Chicago’s Bold Tax Moves: Are New Hotel and Short-Term Rental Taxes the End of Affordable Travel in the U.S.? – Travel and Tour World

As of July 1, 2025, Illinois law will extend the Hotel Operators’ Occupation Tax, previously applied only to traditional hotels, to all short-term rental properties. This change is expected to impact short-term rental hosts significantly, as they will now be required to remit a 6 perfect tax on 94 percent of their gross income.

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