Chicago, IL Local Taxes & Fees: Parking Tax (2026)
Key Facts
- Tax rate
- 23.25% of parking charge
- Applies to
- Hourly, weekly, monthly parking
- Collected by
- Lot/garage operator, at payment
- Governing code
- MCC § 4-236-020
- Small-lot exemption
- 3 or fewer paid spaces
Summary
Chicago taxes the privilege of parking a vehicle in a City parking lot or garage at 23.25% of the fee charged, collected by the lot operator and remitted to the Department of Finance.
there is imposed upon the use and privilege of parking a motor vehicle in or upon any parking lot or garage in the City of Chicago a tax at the applicable rate set forth in subsection (d)... The tax imposed by this chapter for the privilege of parking for a 24-hour period or less, on a weekly basis, and on a monthly basis shall be 23.25% of the charge or fee paid for parking.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-74: Current through Council Journal of June 17, 2026).
Full Breakdown
Municipal Code of Chicago § 4-236-020 imposes the Parking Lot and Garage Operations Tax on the use and privilege of parking a motor vehicle in or upon any parking lot or garage in the City, covering 24-hour-or-less, weekly, and monthly parking. The rate is 23.25% of the charge or fee paid for parking, and it must be stated and shown separately from the parking charge on any receipt. Operators must secure the tax from the customer at the time payment is collected and remit it to the Department of Finance under procedures set by the Comptroller of Revenue. Exemptions cover residential tenant or condo parking arranged in a lease, hospital-employee lots, low-fee government-owned lots, and small lots with three or fewer paid spaces.
Violations & Fines
Noncompliance is enforced under the Uniform Revenue Procedures Ordinance (MCC Ch. 3-4), which applies whenever Chapter 4-236 is silent: operators who fail to collect or remit face back tax, interest, and penalties assessed by the Comptroller of Revenue.
Frequently Asked Questions
Does the Chicago parking tax apply to on-street meters?
Is parking included in an apartment or condo lease taxed?
Sources & Official References
Other rules in Chicago
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Parking Tax in Nearby Cities
How other cities in Cook County handle parking tax.