CHICAGO, UPDATED, October 4, 2015 – World Business Chicago (WBC) today released a study conducted by KPMG LLP, the global audit, tax and advisory firm, which estimates the total burden of government taxes to businesses and residents in Chicago.
The KPMG study indicates that the tax burden to business is in line with other U.S. cities.
For residents, the study also indicates that for people who choose to live in the Chicago area, the tax burden in the city of Chicago is the lowest when compared to alternatives in suburban Cook, Lake, DuPage, Kane and Will counties.
Subsequent to the baseline analysis, WBC asked KPMG to conduct an analysis that compared Chicago’s tax burden on businesses and residents assuming an increase in property tax rates necessary to generate an additional $600 million in property tax revenue.
The scenario testing found that even at the $600 million additional revenue scenario, Chicago still has the lowest residential tax burden among surrounding municipalities, and the tax burden remains competitive with U.S. peer cities for business.
Estimated Tax Burden for a Professional Services Firm at $600MM additional property tax levy scenario and 1% increase in Sales Tax for Chicago
Estimated Tax Burden for a Couple (household with 2 people) with an annual income of $100,000 at $600MM additional property tax levy scenario with $14,000 homeowner exemption
Read the Executive Summary
Read the Full Study
Chaired by Mayor Rahm Emanuel, World Business Chicago drives regional economic growth. WBC collaborates to create jobs, cultivate talent, and put Chicago at the forefront of the global economy. A unique public-private partnership, WBC engages business and community leaders to advance Chicago’s Plan for Economic Growth and Jobs.