Chicago raises hotel tourism tax to 19% to boost tourism marketing funds

A vote on Ordinance No. 2026-0022544 would raise the tax on hotel rooms within that district to 19% from a 17.5% rate — which includes the city, county and state tax combined, according to Chicago Sun-Times.

The increase will be applied to hotel stays in properties located in the city center and surrounding areas that contain more than 100 rooms.

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The increase will apply to Hotel room rates With 100 rooms or more you agree to subscribe.

The City Council also approved the formation of a Tourism Improvement District (TID) — which will fund Choose Chicago, the city’s official destination marketing organization.

Chicago is raising tourist taxes on downtown hotel bookings to 19% to boost tourism marketing efforts. (Istock)

The revenue will be used for City marketing campaigns and to cover bidding fees for major conferences and events.

Chicago is already targeting the Democratic National Convention, which requires a $1 million bid.

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The Windy City previously hosted the Democratic National Committee in August 2024.

Earlier this month, the Democratic National Committee (DNC) fielded offers from Atlanta, Boston, Chicago, Denver and Philadelphia.

The City Council also approved the formation of a Tourism Improvement District. (Robert Nobbs/UCG/Universal Image Group via Getty Images)

The Democratic National Committee said its advisory board is considering several factors, including a “commitment to choosing a city that shares Democratic values.”

Mayor Brandon Johnson issued a press release after the City Council vote, praising the decision.

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“Chicago is a leading city for tourism, business travelers and conventions Large-scale events” Johnson said.

“My administration will continue our collaboration with Choose Chicago, as we continue to build Chicago’s tourism and hospitality industry while leveraging economic growth and development to continue building safe and affordable communities throughout our city,” he added.

Chicago is already targeting the Democratic National Convention, which requires a $1 million bid. (David Paul Morris/Bloomberg via Getty Images)

This represents a “transformational moment” for the city, Choose Chicago President and CEO Christine Reynolds said in a news release.

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“With the creation of TID, we now have enhanced resources to match the ambition and vitality of our city,” Reynolds said.

She added: “This investment will allow us to amplify our marketing efforts and attract more Conventions and events “Ultimately providing significant benefits to Chicago’s economy and communities.”

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“It sends a message to our competing cities that when it comes to attracting visitors, Chicago means business,” Jay Ciparone, chairman of Choose Chicago, said in a statement.

Reacting on social media to news of the tax increase, one person wrote: “19% tax on a hotel room, making it the highest in the country. Vacations can be taken Expensive, especially for a family. How will this help tourism?

“Chicago Democrats would dream of a breathing tax. It’s not that far-fetched,” another X user wrote.