Skip to main content

Automobile Renting Occupation & Use Taxes

Legal References

Electronic Services


The occupation tax is imposed on automobile rental businesses based on their charges for automobile rentals in Illinois for periods of one year or less. The use tax is imposed on persons renting automobiles in Illinois based on the rental price. Rentors collect the use tax from rentees and in turn meet their occupation tax liability by remitting the tax to the Department of Revenue. If the use tax is not paid to the rentor, the person using the automobile in Illinois must pay the tax directly to the department.

Local taxes

Counties, municipalities, certain mass transportation districts, and the Metropolitan Pier and Exposition Authority (MPEA) are allowed to impose automobile renting occupation and use taxes. If imposed, the department collects the taxes for these local governments and returns the collections to them.

Tax Rate

Use the Tax Rate Finder to determine tax rates that vary based on location.

Form/Filing & Payment Requirements

  • Form ART-1, Automobile Renting Occupation and Use Tax Return. |   Instructions
    • Form ART-1-X, Amended Automobile Renting Occupation and Use Tax Return  |   Instructions
    • The ART-1 is due 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 the 20th day of the month following the month for which the return is filed.
    • An annual return is due January 20th of the year following the year for which the return is filed. 
  • Form ART-2, Multiple Site Form  |   Instructions


The following automobile rentals are exempt from tax:

  • Automobiles rented for more than one year
  • Receipts received by automobile dealers from a manufacturer or service contract provider for the use of “loaner” vehicles while the dealer is making a warranty or service contract repair on the person’s vehicle
  • Vehicles rented by exempt organizations who provide a copy of the organization’s active Illinois exemption number issued by the department. The exemption number begins with the letter “E” and is followed by 10 digits (e.g., E 9999-9999-01).


Call us at: 1 800 732-8866 or 1 217 782-3336
Call TDD: 1 800 544-5304

Mail your ART-1 forms to:

PO BOX 19037

Mail your ART-1-X forms to:

PO BOX 19034