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August 1 Transit Tax Changes: What Dealers Need to Know

Monday, August 03, 2026 11:40 AM | Anonymous member (Administrator)

The Regional Transportation Authority recently authorized a 0.25% increase in the RTA sales tax, beginning the transition from the RTA to the Northern Illinois Transit Authority passed by the state legislature and signed into law by Governor Pritzker. 

The RTA board’s move, required under the NITA Act, will increase the tax across the six counties (Cook, DuPage, Kane, Lake, McHenry and Will) served by the Chicago Transit Authority, Metra and Pace. The increase, effective Aug. 1, is expected to generate more than $199 million this year and more than $500 million in 2027, its first full year. It applies to all purchases already covered by the RTA sales tax.

What Changes on August 1, 2026?

For Car Dealers:

  • Cook County: RTA sales tax increases from 1.0% to 1.25%
  • Collar Counties: RTA sales tax increases from 0.75% to 1.0%
  • If you buy a vehicle in Cook County or a collar county, you'll pay the higher tax rate starting August 1.
  • If you buy a vehicle outside the RTA region but register it in Cook County or a collar county, you'll still pay the additional 0.25% use tax when registering the vehicle.

What This Means for Buyers

Bottom line: Vehicle purchases and registrations in the Chicago-area RTA region will cost slightly more due to a 0.25% tax increase beginning August 1, 2026.

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