Chicago vs Minneapolis
Illinois Legal but Limited | Minnesota Legal with Permit
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Chicago, Illinois | Minneapolis, Minnesota |
|---|---|---|
| Legality Status | Legal but Limited | Legal with Permit |
| Permit Fee | $250 annual registration fee | $64 short-term rental registration fee |
| Tax Rate | 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County | 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined) |
| Annual Day Limit | No limit | No limit |
| Renewal Interval | Annual | Annual |
| Platform Remits Taxes | Yes | Yes |
| Max Fine Example | $1,500–$5,000 per offense; each day is a separate offense | Up to $2,000 per violation; license revocation for repeated offenses |
| Verdict | Minneapolis has more favorable STR regulations overall. | |
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
Minneapolis, Minnesota
Status Legal with Permit
Permit Fee $64 short-term rental registration fee
Tax Rate 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine Up to $2,000 per violation; license revocation for repeated offenses
Minneapolis has more favorable STR regulations overall.
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 →Minneapolis Overview
Owners limited to one STR property plus their homesteaded residence; buildings with 20+ units capped at 10% STR units. $300,000 liability insurance and neighbor notification required.
Full Minneapolis guide →Frequently Asked Questions
Is it easier to Airbnb in Chicago or Minneapolis?
Chicago is classified as "Legal but Limited" while Minneapolis is "Legal with Permit." Chicago's permit fee is $250 annual registration fee compared to $64 short-term rental registration fee in Minneapolis.
Which city has higher STR taxes — Chicago or Minneapolis?
Chicago charges 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County, while Minneapolis charges 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). Compare the full breakdown in the table above.
Which city has stricter fines for illegal short-term rentals?
Chicago: $1,500–$5,000 per offense; each day is a separate offense. Minneapolis: Up to $2,000 per violation; license revocation for repeated offenses.