Ground Transportation Tax Changes for City Livery Plate Holders Effective July 1, 2026

Ground Transportation Tax - July 1, 2026 change affecting City Livery license holders

Effective July 1, 2026, ground transportation providers with City-issued livery (LY) plates will now be charged a flat $98.00 monthly fee as the Ground Transportation Tax due per vehicle/plate instead of the previous tax rate of $3.50 per day the plate is used in Chicago.

• For accounts with either 1 or 2 City "LY" plates, the tax will be payable annually. The annual charge will be $1,176.00 per LY plate that remains in active status for all 12 months of the year ($98.00 * 12 months). Tax payments for the 7/1/2026 - 6/30/2027 fiscal tax year for "annual" payers will be due by 7/15/2027.
• For accounts with 3 or more City "LY" plates, the tax will be payable quarterly by the 15th day of the month following the end of each quarter. For example, an account with 3 active Chicago "LY" plates during all months of the 3rd quarter of 2026 (July 1 - September 30) will need to pay a total of $882.00 by October 15, 2026. ($98.00 per month * 3 months * 3 LY licensed vehicles).

City-issued livery accounts will no longer need to file Ground Transportation Tax returns as for periods beginning with the July 1, 2026 - June 30, 2027 tax year. Additionally, as of July 2, 2026, city-issued livery holders will no longer be automatically charged $3.50 for each day a vehicle makes an airport pickup in Chicago.

Note that the changes outlined above do not apply to suburban-based taxi and livery companies, who will continue to be required to file the annual Ground Transportation Tax return (form 7595) for the tax year July 1, 2026 - June 30, 2027, and beyond. Suburban taxi and livery companies will also continue to be automatically charged $3.50 per day per vehicle that makes an airport pickup in Chicago.

Taxpayers with questions can send an email to [email protected] or call us at (312) 747-4747 weekdays from 8 a.m. - 5 p.m.