Chicago does NOT ban plastic carryout bags. Instead, since February 1, 2017, the city imposes a 7-cent checkout bag tax on every paper or plastic bag provided by retailers. Five cents goes to the city, 2 cents stays with the retailer. The earlier 2015 outright thin-plastic ban was repealed because it failed (retailers switched to thicker plastic).
Chicago first banned thin-film plastic checkout bags at large stores in August 2015, but the ordinance backfired — many retailers simply switched to slightly thicker plastic bags that technically qualified as "reusable" under the ordinance, increasing rather than decreasing plastic use. The City Council repealed the ban and replaced it with a 7-cent checkout bag tax on both paper and plastic bags, effective February 1, 2017 (Municipal Code §3-50). Retailers collect the tax at checkout: 5 cents is remitted to the City Finance Department; retailers keep 2 cents to offset administration. The tax applies whether the bag is paper or plastic — Chicago is unusual in NOT having an outright ban as of 2026. Cook County briefly considered a ban but did not adopt one.
Retailers who fail to collect or remit the 7-cent tax face penalties under Chicago Municipal Code Chapter 3-4 — interest, late fees, and fines up to $1,000 per day per violation. The Department of Finance audits compliance.
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See how Chicago's plastic bag rules rules stack up against other locations.
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