Chicago, IL Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Base hotel tax rate
- 4.5% of gross rental charge
- Homeless services surcharge (STR)
- 4% on vacation rentals/shared housing
- Domestic violence surcharge (STR)
- 2% on vacation rentals/shared housing
- Total STR tax rate
- 10.5% combined
- Administering agency
- City of Chicago Department of Finance
Summary
Chicago taxes hotel and short-term rental stays at 4.5%, plus up to 6% more in surcharges for vacation rentals and shared housing.
There is hereby imposed ... a tax ... upon the rental or leasing of any hotel accommodations in the City of Chicago, at the rate of four and one-half percent of the gross rental or leasing charge. ... a surcharge ... upon the rental or leasing of any hotel accommodations at any vacation rental or shared housing unit ... at the rate of four percent... [and] two percent of the gross rental or leasing charge.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-74: Current through Council Journal of June 17, 2026).
Full Breakdown
The Chicago Hotel Accommodations Tax applies a base rate of 4.5% on the gross rental or leasing charge for any hotel accommodations in the city. Vacation rentals and shared housing units (Airbnb-style short-term rentals) carry two additional surcharges on top of the base rate: 4% funding supportive housing for homeless families and individuals, and 2% funding services for domestic violence victims, bringing the total city tax on STR stays to 10.5%. The tax is collected from the tenant by the hotel or short-term rental operator and remitted to the city Department of Finance. "Hotel accommodations" is defined broadly to include inns, motels, hotels, apartment hotels, lodging houses, bed-and-breakfasts, vacation rentals, shared housing units, and dormitories. A stay used as the lessee's actual domicile and permanent residence is exempt from the tax.
Violations & Fines
Operators who fail to collect, file returns for, or remit the tax are subject to the city's uniform revenue procedures ordinance, which authorizes penalties, interest and revocation of the business license needed to operate.
Frequently Asked Questions
Does Chicago's hotel tax apply to Airbnb rentals?
Is the STR tax rate higher than a regular hotel stay?
Sources & Official References
Other rules in Chicago
Compare Chicago to another location·View the Illinois hotels & lodging overview
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Transient Occupancy Tax in Nearby Cities
How other cities in Cook County handle transient occupancy tax.