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.
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.
Failure to register, collect, or remit the tax may result in penalties, interest, and revocation of authority to operate.
See how Urbana's taxes & fees rules stack up against other locations.
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