Chicago Mayor Rules Out Property Tax Hike

Soon after his chief financial officer floated a tax hike as “likely,” in order to close the city’s projected $1 billion budget gap, Chicago Mayor Brandon Johnson ruled it out entirely.

“I will not be proposing a property tax increase in my budget,” Johnson said at a news conference Thursday. He is instead pledging to find new forms of “progressive revenue,” Crain’s reported.

The statement contradicts remarks from CFO Jill Jaworski earlier this week, who on Tuesday told Bloomberg that property taxes would probably be part of the city’s 2026 budget solution, a stance that aligned with other recent warnings from aldermen and budget analysts. Alderman Nicole Lee told constituents earlier this month to expect “very, very difficult” negotiations this fall, with a levy all but guaranteed.

Johnson has been under pressure from both sides of the aisle. His progressive base wants him to revive long-promised revenue ideas like a corporate head tax, while moderates and business leaders argue that could drive out employers.

A head tax, targeting companies like Amazon with a per-employee fee, has little council support and would be difficult to structure without harming mid-sized firms.

Last year, Johnson included a $300 million property tax hike in his first budget draft, only to have the City Council unanimously vote it down. That defeat effectively forced him into austerity mode; most of his ambitious tax ideas have since stalled or been rejected at the ballot box.

This week’s statement may be aimed at regaining control of the messaging ahead of budget season. Johnson didn’t offer specifics but said he’s relying on aldermen to “stand alongside” him in passing the next round of revenue proposals.

Without a property tax hike, it’s unclear what revenue options remain.

A working group and Ernst & Young consultants are reviewing city spending for cost savings, including potential efficiencies in procurement, benefits, fines and fees. But the math isn’t promising. Revenue has underwhelmed, emergency reserves are nearly depleted and a new state pension law added $7 billion to the city’s tab.

— Judah Duke