Arlington Heights, IL Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 5% of gross rental receipts
- Filing deadline
- 30th of month after collection
- Permanent resident exemption
- 30+ consecutive days
- Enforcing office
- Village Finance Department
- Late penalty
- 10% plus 1%/month interest
- First-offense fine
- $25 to $750
Summary
Arlington Heights, Illinois taxes hotel room rentals at 5 percent of gross rental receipts under Village Code Section 7-1501, on top of any state hotel tax. The levy applies to every hotel room rented in the Village for each 24-hour period or fraction, but excludes rentals to permanent residents who occupy a room for 30 or more consecutive days.
There is hereby levied and imposed upon the use and privilege of engaging in the business of leasing, renting, making, facilitating or servicing the leasing or renting of a hotel room in the Village of Arlington Heights, a tax of five percent on the gross rental receipts (not including taxes or other non-room rental charges added to the hotel bill) for each such hotel room rented for every 24-hour period, or any fraction thereof, excluding, however, from the gross rental receipts, the proceeds of such renting or leasing or letting to permanent residents of that hotel.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Municipal Code: Supplement 3 Update 2).
Full Breakdown
The Village of Arlington Heights, Illinois levies a 5 percent tax on the gross rental receipts collected for renting, leasing, or facilitating the rental of a hotel room within Village limits, under Section 7-1501 (Article XV, Hotel Tax). The tax is computed on the 24-hour rental period or any fraction of it, and it excludes taxes and other non-room charges added to the bill. Section 7-1502 defines a taxable 'hotel' broadly to include inns, motels, tourist homes or courts, lodging houses, rooming houses, and apartment houses, so short-term rentals operating within those categories fall under the same 5 percent levy.
A 'permanent resident' who occupies a room for at least 30 consecutive days is exempt from the tax under the same Section. Every business or person subject to the tax must file a monthly return with the Village's Finance Department by the 30th day of the month following collection (Section 7-1503); July's collected tax, for example, is due by August 30. Operators may pass the tax through to guests as a separately stated charge, and may combine it in one line with the state Hotel Operators' Occupation Tax (Section 7-1504).
Section 7-1505 requires operators to keep separate books and records showing taxable rents and occupancies; an operator who fails to keep those records becomes liable for the tax on its entire hotel proceeds, not just the taxable portion. All collected revenue is deposited into the Village's General Fund under Section 7-1507.
Violations & Fines
Late payment, underpayment, or nonpayment draws interest at 1 percent per month plus a 10 percent penalty on the tax and interest due, under Section 7-1506. Beyond those charges, a person who violates any Article XV provision faces a fine of $25.00 to $750.00 for a first offense and $50.00 to $750.00 for each subsequent offense within 180 days, with each day of violation a separate offense.
Frequently Asked Questions
Does Arlington Heights' hotel tax apply to short-term rental platforms like Airbnb?
Who is exempt from the hotel tax?
When are hotel tax returns due?
What happens if an operator fails to keep separate tax records?
Sources & Official References
Other rules in Arlington Heights
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