Chicago vs Nashville
Illinois Legal but Limited | Tennessee Legal but Limited
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Chicago, Illinois | Nashville, Tennessee |
|---|---|---|
| Legality Status | Legal but Limited | Legal but Limited |
| Permit Fee | $250 annual registration fee | $313 permit fee |
| Tax Rate | 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County | 6% Short-Term Rental Property Tax + state/local sales tax |
| 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 | $50/day for operating without permit; civil penalties up to $500,000 for repeated violations |
| Verdict | Both cities have comparable STR regulatory environments. | |
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
Nashville, Tennessee
Status Legal but Limited
Permit Fee $313 permit fee
Tax Rate 6% Short-Term Rental Property Tax + state/local sales tax
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $50/day for operating without permit; civil penalties up to $500,000 for repeated violations
Both cities have comparable STR regulatory environments.
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 →Nashville Overview
Owner-occupied permits allowed in all zones. Non-owner-occupied permits frozen — no new applications accepted in most residential zones since 2015. Existing non-owner permits are non-transferable.
Full Nashville guide →Frequently Asked Questions
Is it easier to Airbnb in Chicago or Nashville?
Chicago is classified as "Legal but Limited" while Nashville is "Legal but Limited." Chicago's permit fee is $250 annual registration fee compared to $313 permit fee in Nashville.
Which city has higher STR taxes — Chicago or Nashville?
Chicago charges 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County, while Nashville charges 6% Short-Term Rental Property Tax + state/local sales tax. 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. Nashville: $50/day for operating without permit; civil penalties up to $500,000 for repeated violations.