Champaign County, IL Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- State tax
- 6% (35 ILCS 145/3)
- Champaign tax
- 7% hotel-motel privilege tax
- STR coverage
- State tax since July 2025
- Platforms
- Collect since January 2026
Summary
Short-term stays owe Illinois's 6% Hotel Operators' Occupation Tax, which the state extended to short-term rentals effective July 2025. The City of Champaign adds a 7% municipal hotel-motel tax. Platforms began collecting Illinois lodging tax in January 2026.
A tax is imposed upon hotel operators at the rate of 5% of 94% of the gross rental receipts from engaging in business as a hotel operator... There shall be imposed an additional tax upon hotel operators at the rate of 1% of 94% of the gross rental receipts
Full Breakdown
Illinois imposes a 6% Hotel Operators' Occupation Tax on lodging under 30 days, and a 2025 budget law extended it explicitly to short-term rentals starting July 1, 2025. On top of the state tax, the City of Champaign levies a 7% Hotel and Motel Privilege Tax on gross rental receipts, remitted to city finance; Urbana levies its own municipal hotel-motel tax. As of January 6, 2026, marketplaces like Airbnb and Vrbo must collect and remit Illinois lodging taxes; direct-booking hosts register with the Illinois Department of Revenue and the city.
Violations & Fines
Failure to collect or remit lodging taxes brings back taxes, penalties, and interest from the Illinois Department of Revenue, plus city penalties on the local hotel-motel tax.
Frequently Asked Questions
What tax do I owe on a Champaign short-term rental?
Does Airbnb handle Illinois lodging tax?
Sources & Official References
Other rules in Champaign County
How Champaign County compares: Cities with the Highest Short-Term Rental Taxes·Compare Champaign County to another location·View the Illinois short-term rentals overview
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