Chicago proposes new taxes on big businesses and tech services to fix a $1.15B deficit, avoiding property tax hikes.

Chicago Mayor Brandon Johnson has unveiled a $16.6 billion 2026 budget proposing new taxes on large corporations, cloud computing, social media, rideshare services, and sports betting to address a $1.15 billion deficit, while avoiding property tax hikes. The plan includes a $21 monthly corporate head tax on businesses with over 100 employees in the city, projected to raise $100 million annually, and a 14% cloud services tax. Illinois Governor J.B. Pritzker has publicly opposed the corporate head tax, warning it could harm job growth and deter business investment, marking a rare clash between the city and state leadership. The city council is reviewing the budget, with a final vote expected by year’s end, though legal challenges and fiscal concerns over long-term reliance on tax increment financing surpluses remain.