Chicago Approves 1 Percent Sales Tax Hike

July 1, 2008 10:47 a.m. EST

Chicago, IL (AHN) - Effective Tuesday, Chicago raised its sales tax to 10.25, the highest in the country. Diners at a special taxing district would have to shell out 11.25 percent sales tax.

The Cook County Board approved the 1 percent increase to make up for a budget deficit and raise funds for the county's public health care system.

Behind Chicago as the most heavy sales taxed city are Memphis, Tennessee with a 9.25 percent sales tax levy, New Orleans 9 percent and New York City 8.375 percent.

Outside the share of Cook County, the remaining sales tax income is divided among the state of Illinois which gets 5 percent, the City of Chicago 1 percent and the county receives 0.25 percent.