Starting May 1, 2026, Chicago’s Tourism Improvement District (TID) will be in effect. This website is intended to help the Chicago hotel community prepare to implement the TID. Choose Chicago will continue updating this page with more information as the TID is implemented.
The TID provides a stable funding source to ensure Chicago remains a strong competitor in the convention and global tourism marketplace. The funds will support Choose Chicago, the city’s official destination marketing organization (DMO), in its efforts to attract tourism and citywide events, laying the foundation for billions of dollars in economic activity and thousands of new jobs.
If you need additional information or require further assistance, please contact Jimmy Mundo, Director – Community Affairs, Choose Chicago, jmundo@choosechicago.com or Michael Jacobson, President and CEO, Illinois Hotel and Lodging Association, MJacobson@illinoishotels.org.
District Overview
The Tourism Improvement District affects hotels with 100 or more rooms within the TID boundaries, which includes zip codes: 60601, 60602, 60603, 60604, 60605, 60606, 60607, 60609,60610, 60611, 60612, 60615, 60616, 60653, 60654, and 60661.
The boundaries approximately include portions of the Central Business District, South Loop, Illinois Medical District, Hyde Park, and the area surrounding McCormick Place.
Operational Details
We strongly recommend aligning with your internal finance and tax advisors as needed. Linked here and in the resource section is a deck with additional information on operational details. Below are some key points regarding billing and operations:
- Hotels must begin collecting the 1.5% TID surcharge on all short-term stays (under 30 days) beginning May 1, 2026. Hotels must pay the fee, but the cost may be passed along to customers. If passed along to customers, the surcharge must be disclosed on receipts as “CTID Transaction Charge.”
- TID fees must be remitted to the City of Chicago Department of Finance by the 15 of each month, which will in turn disburse the funds to Choose Chicago. Department of Finance accounts with hotels located within the TID boundaries will be automatically registered for the transaction charge (form 7520T) on May 1.
- In addition to base sleeping room rental revenue, the 1.5% fee applies to some other charges, such as resort or destination fees and early check-in or late checkout fees. The TID fee also has some limited exemptions, such as for long-term stays (longer than 30 consecutive days) or complementary stays.
- The TID fee is not taxable. For example, a $1,000 receipt would collect 1.5% ($15) as a CTID Transaction Charge and separately charge 4.5% ($45) for the Chicago Hotel Accommodations Tax.
Additional information can be found in the resource section below.
District Governance
There will be a governing committee of 9-11 hotel general managers whose properties are within the TID boundaries. Board members have not been appointed yet. The terms of the TID require that the board represents properties that are diverse in size, geography, and brand.
