Chicago Rental Tax Increase: What You Need to Know for 2025

Starting January 1, 2025, the City of Chicago will implement an increase in its rental tax rate. The rental tax, currently set at 9%, will rise to 11%, impacting all rentals, including event furniture rentals in Chicago and other short-term equipment rentals.

At Modern Event Rental, we are committed to keeping our clients informed about changes that may affect their event planning budgets. This adjustment in tax rates is significant, especially for those organizing corporate events, trade shows, weddings, and other large gatherings in Chicago. Here’s what you need to know about this change and how it may affect you.

What Is the Rental Tax?

The rental tax is a levy imposed by the City of Chicago on the rental of personal property, including event furniture, equipment, and other short-term rentals. This tax applies to businesses providing rental services within city limits, ensuring that the city generates revenue for public services and infrastructure.

Key Details About the Tax Increase:

• Effective Date: January 1, 2025
• New Rate: 11% (up from 9%)
• Applicability: All rental transactions within Chicago’s city limits, including event furniture rentals, AV equipment, and decor.

How This Affects Event Budgets:

For clients renting items from Modern Event Rental, the new tax rate will be applied to your total rental cost. For example:

• Previous Rate: On a $1,000 rental, the 9% tax added $90, making the total $1,090.
• New Rate: At 11%, the tax will add $110, making the total $1,110.

While this increase represents a modest adjustment, it’s essential to factor it into your event budget to avoid surprises.

Why Is the Tax Increasing?

The City of Chicago has stated that the tax increase is part of broader efforts to fund city services, including public safety, education, and infrastructure development. This adjustment aligns with the city’s financial strategy to meet growing demands while maintaining a balanced budget.

Modern Event Rental’s Commitment to Transparency

At Modern Event Rental, we pride ourselves on providing clear and upfront pricing. While this tax increase is beyond our control, we are dedicated to helping our clients navigate these changes seamlessly. Our team will ensure that all quotes and invoices reflect the updated tax rate starting in 2025.

Planning Ahead

If you have an event scheduled for early 2025 or later, we encourage you to reach out to our team to review your budget and finalize your rental needs. By planning ahead, you can avoid any last-minute adjustments and ensure your event stays on track.

For more information about the new rental tax or assistance with your upcoming event, contact us at:

• Email: rentals@moderneventrental.com
• Phone: 800-275-6015

We’re here to help make your event a success, even as tax changes come into effect. Thank you for choosing Modern Event Rental as your trusted partner for event furniture rentals in Chicago!