Chicago vs Minneapolis

Illinois Legal but Limited | Minnesota 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
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.

Permits & Licensing

Chicago charges $250 annual registration fee for STR licensing, while Minneapolis charges $64 short-term rental registration fee. Chicago renewal is annual, and Minneapolis renewal is annual. Overall, Minneapolis 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 Minneapolis, hosts pay 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). 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 Minneapolis, violations can result in Up to $2,000 per violation; license revocation for repeated offenses. 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 →

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.

Contact: Inspections Services Division — (612) 673-3000

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. Overall, Minneapolis has a more host-friendly regulatory environment.
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).
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. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Chicago and Minneapolis have day limits for Airbnb?
Chicago has no annual day limit. Minneapolis has no annual day limit.
Which city is better for first-time Airbnb hosts — Chicago or Minneapolis?
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. Minneapolis charges $64 short-term rental registration fee with 6.875% state sales tax + up to 3% Minneapolis entertainment tax (~10% combined). Automatic tax collection in Chicago and Minneapolis makes compliance easier for beginners.