Johnson Proposes Corporate Head Tax in Budget
Chicago's mayor is pushing a progressive revenue plan that opposition alders have already signaled they will resist.
Updated on Nov. 10, 2026 in City Hall
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Mayor Brandon Johnson has proposed a city budget that includes a corporate head tax and $11 million for quality-of-life services, including tree trimming. Opposition alders are pushing back against the plan as the city works toward passing a new budget before the end of the year.
Why it matters
Chicago must pass a new budget before the end of the year, and the mayor's proposal sets up a contest over how the city raises revenue and funds services. Johnson cites a non-binding ballot resolution from last week's election as evidence of public support for corporate contributions.
The budget proposal allocates $11 million to quality-of-life services, including tree trimming, and $30 million to housing and homelessness response. Twenty-nine alders have signed a letter rejecting property taxes and a head tax, leaving the proposal's revenue plan unresolved.
The players
Brandon Johnson
Chicago's mayor, who proposed the budget including a corporate head tax and has argued the plan reflects public support.
Samantha Nugent
Alderman representing Chicago's 39th Ward, who has been among the council members weighing in on budget priorities.
The details
Johnson held a campaign-style event with the Department of Streets and Sanitation trimming trees on the city's northwest side to highlight the proposal. Last year a group of alders blocked his budget and passed an alternative, which the mayor allowed to take effect without signing it.
Timeline
2025: Alders rejected a corporate head tax and passed an alternative budget.
Early November 2026: A non-binding ballot resolution on corporate contributions passed in the midterm election.
November 10, 2026: Johnson unveiled the budget proposal at the tree-trimming event.
Before the end of 2026: The city must pass a new budget.
Political Context
Mayor Johnson is reviving a corporate head tax that alders rejected in 2025, when a council bloc blocked his budget and passed an alternative. Opposition alders argue against property taxes and a head tax, and the 2027 municipal elections are already on the horizon.
Chicago residents would see the budget's $11 million for quality-of-life services and $30 million for housing and homelessness response depend on whether council members accept the corporate head tax. Any change to city revenue would shape which services are funded next year.
The takeaway
A budget that cannot win council support tends to fail, so the revenue debate over the corporate head tax will likely determine what Chicago funds next year. Readers should watch the council vote as the deadline approaches.
What happens next
The city must pass a new budget before the end of 2026, a deadline that will determine whether the corporate head tax advances.
Further reading
Follow the latest fights over city spending in Chicago City Hall.
Source note: This article includes information reported by WGN-TV.
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Should Chicago impose a corporate head tax to fund city services?
