Business Tax Classification: Chicago vs Evanston
How do business tax classification rules compare between Chicago, IL and Evanston, IL?
Chicago and Evanston have similar restriction levels.
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 →Evanston, 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 Evanston rules →Key Facts Comparison
| Fact | Chicago | Evanston |
|---|---|---|
| City licensing | MCC 4-4 | - |
| Limited Business License | $250 biennial | - |
| IL corporate tax | 7 percent under 35 ILCS 5 | 7% under 35 ILCS 5 |
| PPRT add-on | 2.5 percent C-corp | - |
| Cook commercial assessment | 25 percent of value | 25% of value |
| PPRT C-corp | - | 2.5% additional |
| County code | - | Ch. 74 Art. II-XX |
Highlighted rows indicate differences between cities.
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.
Evanston 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.
Compare other topics
See how Chicago and Evanston compare on other ordinance categories.
Want to add a third city?
Use our full comparison tool to compare up to three cities.
Open Comparison Tool