Credit card processing and merchant services in Aurora, IL
Aurora, Illinois collects its own taxes on prepared food, drinks and hotel rooms, outside your state sales tax return, and every seller of prepared food or drink registers with the City as a collector.
If you sell prepared food or drinks in Aurora, the City expects you to register as a tax collector within 30 days of opening. Its food and beverage tax page says every retailer selling prepared food or drink has to register, one registration per location. The City also posts a privilege tax ordinance that sets 1.75% of the purchase price on food and alcohol sold by restaurants and liquor establishments. The tax page itself names no rate, so ask the City to confirm the one that applies to you when you sign up.
None of this goes on your Illinois sales tax return. Both the food and beverage tax and the hotel occupancy tax go to the City's Revenue and Collection Division. File on time and you keep a 2.1% discount. File late and you owe a 7.5% penalty plus 1.25% interest for each month it stays unpaid. Hotels add 6% of the room rental rate, which the guest owes.
So a dinner check in Aurora can carry tax that ends up in two places. Put the City's tax on a separate line in your POS terminals, away from sales tax, and the amount you owe the City comes straight out of a sales report.
Groceries changed this year as well. Illinois took its own tax off groceries at the start of 2026, and cities and counties may now charge exactly 1% in its place, so check each Aurora location in IDOR's Tax Rate Finder before you build a grocery category.
On card fees, no Illinois statute limits surcharges, so a Visa credit fee can go to 3% and a Mastercard one to 4%, never past your cost, and debit cards get no fee at all. The Census Bureau put Aurora at 181,505 residents on July 1, 2025, more than Naperville or Joliet. Our free statement review breaks down what each card type costs you, which is worth knowing before you add any fee.
Rules that matter in Aurora, IL
Registering to collect Aurora's food and beverage tax
The City of Aurora requires every retailer engaged in the sale of prepared food or drink to register as a collector of its food and beverage tax. The privilege tax ordinance the City posts (Chapter 44, Article VII) sets 1.75% of the purchase price on food and alcohol sold by restaurants and liquor establishments. The food and beverage tax page names no rate, so ask the City which one applies to you.
Each location registers separately, within 30 days of starting business, and the City collects the tax itself. Returns filed on time earn a 2.1% discount, and late filing brings a 7.5% penalty plus 1.25% interest per month.
Sources: City of Aurora, Illinois, Food and beverage tax; City of Aurora, Illinois, Privilege tax ordinance; City of Aurora, Illinois, Revenue and collection
Aurora's 6% hotel occupancy tax
Aurora's hotel occupancy tax ordinance taxes the use and privilege of renting a hotel room in the city at 6% of the room rental rate, and the guest owes it. When no room charge is made, a flat $10 a night applies instead. The City collects the tax directly, so you report it to Aurora rather than on a state return.
Sources: City of Aurora, Illinois, Hotel occupancy tax ordinance; City of Aurora, Illinois, Revenue and collection
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Common questions
Does an Aurora, IL restaurant have to register for the city food and beverage tax?
Yes. The City says every retailer selling prepared food or drink must register as a collector, and it collects the tax itself rather than through your Illinois sales tax return. Register within 30 days of opening, one registration per location, then give the tax its own line in your POS so the amount you owe is easy to pull.
How much is the food and beverage tax in Aurora, Illinois?
The City's food and beverage tax page doesn't state a rate. The privilege tax ordinance the City posts sets 1.75% of the purchase price on food and alcohol sold by restaurants and liquor establishments, and the tax page doesn't say whether that's the rate it collects, so ask the City to confirm the figure when you register. At 1.75%, a $60 dinner carries $1.05.
How much hotel occupancy tax does Aurora, IL charge?
6% of the room rental rate, under the City's hotel occupancy tax ordinance, and the City collects it itself. A $140 night carries $8.40 of Aurora's tax. List it separately on the guest's bill so it's easy to match against what you send the City.
What happens if I file Aurora's food and beverage tax late?
The City adds a 7.5% penalty and charges 1.25% interest for each month the tax stays unpaid. Filing on time does the opposite and earns a 2.1% discount, so set a reminder a week ahead of the deadline.
Can an Aurora, IL bar add a surcharge for credit cards?
It can, because no Illinois statute limits surcharges. The networks do: a Visa credit surcharge can be 3% at most and a Mastercard one 4%, the fee can't run past what the card costs you, and debit and prepaid cards are excluded. Disclose it at the entrance, at the register and on the receipt. We can set it up through our surcharging program.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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