Illinois Statewide Rule
Illinois Hotel Operators Occupation Tax on Short-Term Rentals
Key Facts
- State tax rate
- 6% of gross receipts
- Threshold
- Under 30 consecutive days
- Statute
- 35 ILCS 145
- Form
- RHM-1 monthly filing
Summary
Illinois imposes a 6% state Hotel Operators' Occupation Tax on short-term rentals of fewer than 30 consecutive days, including platforms like Airbnb and Vrbo, applied uniformly statewide.
Sec. 3. Rate; exemptions. (a) 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, excluding, however, from gross rental receipts, the proceeds of renting, leasing or letting hotel rooms to permanent residents of a hotel and proceeds from the tax imposed under subsection (c) of Section 13 of the Metropolitan Pier and Exposition Authority Act. (b) There shall be imposed an additional tax upon hotel operators at the rate of 1% of 94% of the gross rental receipts received by the hotel operator from engaging in business as a hotel operator, excluding, however, from gross rental receipts, the proceeds of such renting, leasing or letting to permanent residents of that hotel and proceeds from the tax imposed under subsection (c) of Section 13 of the Metropolitan Pier and Exposition Authority Act.
Full Breakdown
Under 35 ILCS 145, Illinois levies a 6% Hotel Operators' Occupation Tax on gross rental receipts for accommodations rented for fewer than 30 consecutive days. Public Act 101-31 expanded the definition to include re-renters of hotel rooms and short-term rental intermediaries such as Airbnb and Vrbo. Hosts or platforms must register with the Illinois Department of Revenue, file Form RHM-1 monthly, and remit collected taxes. This state tax applies in addition to any local hotel or municipal accommodation taxes imposed by home-rule units. The tax is universally applicable across Illinois regardless of municipal short-term rental ordinances.
Violations & Penalties
Failure to register, collect, or remit the tax may result in penalties, interest, and revocation of authority to operate.
Frequently Asked Questions
Do I owe the state hotel tax if I rent a room on Airbnb in Illinois?
Are local short-term rental taxes additional to the state tax?
Sources
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