Hotel Operators' Occupation Tax
The tax is imposed on the occupation of renting, leasing, or letting rooms to persons for living quarters for periods of less than 30 consecutive days.
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.
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
For more information, please review Publication 106, Allowable Deductions for IDOR-Collected Hotel Taxes.
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.
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).