Waukegan, IL Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 6% of room rent per 24-hour period
- Exemption
- Stays over 30 consecutive days
- Quarterly filing threshold
- Avg. monthly liability under $60
- Late payment penalty
- 1% per month on unpaid tax
- Tourism allocation
- 25% of gross tax revenue
- First-offense fine
- $200.00 to $750.00
Summary
Waukegan levies a 6 percent occupancy tax on hotel, motel and short-term rental rooms rented for less than 30 consecutive days. The renter pays the tax; the owner or host collects and remits it to the local tax administrator.
Hotel or motel means any building or structure, or portion thereof, kept, used, maintained, advertised and held out to the public to be a place where lodging, apartments, suites, or other sleeping accommodations are offered for consideration to guests... For the purposes of this article, hotel or motel includes inns, motels, hotels, lodging houses, or short-term rental unit, or any portions thereof. ... (a)There is hereby levied and imposed a tax of six percent of the rent charged for the privilege and use of renting a hotel or motel room within the city for each 24-hour period or any portion thereof for which a daily room charge is made; provided, however, that the tax shall not be levied and imposed upon any person who rents a hotel or motel room for more than 30 consecutive days or to a person who works and lives in the same hotel or motel.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 113).
Full Breakdown
City Code Article IV of Chapter 20 imposes a 6 percent tax on the rent charged for renting a hotel or motel room within the city for each 24-hour period, under Sec. 20-77(a). The definition of "hotel or motel" in Sec. 20-76 expressly folds in short-term rental units, so an Airbnb-style listing is taxed the same as a hotel room. The tax does not apply to a stay of more than 30 consecutive days or to a person who works and lives in the same hotel or motel.
The rentor bears the ultimate liability, but Sec. 20-77(c) and (d) put the collection duty on the owner, who must state the tax separately on the rent invoice and remit it under procedures the local tax administrator sets. Sec. 20-78 requires the owner to keep daily records of rooms rented and tax receipts collected, open to inspection by the city collector at all times. Sec. 00 or less; unpaid tax draws a 1 percent per month penalty. Sec. 20-81 sends 25 percent of gross tax revenue to tourism, special events, conventions and economic development, with the remainder going to the city treasury. Sec. 20-80 lets the city attorney sue to enforce payment.
Violations & Fines
Sec. 20-82 makes a violation punishable by a fine of $200.00 to $750.00 for a first offense and a flat $750.00 for a second and each later offense within a 180-day period, with each day of continued violation a separate offense. More than three violations in 180 days can also be charged as a misdemeanor with up to six months in the county jail under 65 ILCS 5/1-2-1.1.
Frequently Asked Questions
Does Waukegan's hotel tax apply to Airbnb rentals?
What is the hotel occupancy tax rate in Waukegan?
Is there an exemption for long-term guests?
How often must owners file hotel tax returns?
Sources & Official References
Other rules in Waukegan
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