If you rent furniture, staging or AV for an event in Chicago, your invoice now carries a bigger tax line. The Chicago rental tax, officially the Personal Property Lease Transaction Tax, rose to 15% of rental charges on January 1, 2026. Here’s what changed, when the tax applies to your event, who may be exempt, and how to budget for it.
According to the City of Chicago Department of Finance, the rate has climbed quickly:
The tax applies to leases of personal property used in Chicago, which covers event furniture, bars, registration counters, staging, lighting and AV equipment. The city raised the rate as part of its 2026 tax rate changes.
For every $10,000 in rental charges, the Chicago rental tax is now $1,500. The same order cost $1,100 in tax in 2025 and $900 before that. On a large trade show or conference program, that difference adds up quickly.
The tax follows where the rented property is used, not where the rental company is based. The city’s rules exempt property that is leased outside the city and primarily used outside the city.
Our warehouse is in Elk Grove Village, but that doesn’t change the tax. What matters is where your event takes place.
The ordinance exempts certain lessees: government bodies, and charitable, educational and religious organizations. Exempt organizations generally need to give the rental company documentation before the event. Not every nonprofit fits these categories, so if you’re a trade association or another type of nonprofit, confirm your status with your tax advisor before assuming an exemption.
Budgeting a year-end event? See our corporate holiday party furniture guide. Exhibiting at McCormick Place? See our trade show furniture guide and McCormick Place EAC guide.
Tell us your venue and dates and we’ll quote your lounge furniture, event bars, registration counters and other rentals, and confirm how the Chicago rental tax applies to your venue.
This article is general information, not tax advice. For your organization’s situation, talk to your tax advisor or the City of Chicago Department of Finance.
15% of lease or rental charges for personal property used in Chicago, effective January 1, 2026. The rate was 11% in 2025 and 9% before that.
Yes. Event furniture, bars, counters, staging and AV equipment rented for use in Chicago are leases of personal property, so the tax applies to the rental charges.
Rosemont is outside Chicago city limits, and the city exempts property leased outside the city and primarily used outside it. Other local taxes may apply, so confirm with your rental vendor.
Government bodies and charitable, educational and religious organizations are exempt lessees under the ordinance. Other nonprofits may not qualify. Confirm with a tax advisor and give your vendor exemption documentation before the event.
$1,500 at the 2026 rate of 15%, compared with $1,100 at the 2025 rate of 11%.
Modern Event Rental provides event furniture for trade shows, conferences and corporate events across Chicago, from lounges and LED bars to custom branded counters. Tell us about your event and we’ll put together a quote.
