year. That total does not include the new Chicago retail alcohol tax, which will be collected separately by the city and added directly to consumer purchases beginning this week. City leaders say the updated tax structure is expected to provide a more stable and transparent revenue stream while simplifying compliance for retailers.