By Jared Walczak, The Tax Foundation
When Cook County, Illinois adopted a one percentage point county sales tax increase on July 15th, its county seat — Chicago — vaulted to the top of a dubious list: major cities with the highest sales tax. Including state, county, city, and public transit sales tax impositions, Chicago’s combined sales tax will return to its former high of 10.25 percent as of January 1.
I’ve received a number of calls and emails asking if Chicago’s pending rate represents the highest combined state and local sales tax in the nation. It won’t. That distinction goes to a handful of towns in Tennessee and one in Arkansas (with 12 percent combined rates), all with populations of a few thousand people or less. A smattering of small municipalities in Arizona, Louisiana, and Oklahoma also feature higher combined rates.