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Evanston, IL Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
7.5% of gross rent
Applies to
Hotels, motels, B&Bs, vacation rentals
Return due
20 days after month-end
Permanent-resident exemption
30+ consecutive days

Summary

Evanston taxes hotel, motel, bed-and-breakfast, and vacation rental stays at 7.5% of gross rent, collected from guests and remitted monthly to the City Collector.

A tax is hereby levied and imposed upon the use and privilege of renting, leasing, or letting of rooms in a motel, hotel, bed and breakfast establishment, or vacation rental in the City at a rate of seven and one-half percent (7.5%) of the gross rent from such rental, leasing or letting. The ultimate incidence of, and liability for, payment of said tax shall be borne by the user, lessee or tenant of said rooms or vacation rental unit. The tax herein levied shall be in addition to any and all other taxes. It shall be the duty of every owner, manager, facilitator and/or operator of hotel, motel, bed and breakfast establishment, or vacation rental unit accommodations to secure said tax from the user, lessee or tenant of the hotel, motel, bed and breakfast establishment, or vacation rental unit accommodations and issue payment to the City.

(Ord. No. 60-0-01; Ord. No. 8-O-12, (50-O-11(exh. A, § 3-2-4-2)), 1-23-2012; Ord. No. 88-O-13, § 2, 9-23-2013; Ord. No. 160-O-17, § 1, 1-8-2018; Ord. No. 135-O-18, § 1, 11-19-2018; Ord. No. 64-O-21, § 2, 6-28-2021)

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 21).

Full Breakdown

Evanston levies a 7.5% occupancy tax on renting, leasing, or letting rooms in any motel, hotel, bed and breakfast establishment, or vacation rental within the City, per § 3-2-4-2. The tax applies on top of any other taxes and is borne by the guest; owners, operators, and facilitators, including online travel companies, must collect and remit it. Stays by permanent residents of thirty or more consecutive days are exempt under § 3-2-4-7. Vacation rentals are expressly covered by name alongside traditional hotels and motels.

Violations & Fines

Failing to collect or remit the tax triggers enforcement action by the Corporation Counsel and can lead to suspension or revocation of City licenses; violators face fines from $250 to $750 per offense under § 3-2-4-8.

Frequently Asked Questions

Does Evanston's hotel tax apply to Airbnb-style rentals?
Yes, § 3-2-4-2 names vacation rentals alongside hotels, motels, and bed and breakfasts, all taxed at 7.5% of gross rent.
Who is exempt from Evanston's hotel-motel tax?
Guests who stay at least 30 consecutive days qualify as permanent residents and are exempt under § 3-2-4-7.

Sources & Official References

Other rules in Evanston

All Evanston rules

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