Illinois Taxes & Fees Law: Statewide Short-Term Rentals Rules (2026)

Key Facts

State tax rate: 6% of gross receipts
Threshold: Under 30 consecutive days
Statute: 35 ILCS 145
Form: RHM-1 monthly filing

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?

Yes. Stays under 30 consecutive days are subject to the 6% Hotel Operators' Occupation Tax. Airbnb collects and remits this state tax on behalf of most Illinois hosts.

Are local short-term rental taxes additional to the state tax?

Yes. Home-rule municipalities may impose their own hotel or short-term rental taxes on top of the 6% Illinois Hotel Operators' Occupation Tax.

Illinois Hotel Operators Occupation Tax on Short-Term Rentals

Key Facts

Full Breakdown

Violations & Penalties

Frequently Asked Questions

Sources

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