Taxes and Financial Forms
Home Rule Sales Tax
Naperville implemented a 0.75% Home Rule Sales Tax (HRST) that serves as a consistent funding source for the city’s capital projects and debt payments. HRST is charged on general merchandise and food for immediate consumption but does not apply to certain purchases, including auto sales, groceries and healthcare items.
Food and Beverage Tax
The City collects a 1.0% citywide tax and a 0.75% downtown tax on prepared food and beverages, most commonly on restaurant and bar sales. Money collected from these taxes is placed in a Special Events & Community Arts Program grant fund and awarded annually to eligible grant programs.
Hotel and Motel Use Tax
The City collects a Hotel and Motel Use Tax at 5.5% of the room rate.
Local Gas Tax
The City of Naperville collects a Local Gas Tax of $0.04 per gallon. Dollars from this tax are placed in the Road and Bridge Fund to support the City’s street resurfacing and reconstruction program.
Real Estate Transfer Tax
The City issues transfer tax stamps for real estate purchases and exempt stamps for owners making deed changes. There is a charge for purchasing a real estate transfer stamp but no charge for exempt stamps. Both transactions only apply to incorporated properties within Naperville. The transfer tax rate is $1.50 per $500 in sale price.
In Naperville, property taxes primarily fund the City’s long-term obligations, such as public safety and IMRF pensions, and debt service payments. This tax is also the primary funding source for the Naperville Public Library and Naper Settlement operations. Both the property tax rate and the property tax levy are determined as part of the City’s budget process each year.
Submitting Local Tax Documents & Payments
Local businesses that must pay locally imposed taxes (hotel/motel, food and beverage and local gas tax) must submit their local tax document via the Help Center. Payment must be made through the Citizen Self-Service (CSS) portal to both view and pay local tax bills electronically.
Retail Sales Tax
The State of Illinois charges a 7% tax on the retail sale of all goods sold within the City, including automobiles. The City receives 1% of the total 7% tax applied to purchases.
Other State Taxes
The City of Naperville receives a share of certain state taxes which are distributed on a population basis.