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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