Business Tax Classification: Chicago vs Tinley Park
How do business tax classification rules compare between Chicago, IL and Tinley Park, IL?
Chicago and Tinley Park 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 →Tinley Park, 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 Tinley Park rules →Key Facts Comparison
| Fact | Chicago | Tinley Park |
|---|---|---|
| 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.
Tinley Park 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.
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