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

Peoria's transient occupancy tax structure layers a municipal tax on top of the state Hotel Operators' Occupation Tax. The City of Peoria Municipal Hotel/Motel/Room Rental Tax is set at 8% of the gross rental receipt per rented unit for each 24-hour period or any portion thereof. The tax applies to every hotel, motel, bed-and-breakfast, inn, lodging house, vacation rental, and short-term rental operating within Peoria city limits, and covers all stays of fewer than 30 consecutive days to the same occupant. The City collects this tax through the Finance Department; STR operators file through the HostCompliance Short-Term Rental License & Tax Portal, while traditional hotels and motels file directly with the Finance Department on a monthly basis. Illinois imposes the Hotel Operators' Occupation Tax under 35 ILCS 145/ at 6% on 94% of gross rental receipts (effective rate approximately 5.64%), administered by the Illinois Department of Revenue under registration form REG-1 and return form RHM-1. The state tax funds tourism promotion and general state revenue. Together, a typical Peoria hotel stay in 2026 carries an effective state-plus-city hotel tax burden of roughly 13.64% of the room rate, before any sales tax on room amenities, county-level surcharges where applicable, or platform service fees. Marketplace facilitators (Airbnb, Vrbo, Expedia, Booking.com) generally collect the Illinois Hotel Operators' Occupation Tax on platform bookings, but Peoria has not signed a voluntary collection agreement for its 8% local tax, so the operator must collect and remit the local component directly. The tax does not apply to permanent residents staying 30 or more consecutive days, and does not apply to government-rate stays where exempted under federal or state law.