Chicago hotel tax rises to 19% under new Tourism Improvement District

As of March 19, 2026, the Chicago hotel tax will increase to 19 percent after the City Council unanimously approved creation of a Tourism Improvement District, pushing the combined levy above the current 17.5 percent and making it the highest hotel tax rate in the nation. The council voted Wednesday to apply the boost within the new district as part of a five-year program designed to expand the city’s convention and tourism marketing.

Under the plan, hotels in all or parts of 14 wards — including Downtown, McCormick Place, the Illinois Medical District and Hyde Park — volunteered to add the charge, which applies only to properties with 100 or more rooms that opt in. City officials estimate the increase will generate more than $50 million annually to support marketing, incentives and bid fees, including the roughly $1 million entry costs for major convention contests. Choose Chicago and its CEO argued the city’s marketing budget trails peer destinations, citing comparisons to Las Vegas, Orlando, Los Angeles, San Diego and New York; Mayor Brandon Johnson said the funds will help counter negative narratives and give the city resources to compete for large events. Ald. David Moore, who had opposed the measure in committee over concerns about residents paying on staycations, ultimately backed the council vote.

Also on Wednesday the mayor made several confirmations: Kenya Merritt was named permanent Cultural Affairs and Special Events commissioner, LaKenya White was confirmed to lead the Civilian Office of Police Accountability, and Susan Cappello was approved as executive director of the Commission on Animal Care and Control amid protests from animal welfare groups. The council also authorized COPA to investigate alleged violations of the Welcoming City ordinance and approved a $27 million settlement for the family of Stacy Vaughn-Harrell, who was killed in a 2017 police chase in Englewood; her daughter Kimberlyn Myers sustained serious injuries.