Bring Your Own Bag – Chicago Checkout Bag Tax Effective 2-1-17


On November 16, 2016, the City of Chicago adopted the Chicago Checkout Bag Tax, a $.07 tax on the retail sale or use of paper and plastic checkout bags in Chicago. Retail merchants are entitled to retain $.02, and the remaining $.05 is remitted to the City.

After passage, the Department of Finance heard from many businesses who asked for a delay in the implementation in order to properly program the tax into their point of sales systems.  In order to allow for seamless start, the implementation of the Checkout Bag Tax was delayed until Wednesday, February 1, 2017.  (Source:  42 Ward Report of 1-6-17).

For more information about the Checkout Bag Tax, click here.