The City of Chicago Restaurant Tax is a 0.50% local tax on the retail sale of prepared food and beverages sold for immediate consumption, filed monthly on Form 7525 with the Chicago Department of Finance through the Chicago Tax Portal. Restaurants, taverns, food trucks, caterers, and grocery stores with prepared-food counters all owe this tax, and downtown businesses inside the McCormick Place expansion subdistrict owe an additional 0.25% MPEA Food and Beverage Tax collected by the Illinois Department of Revenue under 70 ILCS 210/13.
According to the Chicago Department of Finance 2024 Annual Tax Collection Report, the city collected over $46 million in restaurant tax revenue in 2024 from roughly 7,400 active restaurant tax accounts, and the department’s audit division flagged a 14% error rate on monthly Form 7525 filings — most often from misclassifying exempt grocery items or omitting delivery service charges from taxable receipts.
- 🍕 Exactly which sales count as “prepared food” under Chicago Municipal Code §3-30 and which are exempt
- 🧾 How to fill out every line of Form 7525 with named-person examples
- 🗺️ How to tell if your address falls inside the MPEA subdistrict that triggers the extra 0.25%
- 💸 Current penalty rates, interest charges, and the 51% food-sales rule for taverns
- 📅 Filing deadlines, payment channels, annual filer thresholds, and proof-of-filing tips
What the Chicago Restaurant Tax Is and Who Must File It
The Chicago Restaurant Tax is a privilege tax imposed on each “place for eating” located in the City of Chicago, authorized under Chicago Municipal Code Chapter 3-30. The tax rate is 0.50% of the retail selling price of all food and beverages prepared for immediate consumption, and it is collected from the customer at the point of sale and remitted by the operator to the Chicago Department of Finance.
A “place for eating” is defined as any business that sells food prepared for immediate consumption, including dine-in restaurants, fast food outlets, coffee shops, bars and taverns, food trucks licensed in Chicago, caterers delivering inside city limits, and grocery stores that operate hot food counters or salad bars. The tax applies even when the food is taken to go, delivered, or sold through a third-party app like DoorDash or Uber Eats, because the Department of Finance Information Bulletin on Restaurant Tax treats the operator as the legal taxpayer regardless of delivery channel.
Businesses inside the McCormick Place expansion subdistrict — roughly the area bounded by Diversey Parkway on the north, Ashland Avenue on the west, the Stevenson Expressway on the south, and Lake Michigan on the east — must also collect an additional 0.25% MPEA Food and Beverage Tax under the MPEA Act at 70 ILCS 210/13. The MPEA tax is filed separately on Form ST-4 with the Illinois Department of Revenue MyTax Illinois portal.
Taverns and bars are subject to the tax only if more than 51% of gross receipts come from food sales, per the Chicago Department of Finance Restaurant Tax Ruling. Grocery stores are partially liable: cold packaged goods are exempt, but hot foods, made-to-order sandwiches, and seating areas trigger the tax on those specific receipts. Failure to register triggers a flat $250 penalty plus back tax, interest, and a possible business license review by the Chicago Department of Business Affairs and Consumer Protection.
Before You Start: Documents and Information You Need
Gather every document below before you log in to the Chicago Tax Portal, because partial entries time out after 20 minutes and you will lose your work. A complete pre-filing checklist saves an average of 35 minutes per month and reduces the chance of a math error that triggers an automated assessment notice.
- Chicago Account Number. This 7-digit number is assigned when you register for restaurant tax through the Chicago Business Direct portal. Without it, the portal will not let you file, and using the wrong number posts your payment to another taxpayer’s account.
- Illinois Business Tax (IBT) Number. Issued by the Illinois Department of Revenue, this 8-digit number reconciles your city filing to your state Form ST-1.
- Federal Employer Identification Number (FEIN). Required on the registration profile and on every Form 7525 cover page.
- Monthly POS gross sales report. You need both gross food sales and gross beverage sales separated from non-taxable merchandise, because the audit division compares your Form 7525 to your Form ST-1 line by line.
- Exempt sales documentation. Keep receipts for sales to 501(c)(3) organizations and resale sales, because the burden of proof is on the operator under Municipal Code §3-30-040.
- Delivery and service charge logs. Tips paid directly to staff are not taxable, but mandatory service charges and delivery fees are taxable receipts.
- MPEA boundary determination. Confirm whether your address sits inside the MPEA zone using the Cook County Assessor parcel viewer cross-referenced with the Illinois MPEA boundary map.
- Prior month’s filed Form 7525. Useful for confirming your account number, your filing frequency, and any credits carried forward.
- Bank account routing and account numbers. Required for ACH debit payment through the portal.
- Federal Form 8300 records. If you accepted more than $10,000 in cash from a single customer (a catering deposit, for example), you also have a federal reporting requirement that the city audit division will ask about.
Where to Get the Form and How to Access It
The official Form 7525 lives on the Chicago Department of Finance tax forms page, and the current revision date printed at the bottom of the form is Rev. 01/2025. Always confirm the revision date before filing, because the city periodically updates the form when the MPEA rate or the city rate changes, and using a prior version triggers a “form not accepted” rejection.
To file online, go to the Chicago Tax Portal and select “File a Return,” then choose Tax Type 7525 — Restaurant Tax. The portal pre-populates your account number, business name, and filing period once you log in with your registered username. First-time users must register through Chicago Business Direct, which takes about 10 business days for account approval.
Paper filers can mail Form 7525 to Chicago Department of Finance, Tax Division, 333 S. State Street, Suite 300, Chicago, IL 60604, but paper filing is discouraged because the department processes electronic returns within 3 business days and paper returns within 4 to 6 weeks. Annual filers — operators with $200 or less in restaurant tax due per year — file once on the Annual Tax Return Form 7506 by August 15 instead of monthly Form 7525.
Step-by-Step: How to Fill Out Form 7525 Line by Line
Form 7525 has one cover page with taxpayer identification, a Schedule A for gross receipts, a Schedule B for deductions, and a Schedule C for tax computation and payment. Each H3 below walks through one field exactly as it appears on the official Rev. 01/2025 form.
Line 1 — Account Number
This field asks for your 7-digit Chicago Account Number assigned by the Department of Finance at registration. Enter the number exactly as it appears on your registration confirmation letter, with no dashes, no spaces, and no leading zeros dropped.
For example, Maria Lopez, owner of La Catrina Tacos in Pilsen, enters 1234567 in Line 1. If your business has multiple locations under one parent entity, each location has its own account number, and you file a separate Form 7525 for each.
What if your registration is still pending? Do not file Form 7525 with a placeholder; instead, request expedited registration through Chicago Business Direct so the account is issued before your filing deadline. The most common mistake is entering the IBT number from Illinois instead of the Chicago account number, which routes your payment to a non-existent city account and triggers a non-filer notice within 30 days.
A misconception is that the federal EIN can substitute for the account number; it cannot, because the city uses an internal numbering system that does not map to the IRS database.
Line 2 — Business Legal Name and DBA
This field asks for the legal name of the entity that owns the restaurant and any “doing business as” name. Enter the legal name first in all caps, then the DBA on the second line, matching exactly the name on your Chicago Business License.
For example, Carlos Rivera writes RIVERA HOSPITALITY GROUP LLC on the legal name line and EL POLLO LOCO #44 on the DBA line. If the legal entity changed during the filing period — say, an LLC converted to a corporation — file a Tax Registration Update before submitting Form 7525.
The most common mistake is using a trade name as the legal name, which causes the audit division to flag the return because the FEIN does not match the legal name on file. A widespread misconception is that the city accepts any name “the customer knows you by”; the city only accepts the legal name registered with the Illinois Secretary of State or the sole proprietor’s full legal name.
Line 3 — Filing Period
This field asks for the calendar month and year covered by the return, in MM/YYYY format. Enter the month in which the sales occurred, not the month in which you file the return.
For example, for sales made in March 2026, Aisha Johnson — who runs Aisha’s Soul Kitchen on the South Side — enters 03/2026 in Line 3. The return is then due by April 15, 2026.
What if you discover an error after filing? File an amended Form 7525 marked “AMENDED” at the top, covering the same MM/YYYY period; do not file a new original. The most common mistake is entering the filing date (April 2026) instead of the sales period (March 2026), which causes a duplicate filing rejection. A misconception is that “filing period” refers to your fiscal year quarter; for restaurant tax, the period is always one calendar month for monthly filers.
Line 4 — Total Gross Receipts From Food and Beverage Sales
This field asks for every dollar collected from prepared food and beverage sales before any deductions, exemptions, or sales tax is removed. Enter the total in dollars and cents, rounded to the nearest cent, with no dollar sign.
For example, Marcus Chen, who owns Loop Noodle Bar inside the MPEA zone, enters 84,250.75 for March 2026. This figure must reconcile to the gross receipts line on his Illinois Form ST-1 for the same period within a 1% tolerance.
What if you operate a tavern? Include all food and beverage gross receipts on Line 4, then use Schedule B to deduct alcohol sales if your food share is below the 51% threshold. The most common mistake is entering net sales after sales tax has already been backed out, which understates the tax base and triggers an automated assessment for the difference. A misconception is that delivery app commissions reduce gross receipts; under Chicago Department of Finance Ruling 12, the operator reports the full menu price charged to the customer, not the net amount remitted by the app.
Line 5 — Exempt Sales (Schedule B)
This field asks for total exempt sales subtracted from Line 4, including resale sales, sales to qualifying 501(c)(3) organizations with a valid Illinois Sales Tax Exemption (E) Number, and sales of cold packaged grocery items. Enter the total exemption amount and attach Schedule B detailing each exemption category.
For example, Janet Park, who caters at Park Catering Co., enters 4,200.00 on Line 5 for a March wedding paid by St. Mark’s Church under E-Number E9999-9999. She keeps a copy of the church’s exemption certificate for six years per city audit retention rules.
What if a customer claims exemption verbally? Do not grant the exemption without a written, signed Illinois Form CRT-61 Certificate of Resale or an E-number letter; verbal exemptions are not honored under Municipal Code §3-30-040. The most common mistake is deducting employee meals as exempt; employee meals provided for free are exempt, but discounted employee meals remain taxable on the discounted price. A misconception is that all sales to government entities are exempt; sales to federal agencies are exempt, but sales to most local government employees on personal accounts are not.
Line 6 — Net Taxable Receipts
This field asks for Line 4 minus Line 5, representing the actual base on which the 0.50% city restaurant tax is computed. Enter the result, rounded to the nearest cent.
For example, Marcus Chen subtracts 1,500.00 in resale beverage sales from his 84,250.75 gross to enter 82,750.75 on Line 6. He double-checks the subtraction because a single transposed digit propagates to every line below.
What if Line 6 is negative due to refunds? Enter zero on Line 6 and carry the negative balance forward as a credit on next month’s Line 11. The most common mistake is forgetting to subtract Line 5 from Line 4, which inflates the tax owed by the exemption amount times 0.50%. A misconception is that tips show up here; voluntary tips paid directly to staff never enter Form 7525 at any line.
Line 7 — City Restaurant Tax Due (0.50%)
This field asks you to multiply Line 6 by 0.005 and enter the resulting tax. Round the calculation to the nearest cent.
For example, Marcus Chen multiplies 82,750.75 × 0.005 = 413.75 and enters 413.75 on Line 7. The portal auto-calculates this line for online filers, but paper filers must compute it manually.
What if you file in the MPEA zone? Line 7 covers only the city tax; the additional 0.25% MPEA tax is reported separately on Illinois Form ST-4, not on Form 7525. The most common mistake is using the wrong rate — older Form 7525 versions used 0.25% before the rate was raised, and some operators copy from prior-year templates. A misconception is that you can combine city and MPEA tax on one line; the two taxes go to different agencies and must be reported separately.
Line 8 — Late Filing Penalty
This field asks for any late filing penalty owed if the return is filed after the 15th of the month following the sales period. The penalty is 5% of the tax due per month, capped at 25%, under Municipal Code §3-4-190.
For example, if Janet Park files March 2026 on May 3, 2026 — 18 days late into the second month — she enters 10% of her Line 7 amount on Line 8. On a $200 Line 7, that is $20.00.
What if the late filing was caused by a portal outage? Request a penalty waiver within 30 days with documentation of the outage, but pay the penalty up front to stop interest. The most common mistake is calculating the penalty on Line 6 instead of Line 7, which overstates the penalty by 200×. A misconception is that filing on the 16th is “one day late”; under city rules, any filing after midnight on the 15th is treated as a full month late for penalty purposes.
Line 9 — Interest
This field asks for interest at the current city rate, posted quarterly on the Chicago Department of Finance interest rate page. The 2026 rate is 12% per year, computed daily as Line 7 × 0.12 × (days late ÷ 365).
For example, Aisha Johnson files 30 days late on $500 of tax: 500 × 0.12 × (30÷365) = 4.93, so she enters 4.93 on Line 9. Interest accrues even if a penalty waiver is granted.
What if the underpayment is from an honest math error? Interest is mandatory under Municipal Code §3-4-190 regardless of intent; only penalty can be waived. The most common mistake is using a 360-day year instead of a 365-day year. A misconception is that the city compounds interest monthly; city interest is simple interest, not compound.
Line 10 — Total Amount Due
This field asks for the sum of Line 7, Line 8, and Line 9. Enter the total in dollars and cents.
For example, Marcus Chen’s March return shows 413.75 + 0.00 + 0.00 = 413.75 on Line 10 because he files on time. The portal will not accept a payment less than Line 10, but it will accept overpayments which post as credits.
What if you cannot pay the full amount? File the return on time anyway, then request a payment plan; filing without paying avoids the late filing penalty even when the late payment penalty applies. The most common mistake is rounding the total up to the nearest dollar, which overpays by cents and creates reconciliation problems. A misconception is that overpayments automatically refund; they do not — you must request a refund on Form 7506-Refund within four years.
Line 11 — Credit Carried Forward
This field asks for any prior overpayment you want applied to this return. Enter the credit amount, which must match the credit balance shown on your Chicago Tax Portal account dashboard.
For example, Carlos Rivera carries forward 88.00 from a February overpayment and enters 88.00 on Line 11, reducing his Line 10 balance from 413.75 to 325.75. He attaches a copy of the prior month’s confirmation showing the credit balance.
What if the credit exceeds the tax due? Apply only the portion needed to bring Line 10 to zero, and leave the remainder on the account for the next month. The most common mistake is double-claiming a credit already used in a prior month, which creates a deficiency the audit division will recover with interest. A misconception is that credits expire after one year; restaurant tax credits remain on the account for four years per Municipal Code §3-4-150.
Line 12 — Authorized Signature and Date
This field asks for the signature, printed name, title, and phone number of an officer or owner authorized to bind the taxpayer. Sign in blue or black ink on paper returns; check the e-signature attestation box on portal returns.
For example, Maria Lopez signs as Maria Lopez, Owner, (312) 555-0142, dated 04/12/2026. The signature certifies under penalty of perjury that the return is true and complete.
What if a bookkeeper files for the owner? The bookkeeper signs only if they have a power of attorney on Form IL-2848 on file with the Department of Finance; otherwise the owner must sign. The most common mistake is signing with initials or a digital stamp not tied to a real person, which the city treats as an unsigned return. A misconception is that filing electronically removes the signature requirement; the e-signature checkbox is the legal equivalent of a handwritten signature.
Three Filled-Out Examples Using Real Scenarios
Scenario 1 — Maria Lopez, La Catrina Tacos (Pilsen, outside MPEA zone)
| Form Section | What Maria Enters |
|---|---|
| Line 1 — Account Number | 1234567 |
| Line 2 — Legal Name / DBA | LOPEZ FOOD LLC / LA CATRINA TACOS |
| Line 3 — Filing Period | 03/2026 |
| Line 4 — Gross Receipts | 42,180.00 |
| Line 5 — Exempt Sales | 0.00 |
| Line 6 — Net Taxable | 42,180.00 |
| Line 7 — City Tax (0.50%) | 210.90 |
| Line 8 — Penalty | 0.00 |
| Line 10 — Total Due | 210.90 |
| Line 12 — Signature | Maria Lopez, Owner, 04/12/2026 |
Maria does not file an MPEA Form ST-4 because Pilsen sits outside the subdistrict.
Scenario 2 — Marcus Chen, Loop Noodle Bar (Inside MPEA zone)
| Form Section | What Marcus Enters |
|---|---|
| Line 1 — Account Number | 7654321 |
| Line 2 — Legal Name / DBA | CHEN HOSPITALITY INC / LOOP NOODLE BAR |
| Line 3 — Filing Period | 03/2026 |
| Line 4 — Gross Receipts | 84,250.75 |
| Line 5 — Exempt Sales (resale beverages) | 1,500.00 |
| Line 6 — Net Taxable | 82,750.75 |
| Line 7 — City Tax (0.50%) | 413.75 |
| Line 10 — Total Due (city) | 413.75 |
| MPEA Form ST-4 (0.25%) | 206.88 (filed separately on MyTax Illinois) |
| Line 12 — Signature | Marcus Chen, President, 04/15/2026 |
Marcus files Form 7525 with the city and Form ST-4 with the state on the same day to avoid mismatched periods.
Scenario 3 — Janet Park, Park Catering Co. (Mobile catering across Chicago)
| Form Section | What Janet Enters |
|---|---|
| Line 1 — Account Number | 9988776 |
| Line 2 — Legal Name / DBA | PARK CATERING CO LLC / PARK CATERING |
| Line 3 — Filing Period | 03/2026 |
| Line 4 — Gross Receipts | 18,400.00 |
| Line 5 — Exempt (St. Mark’s Church, E9999-9999) | 4,200.00 |
| Line 6 — Net Taxable | 14,200.00 |
| Line 7 — City Tax (0.50%) | 71.00 |
| Line 8 — Penalty (filed 18 days late) | 7.10 |
| Line 9 — Interest | 0.42 |
| Line 10 — Total Due | 78.52 |
| Line 12 — Signature | Janet Park, Managing Member, 05/03/2026 |
Janet attaches the church’s exemption certificate to Schedule B and pays by ACH debit through the Chicago Tax Portal.
How to File the Completed Form
The fastest and most reliable channel is the Chicago Tax Portal, which accepts ACH debit, ACH credit, and credit card payments (with a 2.45% convenience fee). Online returns post within 3 business days, and the portal emails a confirmation number that serves as proof of filing — save this PDF for at least six years.
Paper filers mail Form 7525 with a check payable to “City of Chicago” to Chicago Department of Finance, Tax Division, 333 S. State Street, Suite 300, Chicago, IL 60604. Mailed returns post 4 to 6 weeks after receipt, and the postmark date is the official filing date under Municipal Code §3-4-180. Always send by certified mail with return receipt to keep a stamped proof of filing in case the return is lost in transit.
In-person filing is accepted at the City Hall Cashier, 121 N. LaSalle Street, Room 107A, Monday through Friday, 8:00 a.m. to 4:30 p.m. The cashier accepts check, money order, or cash up to $10,000, and stamps your copy of Form 7525 as the proof of filing. Fax filing is no longer accepted as of 2023; do not use any old fax instructions found in pre-2023 guides.
Annual filers file once per year on Form 7506 by August 15 covering the prior July through June period; the same channels apply, but the annual filer threshold is $200 of restaurant tax per year, not $200 in receipts. MPEA Form ST-4 is filed exclusively through MyTax Illinois — the city portal does not accept MPEA filings.
What Happens After You File
Within 3 business days of an electronic filing, the Chicago Tax Portal updates your account dashboard with a “Return Posted” status and a confirmation PDF. Paper filings show “Return Posted” 4 to 6 weeks after the city receives the envelope, and during that gap the account dashboard shows the period as “Open” — do not refile.
The Department of Finance audit division uses an automated cross-match between Form 7525 and Illinois Form ST-1 monthly receipts, and discrepancies greater than 1% trigger a Notice of Tax Determination and Assessment within 90 to 180 days. Operators have 35 days to protest the assessment under Municipal Code §3-4-330, and missing the protest window converts the assessment into a final, non-appealable judgment.
If the return shows an overpayment, the credit posts to the account dashboard within 3 business days and rolls forward automatically to the next month’s Line 11. Refund requests must be filed on Form 7506-Refund within four years of the original filing. Routine audits cover three years of returns, and audits triggered by fraud have no statute of limitations.
Mistakes to Avoid When Filling Out the Form
- Using the wrong account number. Routes the payment to another taxpayer and leaves your account in non-filer status.
- Reporting net sales instead of gross. Understates Line 4 and triggers an automated assessment for the missing tax.
- Omitting third-party delivery sales. The full menu price charged to the customer is taxable, not the net app remittance.
- Misclassifying mandatory service charges as tips. Mandatory charges are taxable; voluntary tips are not.
- Skipping Schedule B for exemptions. Line 5 deductions without Schedule B documentation are disallowed in audit.
- Filing the wrong revision of Form 7525. Pre-2025 forms are rejected automatically by the portal.
- Confusing MPEA tax with city tax. They go to different agencies and require separate returns.
- Computing the penalty on Line 6 instead of Line 7. Overstates penalty by 200× and overpays the city.
- Forgetting to sign Line 12. Unsigned returns are treated as not filed and accrue late penalties.
- Failing to keep records for six years. Municipal Code §3-4-140 requires six-year retention; shorter retention means the auditor presumes the city’s number.
- Using fiscal year instead of calendar month. Restaurant tax is always reported on the calendar month, never the fiscal quarter.
- Filing one combined return for multiple locations. Each location needs its own account number and its own Form 7525.
Do’s and Don’ts
- Do reconcile Form 7525 to Illinois Form ST-1 every month, because the city automated cross-match flags any 1% discrepancy.
- Do file even when zero tax is due, because non-filing triggers a $250 flat penalty even on a zero return.
- Do pay by ACH debit through the portal, because credit card payments add a 2.45% convenience fee.
- Do save the portal confirmation PDF for six years, because it is your only proof of filing in an audit.
- Do verify your MPEA boundary status annually, because subdistrict boundaries can change with new MPEA legislation.
- Do request penalty waivers within 30 days, because the waiver request window closes after 30 days from the notice date.
- Don’t deduct credit card processing fees from gross receipts, because the customer paid the menu price and that is the taxable amount.
- Don’t combine city and MPEA tax on one return, because they go to different agencies.
- Don’t ignore Notice of Tax Determination letters, because the 35-day protest window is strict.
- Don’t pay cash over $10,000 at City Hall, because the cashier rejects it under federal Form 8300 rules.
- Don’t rely on bookkeeper signatures without a power of attorney on file, because unauthorized signatures void the return.
- Don’t round to the nearest dollar, because Form 7525 requires cents and rounding causes reconciliation gaps.
Pros and Cons of Filing on Your Own vs. With Help
- Pro — Cost savings. A pro se filer avoids the $150–$400 monthly bookkeeping fee charged by most Chicago hospitality CPAs.
- Pro — Faster turnaround. Owners who know their POS data file in 15 minutes; CPAs add a 3 to 5 day buffer.
- Pro — Real-time portal access. Filing yourself gives you direct access to the account dashboard and credit balances.
- Pro — Better understanding of the tax base. Owners who file themselves spot exempt sales errors faster.
- Pro — No third-party authorization risk. No power of attorney means no risk of an outside party changing the registration.
- Con — Higher error rate. The 14% error rate cited by the audit division is concentrated among self-filers without accounting backgrounds.
- Con — No audit representation. A CPA or licensed Illinois enrolled agent can represent you in audit; you cannot represent yourself in a hearing without one.
- Con — Time cost. 15 minutes a month sounds cheap, but reconciling POS to ST-1 to Form 7525 can take 2 hours for a busy operator.
- Con — Missed credits and exemptions. Self-filers often miss the resale exemption on bottled beverages sold to other licensed dealers.
- Con — No malpractice insurance backstop. A CPA’s professional liability policy covers errors; self-filers absorb 100% of the consequences.
Filing Channels Compared
| Channel | Key Detail |
|---|---|
| Online portal (Chicago Tax Portal) | 3-day post, ACH debit free, credit card 2.45% fee |
| Mail (333 S. State, Ste 300) | 4–6 week post, certified mail recommended |
| In person (City Hall Room 107A) | Same-day stamp, cash up to $10,000 |
| MPEA Form ST-4 (MyTax Illinois) | State portal only, separate login from city |
FAQs
Do food trucks owe Chicago Restaurant Tax?
Yes. Mobile food vendors licensed to operate in Chicago owe the 0.50% tax on every prepared-food sale made inside city limits, regardless of where the truck is garaged.
Is the MPEA tax filed on Form 7525?
No. The 0.25% MPEA Food and Beverage Tax is filed on Illinois Form ST-4 through MyTax Illinois, not on Chicago Form 7525.
Are tips taxable on Form 7525?
No. Voluntary tips paid directly to staff are not taxable, but mandatory service charges added to the bill are taxable receipts.
What if I forgot to file last month?
Yes, file the missed month immediately on the original Form 7525, calculate the 5%-per-month penalty on Line 8, and pay through the portal to stop further accrual.
Do I write my legal name or DBA on Line 2?
Yes, both — the legal entity name on the first line in all caps and the DBA on the second line, exactly matching your Chicago Business License.
Does the tax apply to grocery stores?
Yes, but only on prepared food, hot food, and made-to-order items; cold packaged groceries remain exempt under Municipal Code §3-30.
Do third-party delivery sales count toward Line 4?
Yes. The full menu price charged to the customer is taxable; the operator cannot net out DoorDash or Uber Eats commissions.
Can I deduct credit card processing fees from gross receipts?
No. The customer paid the menu price, and processing fees are a cost of doing business that does not reduce the tax base.
Do I report 0.00 on Line 7 if I had no sales?
Yes. File a zero return rather than skipping the month, because non-filing triggers a $250 flat penalty even on zero receipts.
Is the bookkeeper allowed to sign Line 12?
No, unless a Form IL-2848 power of attorney is on file with the Department of Finance authorizing that bookkeeper to sign tax returns.
What if Line 4 includes alcohol sales for a tavern?
Yes, alcohol sales go on Line 4 as gross receipts, but if more than 49% of receipts are alcohol the tavern may exclude alcohol on Schedule B.
Do I include my Illinois ST-1 amount anywhere?
No. The ST-1 is filed separately with the state, but the city audit division cross-matches the two returns and expects them to reconcile within 1%.
Can I amend a prior return through the portal?
Yes. Open the prior period on the Chicago Tax Portal, select “Amend Return,” mark the form AMENDED at the top, and pay any additional tax with current penalty and interest.
Are catering deposits taxable when received or when the event occurs?
Yes, catering receipts are taxable in the period the food is delivered, not the period the deposit was collected; report the full price on the event month.
Does sales tax get included in Line 4?
No. Line 4 is the menu price before any state, county, or city sales tax is added; only the menu charge for food and beverage belongs on Line 4.
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