Chicago vs Palm Springs
Illinois Legal but Limited | California Legal but Limited
Disclaimer: General information only — not legal advice. Verify with your local government.
| Requirement | Chicago, Illinois | Palm Springs, California |
|---|---|---|
| Legality Status | Legal but Limited | Legal but Limited |
| Permit Fee | $250 annual registration fee | $1,072/year Vacation Rental Certificate; $642/year Junior Certificate |
| Tax Rate | 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County | 12.5% combined (11.5% TOT + 1% TBID) |
| 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 | $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension |
| 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
Palm Springs, California
Status Legal but Limited
Permit Fee $1,072/year Vacation Rental Certificate; $642/year Junior Certificate
Tax Rate 12.5% combined (11.5% TOT + 1% TBID)
Day Limit No limit
Renewal Annual
Platform Tax Yes
Max Fine $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension
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 →Palm Springs Overview
Limited to 26 rental contracts per year (28 nights or shorter each). Neighborhood density cap of 20% — multiple neighborhoods already at capacity. One permit per owner; occupancy based on bedroom count. $500,000 liability insurance required.
Full Palm Springs guide →Frequently Asked Questions
Is it easier to Airbnb in Chicago or Palm Springs?
Chicago is classified as "Legal but Limited" while Palm Springs is "Legal but Limited." Chicago's permit fee is $250 annual registration fee compared to $1,072/year Vacation Rental Certificate; $642/year Junior Certificate in Palm Springs.
Which city has higher STR taxes — Chicago or Palm Springs?
Chicago charges 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County, while Palm Springs charges 12.5% combined (11.5% TOT + 1% TBID). 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. Palm Springs: $5,000 for operating without certificate + permanent ineligibility; 3 violations = 2-year suspension.