Chicago vs Denver

Illinois Legal but Limited | Colorado Legal with Permit

Disclaimer: General information only — not legal advice. Verify with your local government.

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
Denver, Colorado
Status Legal with Permit
Permit Fee $100 license fee
Tax Rate 10.75% Lodger's Tax (combined city/county/state)
Day Limit No limit
Renewal Every 2 years
Platform Tax Yes
Max Fine $999/day for unlicensed operation

Denver has more favorable STR regulations overall.

Permits & Licensing

Chicago charges $250 annual registration fee for STR licensing, while Denver charges $100 license fee. Chicago renewal is annual, and Denver renewal is every 2 years. Overall, Denver has a more permissive regulatory environment (Legal with Permit) compared to Chicago (Legal but Limited).

Tax Obligations

In Chicago, hosts pay 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County. In Denver, hosts pay 10.75% Lodger's Tax (combined city/county/state). Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Neither city imposes an annual day limit on short-term rentals, giving hosts year-round flexibility.

Fines & Enforcement

Hosts operating without a permit in Chicago face penalties including $1,500–$5,000 per offense; each day is a separate offense. In Denver, violations can result in $999/day for unlicensed operation. Both cities actively enforce their STR regulations, so securing proper licensing before listing is essential in either market.

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.

Contact: Dept. of Business Affairs and Consumer Protection — (312) 744-6060

Full Chicago guide →

Denver Overview

Only primary residences may be used as STRs. Hosts must obtain a Short-Term Rental license. No cap on rental days. Accessory dwelling units on the same lot are also eligible.

Contact: Denver Excise & Licenses — (720) 913-1311

Full Denver guide →

Frequently Asked Questions

Is it easier to Airbnb in Chicago or Denver?
Chicago is classified as "Legal but Limited" while Denver is "Legal with Permit." Chicago's permit fee is $250 annual registration fee compared to $100 license fee in Denver. Overall, Denver has a more host-friendly regulatory environment.
Which city has higher STR taxes — Chicago or Denver?
Chicago charges 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County, while Denver charges 10.75% Lodger's Tax (combined city/county/state).
Which city has stricter fines for illegal short-term rentals?
Chicago: $1,500–$5,000 per offense; each day is a separate offense. Denver: $999/day for unlicensed operation. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Chicago and Denver have day limits for Airbnb?
Chicago has no annual day limit. Denver has no annual day limit.
Which city is better for first-time Airbnb hosts — Chicago or Denver?
For new hosts, consider the total cost of entry: Chicago charges $250 annual registration fee for permits with 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County in taxes. Denver charges $100 license fee with 10.75% Lodger's Tax (combined city/county/state). Automatic tax collection in Chicago and Denver makes compliance easier for beginners.