Short-Term Rental Tax in Illinois (IL)
The state-level tax rate on short-term rentals in Illinois is 12.3% , consisting of 6.3% sales tax and 6.0% lodging tax. Illinois applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Chicago reaches 17.8%. STR operators must register with the state. Illinois charges a 6.25% sales tax and a 6% state hotel occupancy tax on stays of less than 30 days. Cities and counties add their own hotel taxes, with Chicago being among the highest-taxed cities in the nation.
Annual Tax Estimate for Illinois
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Chicago).
| Nightly Rate | Gross Revenue | State Tax (12.3%) | Chicago Tax (17.8%) |
|---|---|---|---|
| $100.00/night | $23,700 | $2,903 | $4,207 |
| $150.00/night | $35,550 | $4,355 | $6,310 |
| $200.00/night | $47,400 | $5,807 | $8,414 |
| $300.00/night | $71,100 | $8,710 | $12,620 |
| $500.00/night | $118,500 | $14,516 | $21,034 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Illinois
Local taxes significantly impact the total STR tax burden in Illinois. The table below shows combined state + local rates for 3 cities, sorted by total rate. The highest combined rate is 17.8% in Chicago.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Chicago | 5.5% | 17.8% | $35.50 | Very High | Cook County 2% + Chicago 3.5% hotel accommodations tax. STR must register. |
| Galena | 4.0% | 16.3% | $32.50 | Very High | Jo Daviess County 2% + Galena 2% hotel tax. Popular tourist town. |
| Springfield | 3.0% | 15.3% | $30.50 | High | Sangamon County 1% + Springfield 2% hotel-motel tax. |
How Illinois Compares to Other States
Below is a comparison of Illinois with five states that have similar state-level STR tax rates. This comparison helps illustrate where Illinois stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Illinois (IL) | 12.3% | 6.3% | 6.0% | Yes | Required |
| Texas (TX) | 12.3% | 6.3% | 6.0% | Yes | Required |
| Rhode Island (RI) | 12.0% | 7.0% | 5.0% | Yes | Required |
| West Virginia (WV) | 12.0% | 6.0% | 6.0% | Yes | Required |
| Massachusetts (MA) | 11.7% | 6.3% | 5.7% | Yes | Required |
| New Jersey (NJ) | 11.6% | 6.6% | 5.0% | Yes | Required |
Frequently Asked Questions About Illinois STR Taxes
What is the short-term rental tax rate in Illinois in 2026?
The state-level tax rate on short-term rentals in Illinois is 12.3%, consisting of 6.3% sales tax and 6.0% lodging tax. Local taxes can bring the total to 17.8% in cities like Chicago. At $200/night with 65% occupancy, the state-level tax alone is approximately $5,807 per year.
Does Airbnb collect STR taxes in Illinois?
Yes. Airbnb, Vrbo collect state hotel occupancy tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Illinois?
Yes. Illinois requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Illinois also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Chicago, Illinois?
The total combined tax rate in Chicago is 17.8%, which includes the 12.3% state rate plus 5.5% in local taxes. Cook County 2% + Chicago 3.5% hotel accommodations tax. STR must register. At $200/night with 65% occupancy, this amounts to approximately $8,414 per year in taxes.
How much will I owe in STR taxes in Illinois?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (12.3%), a property earning $200/night with 65% occupancy would owe approximately $5,807/year in state taxes alone. In Chicago, the total tax at the same rate would be approximately $8,414/year. Use our STR tax calculator for a customized estimate.
Calculate Your Illinois STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Illinois. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.