Chicago Approves 19% Hotel Tax to Fund Tourism Push
24th March 2026
The Chicago City Council has approved a plan to boost tourism marketing by raising hotel taxes. Under Ordinance 2026-0022544, the total tax rate on hotel rooms will increase from 17.5% to 19% in downtown and nearby areas, according to Fox News.
The higher rate will apply to hotels with more than 100 rooms that choose to participate.
The report says that alongside the tax increase, the council created a Tourism Improvement District (TID) to fund Choose Chicago, the city’s tourism marketing organization. Revenue will support promotional campaigns and help cover bids for major events and conventions.
“How can we bring more tourists to Chicago?”
“I know! Let’s charge them a 19% tax on their hotel rooms!
“That’s brilliant!”