The ordinance increases the maximum fine for anyone 16 or older who throws debris from a car to $1,500 from $200.
The minimum fine will be raised to $200 from $50, and police will have the discretion to impound the vehicle. The new law takes effect in 30 days.
"Some may think [these penalties] overly punitive, but these are choices people are making," Alderman Jason Ervin told the Chicago Tribune.
Alderman Howard Brookings, who sponsored the legislation, said his streets are filled with garbage, which is a deterrent to business investment in neighbors in need of jobs.
The council also adopted a plan to revoke liquor licenses of restaurants that do not ban firearms in an attempt to strengthen the city's gun law.
Gun rights advocates have said they will file a lawsuit, the Tribune said.