The City of Chicago Department of Finance announced on Apr. 17 that a new 1.5% transaction charge will take effect for hotels within the Chicago Tourism Improvement District starting May 1, 2026.
The change affects all hotels with at least 100 rooms in specified zip codes across the city. The measure is intended to support financial stability and ensure continued fiscal health for Chicago, according to the Department of Finance’s official website.
According to the announcement, while hotels are responsible for paying the transaction charge, they may choose to pass it on to customers. If passed along, the fee must be disclosed separately from room rent and other taxes, listed as the “CTID Transaction Charge,” and shown on customer receipts. The fee applies only to gross short-term sleeping room rental revenue and does not apply where charges are exempt from the existing Chicago Hotel Accommodations Tax.
Hotels must remit payments monthly by the fifteenth day following each month; returns are filed annually covering July through June cycles. For example, payments collected in May must be submitted by June 15, with annual filings due by August after each cycle ends. Account holders will automatically be registered for this new transaction charge and must submit payments separately from their regular hotel tax remittances.
The City of Chicago Department of Finance manages financial reporting, debt management, revenue collection and risk management across all neighborhoods according to its official website. The department also oversees services such as utility billing and tax payment options for residents and businesses according to its official website. Oversight is provided by the City Comptroller according to its official website.
Officials say that questions about account access or payment procedures can be directed via email or phone as outlined in city materials.
