Chicago residents are already paying more to stream movies, listen to music and play online games, offering a glimpse at a tax idea that Democratic lawmakers have already considered expanding statewide.
Since January 2025, Chicago has imposed a 10.25% amusement tax on electronically delivered entertainment, including video streaming services and online gaming. The city previously taxed both digital and in-person entertainment at 9%, but raised the rate on digital entertainment while leaving the in-person rate unchanged early last year.
While amusement taxes are currently imposed at the local level by home-rule municipalities, Democratic lawmakers have previously considered taking the tax statewide as part of previous negotiations over funding Chicago-area public transit.
In previous legislation, Democrats proposed a 7% statewide amusement tax on a broad range of entertainment, including streaming services, live shows, concerts and sporting events.
The proposal would have meant that Illinoisans across the state could have been forced to pay another state tax to watch a streaming service at home, attend a concert or take their family to a sporting event.
That tax was ultimately stripped from the final transit package, but the fact that Democrats considered the proposal at all should concern Illinois taxpayers. It just shows they are willing to continue reaching into taxpayers’ pockets to find ways to pay for even more government spending.
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