Peoria, IL Short-Term Rentals: Taxes & Fees (2026)

Section 27-146 defines a short-term rental as all or part of a dwelling or dwelling unit, as that term is used in the Unified Development Code, rented for compensation to transient guests for less than 30 consecutive days. 1) apply to STR rentals exactly as they apply to hotel and motel rooms, for a combined 8 percent, again capped at the first 30 consecutive days of a stay. 00, effective the same January 1, 2021 date, running the calendar year; units that paid the separate non-owner-occupied property fee in the same year have that license fee waived.

00 registration fee under Section 27-149(d), with those 2020 licenses expiring December 31, 2020. Section 27-149(e) gives homeowner and neighborhood associations registered with the Peoria Police Department's Neighborhood Association Directory a formal objection process: on receiving an STR license application for an address in its area, the association has ten days to produce a recorded restrictive covenant that expressly prohibits short-term rentals, and if it does, the city cannot issue the license; a covenant recorded after the application is filed does not count. An STR that was legally operating before such a covenant was recorded can keep renewing as a non-conforming use each year, but loses that protection if it fails to register by January 1 of any year. 1), STR owners file their tax return annually with the license application, rather than monthly like hotels and motels.