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Sales tax and VAT updates for modern finance teams

Anrok’s team of tax experts shares the latest rate changes, taxability updates, and other news you need to know.

Illinois

Chicago cloud tax jumps to 15% in 2026

December 22, 2025

Chicago Mayor Brandon Johnson refused to veto the city’s 2026 budget on December 23, 2025, thereby approving an increase to the Personal Property Lease Transaction Tax (PPLTT) from 11% to 15% effective January 1, 2026. This follows the previous increase from 9% to 11% that took effect January 1, 2025. The PPLTT applies to businesses that lease or rent personal property in Chicago, including cloud computing services, SaaS platforms, and software accessed remotely by Chicago customers.

The bottom line: Cloud service providers and SaaS companies operating in Chicago must update their tax collection systems before January 1, 2026 to reflect the new 15% rate. 

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