Illinois Department of Revenue
 
 
Businesses
 
 
 
 
 

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
  • Receipts from foreign diplomats (via federal treaty)
  • Meeting rooms, display rooms, sample rooms, offices, and private dining rooms
  • Local Taxes
  • 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.
  • A monthly return is due on or before the last day of the month following the month for which the return is filed.
  • An annual return is due on or before January 31 of the year following the year for which the return is filed.
  • A taxpayer that had an annual liability of $20,000 or more in the preceding calendar year must remit any tax payment by Electronic Funds Transfer (EFT).

 

 
 
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