Chicago, Illinois

Legal but Limited

Updated February 2026

Disclaimer: General information only — not legal advice. Verify with your local government.

Key Facts

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 annual limit
Renewal Annual
Platform Tax Collection Yes — platforms collect
Max Fine $1,500–$5,000 per offense; each day is a separate offense

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.

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Frequently Asked Questions

Is Airbnb legal in Chicago, Illinois?
Short-term rentals in Chicago are currently classified as "Legal but Limited." 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.
How much is the STR permit in Chicago?
The permit/license fee in Chicago is $250 annual registration fee. Renewal is annual.
What taxes do Airbnb hosts pay in Chicago?
Hosts in Chicago are subject to 10.5% combined city tax (4.5% Hotel Accommodations + 6% Shared Housing Surcharge) + 1% Cook County. Major platforms like Airbnb automatically collect and remit these taxes.
What are the fines for illegal short-term rentals in Chicago?
Penalties in Chicago can include $1,500–$5,000 per offense; each day is a separate offense. Always ensure you have the required permits before listing.

Compare Chicago with Other Cities

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Official Resources

Agency: Dept. of Business Affairs and Consumer Protection — (312) 744-6060 | Visit Official Government Page →

Download Compliance Checklist

Get a printable PDF checklist with all the requirements for Chicago.