RTA excise tax is a 0.3% tax on rental car transactions in certain counties

The Regional Transportation Authority (RTA) excise tax is a small tax added to the cost of renting a car in specific counties. It applies when you rent a vehicle for 30 days or less. The tax rate is 0.3% of the rental price, meaning it adds roughly 30 cents per $100 of rental cost. The money collected goes to fund public transportation, roads, and other transit projects in that region.

Not all counties charge this tax. It exists only in counties that have established a Regional Transportation Authority and voted to impose the tax. The tax is collected by the rental car company at the time you rent, added to your final bill. You do not pay it separately — it appears as a line item on your receipt.

This is different from sales tax, which also applies to car rentals. You pay both the sales tax and the RTA excise tax on top of the base rental rate.

Key Takeaways

  • RTA excise tax is 0.3% of the rental price and applies only in counties with an established Regional Transportation Authority.
  • The tax covers short-term rentals of 30 days or less; longer-term rentals are usually exempt.
  • Rental car companies collect the tax at checkout and send it to the county or regional authority.
  • The tax funds public transportation, road maintenance, and transit infrastructure in that region.

Which counties charge the RTA excise tax

The RTA excise tax exists in a limited number of counties across the United States. The most well-known is Cook County, Illinois (which includes Chicago), where the tax has been in place since 2008. Other counties that have implemented the tax include Cuyahoga County, Ohio (Cleveland area) and a handful of others that established Regional Transportation Authorities and voter approval for the tax.

The presence of the tax depends on two things: whether the county has created a Regional Transportation Authority and whether voters approved a tax to fund it. Counties without an RTA do not charge this tax at all. If you are renting a car in a county you are unfamiliar with, you can ask the rental company whether the RTA excise tax applies before you complete your reservation.

How the tax is calculated and charged

The RTA excise tax is straightforward to calculate: multiply the base rental rate by 0.003 (which is 0.3%). If you rent a car for $100 per day for three days, your subtotal is $300. The RTA excise tax would be $0.90. This amount is added to your bill along with sales tax and any other fees.

The rental car company is responsible for collecting the tax and remitting it to the county or regional authority. You do not have the option to avoid paying it if you rent in a county that charges it. The tax applies to the rental rate itself, not to insurance, fuel charges, or other add-ons you may purchase.

What happens to the money collected

Revenue from the RTA excise tax goes into a dedicated fund managed by the Regional Transportation Authority in that county. The money is used to pay for public transit systems, road repairs, bus and train service, and other transportation infrastructure. In Cook County, for example, the tax helps fund the Chicago Transit Authority (CTA) and Metra commuter rail.

The specific projects and services funded vary by county, depending on what the Regional Transportation Authority prioritizes. The tax is meant to be a dedicated revenue stream for transportation rather than going into the general county budget.

Exemptions and special cases

Rentals longer than 30 days are typically exempt from the RTA excise tax. If you rent a car for 31 days or more, the tax does not apply. This is because the tax is designed to target short-term tourist and business travel, not long-term vehicle use.

Some counties may have additional exemptions for specific types of rentals, such as rentals by government agencies or nonprofit organizations. These exemptions vary by county. If you believe your rental should be exempt, contact the rental company or the county's Regional Transportation Authority directly.

How to learn about the tax applies to your rental

The easiest way to know whether you will pay the RTA excise tax is to check the rental quote before you book. Most rental car company websites and apps show all taxes and fees in the final price breakdown. Look for a line item labeled "RTA excise tax," "regional transportation tax," or similar language.

If you are booking by phone or in person, ask the rental agent directly whether the RTA excise tax applies in that county. They can tell you the exact amount before you commit to the rental. You can also contact the county's Regional Transportation Authority office if you want to confirm the tax rate or learn more about how the money is used.

Frequently Asked Questions

Does the RTA excise tax apply if I rent a car for exactly 30 days?

Yes. The exemption applies to rentals longer than 30 days, meaning 31 days or more. A 30-day rental is still subject to the tax.

Is the RTA excise tax the same as sales tax?

No. They are separate charges. Sales tax is a general tax on goods and services. The RTA excise tax is a specific tax on short-term car rentals that funds transportation. You pay both on top of the base rental rate.

Can I deduct the RTA excise tax on my taxes?

That depends on whether the rental itself is deductible for your situation. If you can deduct the car rental as a business expense, the RTA excise tax is part of that deduction. Consult a tax professional about your specific circumstances.

What if I rent a car in a county without an RTA?

You will not pay the RTA excise tax. Only counties that have established a Regional Transportation Authority and approved the tax charge it. Most counties do not have this tax.