Several municipalities will implement a new Simplified Municipal Telecommunications Tax rate starting July 1, according to an April 7 announcement. The change will affect certain areas outside Chicago.
The adjustment is significant for residents and businesses that use telecommunications services in these municipalities. It combines the state and local tax rates into a single, simplified structure.
According to the announcement, the combined tax rate consists of the State Telecommunications Excise Tax at 8.65 percent and a local Simplified Municipal Telecommunications Tax of up to six percent. This new structure does not apply within Chicago but affects other municipalities across Illinois.
Further details are available in Informational Bulletin FY 2026-19, which outlines the specifics of these upcoming changes. Residents and businesses are encouraged to review this bulletin for more information on how they may be affected by the revised tax rates.
The move toward a simplified municipal telecommunications tax is intended to streamline taxation for both service providers and consumers.
