Attention shoppers: deadline looms for Chicago grocery tax

Mayor, alders face October 1 deadline for maintaining 1% levy
Chicago Ald. Angela Clay (46th Ward) and Mayor Johnson pose after a tour of Uptown, September 17, 2025.
Chicago Ald. Angela Clay (46th Ward) and Mayor Johnson pose after a tour of Uptown, September 17, 2025. Photo credit : Geoff Buchholz

Leaders in Chicago have less than two weeks to take action on whether to maintain a tax on groceries, or they could face a big cleanup in the budget aisle.

That 1% grocery tax has been a political hot potato ever since state lawmakers voted last year to stop collecting it. The proceeds from that tax went to local governments, which face a deadline of October 1 to either ask the state to keep collecting it for them, or let it lapse. As of now, dozens of suburban communities have voted to ask the state to keep collecting that tax.

Chicago Mayor Brandon Johnson's budget team have said the city needs the $80 million that tax generates as the city works to fill the estimated $1.1 billion budget revenue shortfall for next year.

And after touring Uptown during his "Day In The Ward" event on Wednesday, the Mayor said he's in favor of maintaining it.

"This has been a tax that's been around for over 30 years," said the mayor during an appearance at Clarendon Park Fieldhouse, 4501 N. Clarendon. "I'm not in favor of raising the number of that particular tax, but this is something that the City Council will explore," said the mayor.

However, a proposed ordinance that would maintain the tax at its current 1% rate has been parked in committee since June. And the mayor says his major focus is finding ways for wealthier Chicagoans and large corporations here to pay more.

"The ultimate goal is to make sure those with means put more skin in the game," said the mayor, who repeated his assessment that a new report from a budget working group he commissioned concluded that "Chicago does not have a spending problem ... Chicago has a revenue challenge."

Uptown alderwoman Angela Clay (46th Ward) led the mayor on a tour of spots including the Uptown Theatre ... and afterward, hinted at what could be a difficult conversation about the future of that tax.

"Passing it is just a matter of getting in a room together to have some real deep conversations about the impact and the effect it's going to have on our communities," Ald. Clay said.

If the sales tax is approved after October 1, the city may risk not seeing as much revenue as hoped. The next City Council meeting is September 25.

Featured Image Photo Credit: : Geoff Buchholz