The city of Chicago has raised the amusement tax on streaming services from 9% to 10.25%. The city also raised personal property lease taxes on cloud computing from 9% to 11%. These tax hikes are going into effect as part of the city‘s attempt to manage its $900 million deficit.

The bottom line: These tax changes went into effect on January 1, 2025. Chicago‘s tax increases on streaming services and cloud computing signal continued complexity and heightened scrutiny in digital service taxation as the city tackles its budget deficit.