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

Peoria's transient occupancy revenue is collected through the City's Municipal Hotel/Motel/Room Rental Tax, set at 8% of the gross rental receipt per rented unit for each 24-hour period or any portion thereof. The tax applies to all short-term rental stays of 29 days or fewer; rentals lasting 30 or more consecutive days to the same occupant are exempt under the standard transient-occupancy definition. The City of Peoria administers both licensing and tax filing through a single HostCompliance Short-Term Rental License & Tax Portal. Operators select a monthly, quarterly, or annual filing frequency and submit returns through the portal, attaching supporting documentation such as platform booking summaries (Airbnb, Vrbo, Booking.com) and any Illinois state tax forms. Peoria has not signed a voluntary collection agreement with Airbnb or Vrbo, which means the City does not receive the local 8% directly from the platform; the operator is responsible for collecting it from each guest (or absorbing it) and remitting it to the City through the portal. Separately, Illinois imposes the Hotel Operators' Occupation Tax under 35 ILCS 145/, currently set at 6% of 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. Airbnb and Vrbo generally collect and remit the Illinois state Hotel Operators' Occupation Tax on behalf of hosts as a marketplace facilitator, but operators must verify coverage and self-remit for any non-marketplace bookings. STR taxes are independent of any sales tax on cleaning fees or amenities.