Austin vs Chicago
Texas Legal but Limited | Illinois Legal but Limited
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Austin, Texas | Chicago, Illinois |
|---|---|---|
| Legality Status | Legal but Limited | Legal but Limited |
| Permit Fee | $450/year (Type 2); $50/year (Type 1 homestead) | $250 annual registration fee |
| Tax Rate | 15% Hotel Occupancy Tax (9% city + 6% state) | 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | No — host must remit | Yes |
| Max Fine Example | $500–$2,000/violation; license revocation possible | $1,500–$5,000 per offense; each day is a separate offense |
| Verdict | Both cities have comparable STR regulatory environments. | |
Austin, Texas
Status Legal but Limited
Permit Fee $450/year (Type 2); $50/year (Type 1 homestead)
Tax Rate 15% Hotel Occupancy Tax (9% city + 6% state)
Day Limit No limit
Renewal Annual
Platform Tax No
Max Fine $500–$2,000/violation; license revocation possible
Chicago, Illinois
Status Legal but Limited
Permit Fee $250 annual registration fee
Tax Rate 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $1,500–$5,000 per offense; each day is a separate offense
Both cities have comparable STR regulatory environments.
Austin Overview
Type 1 (owner-occupied) is allowed citywide. Type 2 (non-owner-occupied) licenses are no longer issued in residential areas — existing Type 2 licenses expire April 2027.
Full Austin guide →Chicago Overview
Must be host's primary residence; buildings with 5+ units limited to no more than 6 STR units; Restricted Residential Zones and Prohibited Buildings List apply. $1M commercial general liability insurance required.
Full Chicago guide →Frequently Asked Questions
Is it easier to Airbnb in Austin or Chicago?
Austin is classified as "Legal but Limited" while Chicago is "Legal but Limited." Austin's permit fee is $450/year (Type 2); $50/year (Type 1 homestead) compared to $250 annual registration fee in Chicago.
Which city has higher STR taxes — Austin or Chicago?
Austin charges 15% Hotel Occupancy Tax (9% city + 6% state), while Chicago charges 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County. Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Austin: $500–$2,000/violation; license revocation possible. Chicago: $1,500–$5,000 per offense; each day is a separate offense.