Short-Term Rental Regulations — Illinois
Hosts in Chicago must obtain a permit before listing their property on platforms like Airbnb or VRBO. The permit fee is $125, renewable Annual. Chicago restricts short-term rentals to owner-occupied properties only, meaning you must live in the home you are renting out. There is no annual day cap on rentals in Chicago. An occupancy tax of 10.5% applies to all short-term rental income. Airbnb and VRBO collect and remit this tax automatically.
Day Limit Notes
Non-owner-occupied rentals are heavily restricted and generally require a separate commercial license.
⚠ Tax Notes
4.5% City Hotel Accommodation Tax plus 6% Shared Housing Surcharge.
⚠ Prohibited Zones
Precincts that have voted to ban STRs, and buildings on the Prohibited Buildings List.
Do I need a permit to run an Airbnb in Chicago?
Yes. Chicago requires a permit to operate a short-term rental. The permit fee is $125 and must be renewed Annual. You must obtain this permit before listing your property on Airbnb, VRBO, or other platforms.
What is the occupancy tax rate for short-term rentals in Chicago?
Short-term rentals in Chicago are subject to a 10.5% occupancy tax. Airbnb and VRBO automatically collect and remit this tax on behalf of hosts — you do not need to handle it separately. 4.5% City Hotel Accommodation Tax plus 6% Shared Housing Surcharge.
Can I rent out a property I don't live in as an Airbnb in Chicago?
No. Chicago restricts short-term rentals to owner-occupied properties. You must live in the home as your primary residence to list it as a short-term rental. Investment properties or second homes cannot be listed as STRs.
How many days per year can I rent my property in Chicago?
Chicago does not impose an annual day cap on short-term rentals. You can rent your property for as many days as you choose, subject to other local regulations. Non-owner-occupied rentals are heavily restricted and generally require a separate commercial license.
Does Airbnb collect occupancy taxes in Chicago?
Yes. Airbnb and VRBO automatically collect and remit the 10.5% occupancy tax in Chicago on behalf of hosts. You do not need to separately collect or remit this tax — it is handled at the platform level.
Are there any prohibited zones for short-term rentals in Chicago?
Yes. Chicago prohibits short-term rentals in certain areas: Precincts that have voted to ban STRs, and buildings on the Prohibited Buildings List.. Always verify your property's zoning status with the local planning department before listing.
Do I need to register my short-term rental in Chicago?
Yes. Chicago requires short-term rental hosts to register their property with the city. This is separate from any permit requirement and typically involves providing property information and contact details to the local authority.
Official Source
Chicago City Government
Last verified: 2026-03-23 · Always confirm with your local government before listing.