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Hotel Operators' Occupation Tax


image of a hotel room

Statutory Reference

Electronic Services

Definition

The tax is imposed on the occupation of renting, leasing, or letting rooms to persons for living quarters for periods of less than 30 days consecutive days.

Tax Rate

Use the “Tax Rate Database” to determine the rate of the gross receipts from renting, leasing, or letting rooms for periods of less than 30 consecutive days.

Allowable Deductions

Receipts from permanent guests-those who occupy, or have the right to occupy, a room or rooms for at least 30 consecutive days

Note: Units of local government may impose taxes or fees, which the department does not collect. Contact your units of local government (county, municipal, mass transit, etc.) to determine if you must pay any additional taxes or fees not listed at the link below.

See all Additional Local Taxes & Fees

Form/Filing & Payment Requirements

Form RHM-1, Hotel Operators’ Occupation Tax Return, is filed monthly or annually, based on the taxpayer’s average monthly liability. The department determines how often a return must be filed.