Your tourist souvenirs in the Windy City just got a little more expensive. As of November 2008, Chicago will become the most expensive city in the United States for paying sales tax.
Cook County voted to double the county sales tax to 1.75% putting Chicago’s total sales tax bite at a whopping 10.25%. That officially makes Chicago the city with the highest sales tax in the country – a dubious honor for sure. It may make sense for many Chicago residents to consider taking a sales tax deduction on their respective federal income tax returns at that rate.
Previously, the highest rate in the country was 9.25% for… Memphis? Yeah, I was surprised, too.
New York City, Philadelphia and Los Angeles pay less than 8.5%.
Are you reading, Philly? For once, we are not number one in taxes (insert loud applause and whistles here).
Be sure and chime in on my prior sales tax survey and let me know the sales tax rates where you live.