Chicago vs Sacramento

Illinois Legal but Limited | California 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
Sacramento, California
Status Legal with Permit
Permit Fee $230 initial application; $160 annual renewal; $54 annual Business Operations Tax
Tax Rate 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments
Day Limit 90 days/year
Renewal Annual
Platform Tax Yes
Max Fine Contact city for current details

Sacramento has more favorable STR regulations overall.

Permits & Licensing

Chicago charges $250 annual registration fee for STR licensing, while Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax. Chicago renewal is annual, and Sacramento renewal is annual. Overall, Sacramento 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 Sacramento, hosts pay 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Both cities benefit from automatic platform tax collection through Airbnb and similar services, simplifying compliance for hosts.

Day Limits & Restrictions

Sacramento imposes a 90-night annual limit, while Chicago has no annual cap — a significant advantage for high-volume hosts.

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 Sacramento, violations can result in Contact city for current details. 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 →

Sacramento Overview

Host must reside in the property at least 184 nights/year (primary residence requirement); non-primary-residence rentals capped at 90 days/year. Maximum 6 guests at any time.

Contact: Revenue Division, Finance Department — (916) 808-8500

Full Sacramento guide →

Frequently Asked Questions

Is it easier to Airbnb in Chicago or Sacramento?
Chicago is classified as "Legal but Limited" while Sacramento is "Legal with Permit." Chicago's permit fee is $250 annual registration fee compared to $230 initial application; $160 annual renewal; $54 annual Business Operations Tax in Sacramento. Overall, Sacramento has a more host-friendly regulatory environment.
Which city has higher STR taxes — Chicago or Sacramento?
Chicago charges 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County, while Sacramento charges 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments.
Which city has stricter fines for illegal short-term rentals?
Chicago: $1,500–$5,000 per offense; each day is a separate offense. Sacramento: Contact city for current details. Both cities actively enforce STR regulations, so proper licensing is essential.
Do Chicago and Sacramento have day limits for Airbnb?
Chicago has no annual day limit. Sacramento limits STRs to 90 nights per year.
Which city is better for first-time Airbnb hosts — Chicago or Sacramento?
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. Sacramento charges $230 initial application; $160 annual renewal; $54 annual Business Operations Tax with 12% TOT + 1.15%–3.45% Tourism Marketing/Infrastructure District assessments. Automatic tax collection in Chicago and Sacramento makes compliance easier for beginners.