Taxes & Fees: Machesney Park vs Rockford

Does Winnebago County charge a short-term rental license fee?

Unincorporated Winnebago County does not publish a dedicated STR licensing fee, but Chapter 90 Article 8 Table 8.1 lists Vacation Rentals as a Special Use in the R-A district, which means a Special Use Permit application and fee through the Zoning Board of Appeals are required before operating. Vacation rentals are not allowed in the R-R sub-district. Properties inside Rockford or another incorporated municipality follow that city's separate STR rules. Confirm current fees with Planning & Zoning at 815-319-4350.

What lodging taxes apply to a Winnebago County Airbnb?

Stays under 30 consecutive days are taxable lodging. Operators in unincorporated Winnebago County must remit a 2% county Hotel/Motel Sales Tax monthly to the Winnebago County Treasurer using the official worksheet, plus the 6% Illinois Hotel Operators' Occupation Tax to the Illinois Department of Revenue under 35 ILCS 145. Effective January 6, 2026, platforms such as Airbnb and Vrbo collect and remit the state tax on behalf of hosts under IDOR Bulletin FY 2025-28, but the 2% county tax remains the operator's responsibility unless the platform separately contracts to collect it.

What tax do I owe?

6% state plus local municipal tax. Total varies by city. Platforms collect automatically in most areas.

Does Airbnb handle it?

Yes, platforms collect and remit state and most local taxes automatically in Illinois.