Tax Return Form Code:

The Checkout Bag Tax is imposed on the retail sale or use of checkout bags in Chicago.

As of 1/1/2025: Tax is imposed at $0.10 per checkout bag sold or used in the City.

Prior to 1/1/2025: Tax is imposed at $0.07 per checkout bag sold or used in the City.

Exemptions, Deductions and Credits:

A. This tax shall not apply to the extent it would violate the United States Constitution or the Constitution of the State of Illinois.

B. This tax shall not apply to the retail sale or use of checkout bags that are used to carry items purchased pursuant to the Supplemental Nutritional Assistance Program or a similar governmental food assistance program.

C. It shall be presumed that checkout bags sold or used by wholesalers and stores are subject to the tax imposed under this chapter until the contrary is established. The burden of proving that such checkout bags are not taxable hereunder shall be upon the person so claiming.

D. As of 1/1/2025: In remitting the tax to a wholesaler, a store shall be allowed a credit of one cent ($0.01) per checkout bag purchased.

E. As of 1/1/2025: In remitting the tax to the Department, a wholesaler shall be allowed the same one-cent-per-bag ($0.01) credit provided in (D), resulting in a nine-cents-per-bag ($0.09) required remittance to the Department.

Rulings and Procedures:

3-50 Chicago Checkout Bag Tax Ordinance

Checkout Bag Tax Affidavit for Apportionment

Checkout Bag Tax FAQs

Checkout Bag Tax Placard

Checkout Bag Tax - Sample store receipts

Guidance on the Checkout Bag Tax