Business Tax Classification: Arlington Heights vs Chicago
How do business tax classification rules compare between Arlington Heights, IL and Chicago, IL?
Arlington Heights and Chicago have similar restriction levels.
Arlington Heights, IL
Cook County
Cook County collects no county-level business income tax. Illinois imposes a 7% corporate income tax plus the 2.5% Personal Property Replacement Tax (PPRT) distributed to local governments. Cook County levies industry-specific taxes on parking, hotels, alcohol, and tobacco under Ch. 74.
View full Arlington Heights rules →Chicago, IL
Cook County
Chicago does not levy a city business income tax. The Business License Tax under MCC 4-4 funds licensing through the Department of Business Affairs and Consumer Protection. Illinois imposes a 7 percent corporate income tax plus the 2.5 percent Personal Property Replacement Tax.
View full Chicago rules →Key Facts Comparison
| Fact | Arlington Heights | Chicago |
|---|---|---|
| IL corporate tax | 7% under 35 ILCS 5 | 7 percent under 35 ILCS 5 |
| PPRT C-corp | 2.5% additional | - |
| Cook commercial assessment | 25% of value | 25 percent of value |
| County code | Ch. 74 Art. II-XX | - |
| City licensing | - | MCC 4-4 |
| Limited Business License | - | $250 biennial |
| PPRT add-on | - | 2.5 percent C-corp |
Highlighted rows indicate differences between cities.
Arlington Heights FAQ
Does Cook County tax business income?
No. Income taxation is preempted by Illinois. Cook collects industry-specific taxes (parking, hotel, amusement) and a higher property assessment ratio on commercial parcels.
What is the Personal Property Replacement Tax?
A 2.5% (corporations) or 1.5% (partnerships/S-corps) state tax on business income that replaced the abolished personal property tax. Revenue is distributed to local governments, including Cook.
Chicago FAQ
Does Chicago tax business income?
No. Illinois preempts municipal income taxation. Chicago collects business license fees, industry-specific transaction taxes (amusement, leases, parking), and higher commercial property taxes through Cook County.
Do I need a Chicago business license?
Almost all businesses operating in the city need at least a Limited Business License from BACP. Specific industries (food, alcohol, taxi, daycare) require additional licenses with separate fees and inspections.
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