Illinois Vacation Rental Tax Calculator

Estimate your property tax, lodging tax, federal & state income tax, and depreciation deductions for your Illinois vacation rental property.

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Tax Types

What Taxes Apply to Illinois Short-Term Rentals?

Illinois STR hosts are subject to several types of taxes. Understanding which ones apply — and who collects them — is the first step toward compliance.

Sales Tax

Illinois applies its state sales tax to short-term rental stays — currently at a base rate that contributes to combined lodging rates of 17.4%. Cities may add local sales tax on top.

Occupancy / Transient Lodging Tax

Illinois's lodging/occupancy tax is the primary STR-specific tax. Combined rates reach 17.4% in Chicago and 13% in Springfield. This includes state, county, and city-level components.

Tourism / Convention Center Tax

Some Illinois cities levy additional tourism, convention center, or special district taxes that add 1–3% to your total rate. In Chicago, the combined rate of 17.4% already includes these surcharges.

Federal & State Income Tax

Net rental profit is subject to both federal income tax (10–37% in 2026) and Illinois's state income tax at 4.95%. Reported on Schedule E (Form 1040). Deduct expenses like mortgage interest, repairs, and depreciation.

Property Tax

Illinois's average effective property tax rate is 2.27% — among the highest in the U.S.. Assessed annually on market value. STRs may face higher assessments in some jurisdictions.

Important

Does Airbnb Collect and Remit Taxes in Illinois?

Airbnb has agreements to collect and remit taxes in Illinois — but coverage is not always complete.

Airbnb collects Illinois's state-level lodging tax in most jurisdictions.
In Chicago and Springfield: Airbnb may or may not collect all county/city taxes.
Rural areas: You're often fully responsible for all local tax collection.
Even where Airbnb collects, you may owe additional local levies or special district taxes.

Bottom line: Never assume Airbnb handles all your Illinois tax obligations. Verify with your local tax authority.

Compliance

Do You Need a Tax Permit in Illinois?

In most Illinois jurisdictions, yes. Common permits and registrations required:

State sales tax permit / seller's permit
City or county business license
Short-term rental operating permit
Lodging tax registration certificate

Consequences of non-compliance

5–25% penalties on unpaid taxes in Illinois

Revocation of rental permit

Liens on your property

Tax Overview

Short-Term Rental Taxes in Illinois

Key tax facts every vacation rental host in Illinois should know.

State sales tax: 6.25% (applies to lodging)

State income tax: 4.95% flat rate

Property tax rate: ~2.27% (among highest in US)

Chicago adds extensive city-specific hotel taxes

City Breakdown

Lodging Tax Rates by City in Illinois

Combined lodging/occupancy tax rates for major vacation rental markets in Illinois.

CityCombined Rate

Chicago

6.25% state + 5.25% home rule + 4.5% city hotel + 1% McCormick + 0.4% special

17.4%

Springfield

6.25% state + 4% county + 2.75% city

13%

Galena

6.25% state + 3% county + 1.75% city

11%

Rates are estimates based on 2024-2025 data. Always verify with your local tax authority.

FAQs About Illinois Vacation Rental Taxes

Common questions about short-term rental taxes, permits, and compliance in Illinois.

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