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Automobile Renting Occupation & Use Taxes

Statutory Reference

Electronic Services

Definition

The occupation tax is imposed on automobile rental businesses based on their charges for automobile rentals in Illinois for periods of one year or less. The use tax is imposed on persons renting automobiles in Illinois based on the rental price. Rentors collect the use tax from rentees and in turn meet their occupation tax liability by remitting the tax to the Department of Revenue. If the use tax is not paid to the rentor, the person using the automobile in Illinois must pay the tax directly to the department.

Local taxes

Counties, municipalities, certain mass transportation districts, and the Metropolitan Pier and Exposition Authority (MPEA) are allowed to impose automobile renting occupation and use taxes. If imposed, the department collects the taxes for these local governments and returns the collections to them.

See all Local Automobile Renting Occupation & Use Taxes

Tax Rate

Use the Tax Rate Finder to determine tax rates that vary based on location.

Form/Filing & Payment Requirements

Exemptions

The following automobile rentals are exempt from tax:

Questions?

Call us at: 1 800 732-8866 or 1 217 782-3336
Call TDD: 1 800 544-5304

Mail your ART-1 forms to:

ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19037
SPRINGFIELD IL 62794-9037

Mail your ART-1-X forms to:

ILLINOIS DEPARTMENT OF REVENUE
PO BOX 19034
SPRINGFIELD IL 62794-9034