Chicago Raises Hotel Tax to Fund Tourism Push

Critics argue the move will hurt working-class tourists, not help them.

Mar. 21, 2026 at 2:08pm

Got story updates? Submit your updates here. ›

The city of Chicago has passed an ordinance to raise the hotel tax within the city from 17.5% to 19%, with the additional revenue going to the organization Choose Chicago to fund tourism marketing campaigns. The top target on Choose Chicago's agenda is attracting the 2028 Democratic National Convention to the city.

Why it matters

The move has drawn criticism from those who argue that raising hotel rates will make Chicago less accessible for working-class families and tourists, while benefiting the political and business elite who are the focus of Choose Chicago's efforts.

The details

Ordinance 2026-0022544 will increase the hotel tax in Chicago to 19% from the previous rate of 17.5%. The additional revenue will go to Choose Chicago, a city organization focused on tourism promotion, with the goal of attracting major events like the 2028 Democratic National Convention.

  • The new 19% hotel tax rate went into effect on March 21, 2026.

The players

Choose Chicago

A city organization focused on tourism promotion and marketing, which will receive the additional hotel tax revenue.

Got photos? Submit your photos here. ›

What they’re saying

“Only a leftist Democrat could possibly think that making it more expensive to visit Chicago will increase tourism. Maybe they should throw in a complimentary mugging to sweeten the deal.”

— David Marcus, Columnist

What’s next

The city will continue its efforts to attract the 2028 Democratic National Convention, using the additional hotel tax revenue to fund its marketing and promotional campaigns.

The takeaway

This move highlights the ongoing tension between efforts to boost tourism and the impact on working-class families and travelers, as the city prioritizes attracting high-profile events and conventions over making Chicago accessible to a broader range of visitors.