Short-Term Rental Laws in Chicago, IL (2026)
Short-term rentals (31 days or fewer) are legal citywide in Chicago, but every unit must hold a city-approved Shared Housing Registration Number ($250 per year, renewed annually), and hosts with two or more units also need a $500 two-year Shared Housing Unit Operator License. The biggest restriction: in single-family homes and 2-4 unit buildings the unit must be the host's primary residence (max 1 rental per building), one-night stays are banned, and units cannot be in a voter-petitioned Restricted Residential Zone or on the Prohibited Buildings List. Lodging taxes total about 17.5% (10.5% city + 1% Cook County + 6% state hotel tax), mostly collected by the platforms. Always confirm current requirements with the city before operating.
Chicago STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Shared Housing Unit Registration (Shared Housing Registration Number) |
| Permit fee | $250 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Minimum stay | 2 nights |
| Total occupancy taxes | ~17.5% of gross revenue |
| Insurance | The Municipal Code places the main insurance duty on platforms: short-term residential rental intermediaries (e.g., Airbnb) must carry commercial general liability insurance of at least $1,000,000 per occurrence covering bodily injury, personal injury, and property damage. The city's COFA report notes the Shared Housing Ordinance also requires licensees to obtain homeowner's insurance and commercial general liability insurance; no separate proof-of-insurance filing for individual shared-housing registrants was confirmed on current BACP application pages. |
| Enforcement | BACP administers registration and enforcement, publishes a complaint form, and maintains a public database of active registrations on the Chicago Data Portal (updated every 24 hours; 3,901 active registered units as of November 2025). Platforms may only list units with approved registration numbers and must remit taxes per transaction. Since May 2025, operators must include occupancy limits, total price, fees, and charges in advertisements and listings (Sec. 4-13-270). Prohibited acts include rentals under two consecutive nights (and under 10 hours), missing registration numbers on listings, exceeding occupancy limits, and overlapping bookings. The city also maintains a Prohibited Buildings List and City Clerk-administered Restricted Residential Zones. |
| Current rules effective | 2026-01-01 |
What will guests pay in taxes on a Chicago stay?
Itemized occupancy taxes for Chicago, IL — enter your nightly rate to see the real cost breakdown.
Chicago occupancy tax calculator
| Gross rent | $450.00 |
| Chicago Hotel Accommodations Tax (4.5%)· usually collected by platform | $20.25 |
| Chicago Shared Housing Surcharge (4%)· usually collected by platform | $18.00 |
| Chicago Domestic Violence Surcharge (2%)· usually collected by platform | $9.00 |
| Cook County Hotel Accommodations Tax (1%)· usually collected by platform | $4.50 |
| Illinois Hotel Operators' Occupation Tax (6%)· usually collected by platform | $27.00 |
| Total tax (17.5%) | $78.75 |
| Guest pays | $528.75 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Chicago requires Shared Housing Unit Registration (Shared Housing Registration Number) to operate a short-term rental — the fee is $250, renewed annual.
Fee raised from $150 to $250/year effective January 1, 2026 under the 2026 City budget. Hosts approved for more than one registration must also hold a Shared Housing Unit Operator License (SHUOL): $500 for a two-year license (was $250). A Commissioner's Adjustment application (exception request) costs $360. Platforms/intermediaries pay separate license fees ($250-$10,000/year by unit count, plus $60 per unit).
Zoning & location rules
No special zoning district approval is required, but the unit must be a lawfully established dwelling unit with six or fewer sleeping rooms in a residential building. Primary-residence and per-building caps apply by building type: single-family homes and 2-4 unit buildings must be the host's primary residence with max 1 active rental; buildings with 5+ units are capped at the lesser of one-quarter of dwelling units or 6 rentals. Voters in precincts containing RS1/RS2/RS3-zoned property can petition to create Restricted Residential Zones that prohibit new shared housing units and vacation rentals (existing units are grandfathered), and building owners can place their buildings on a Prohibited Buildings List. Units are also ineligible if a lease or HOA rules prohibit short-term rental.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Chicago Hotel Accommodations TaxLicensed intermediaries (Airbnb, Vrbo) collect and remit on the host's behalf; hosts who take direct bookings must create a city tax account and remit themselves. | 4.5% | platform |
| Chicago Shared Housing SurchargeFunds supportive services for housing the homeless. Together with the Domestic Violence Surcharge it forms a 6% 'home share' surcharge on top of the 4.5% hotel tax (10.5% total city tax on gross rental charge). | 4% | platform |
| Chicago Domestic Violence SurchargeFunds housing and supportive services for domestic violence victims. | 2% | platform |
| Cook County Hotel Accommodations TaxAirbnb collects and remits for Chicago listings. | 1% | platform |
| Illinois Hotel Operators' Occupation Tax6% of 94% of gross receipts (effective rate about 5.64%). Since July 1, 2025 (PA 104-0006), short-term rental hosting platforms meeting the 're-renter' definition must collect and remit this state tax; hosts booking directly must register a state Hotel Operators' Occupation Tax account. | 6% | platform |
Enforcement & penalties
BACP administers registration and enforcement, publishes a complaint form, and maintains a public database of active registrations on the Chicago Data Portal (updated every 24 hours; 3,901 active registered units as of November 2025). Platforms may only list units with approved registration numbers and must remit taxes per transaction. Since May 2025, operators must include occupancy limits, total price, fees, and charges in advertisements and listings (Sec. 4-13-270). Prohibited acts include rentals under two consecutive nights (and under 10 hours), missing registration numbers on listings, exceeding occupancy limits, and overlapping bookings. The city also maintains a Prohibited Buildings List and City Clerk-administered Restricted Residential Zones.
Fines for violations of the Shared Housing Ordinance range from $1,500 to $3,000 per offense (per the city's Council Office of Financial Analysis). Under the September 2020 amendments, hosts whose units are used for 'egregious conditions' (e.g., parties, drug trafficking, gang activity, prostitution) face fines of $5,000-$10,000, and registrations/licenses can be suspended or revoked.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Recent rule changes in Chicago
January 1, 2026material
2026 City budget raises shared housing fees
Effective January 1, 2026, the Shared Housing Unit registration fee rose from $150 to $250 per year, the Shared Housing Unit Operator License rose from $250 to $500 for two years, and a Commissioner's Adjustment application costs $360. The prior ($150/$250) fees are documented in the city's November 2025 COFA report.
Official source →July 1, 2025material
Illinois extends state hotel tax to short-term rental platforms (PA 104-0006)
Beginning July 1, 2025, hosting platforms for short-term rentals that meet the definition of 're-renter' are subject to the Illinois Hotel Operators' Occupation Tax (6% of 94% of gross receipts), meaning Airbnb/Vrbo must collect and remit the state tax on Chicago STR stays; out-of-state re-renters meeting $100,000/200-transaction thresholds must register with IDOR.
Official source →May 1, 2025material
Advertising transparency and public database requirements take effect
Per the city's COFA report: 'As of May 2025, short-term rental unit operators are required to include occupancy limits, price, fees, and charges in advertisements, listings, rental agreements, and bookings for future rentals,' and BACP must maintain a publicly accessible database of registered units (Sec. 4-13-270). These stem from ordinance SO2024-0013637 amending Chapters 4-6, 4-13, and 4-14. Exact effective day in May 2025 not confirmed.
Official source →
Frequently asked questions
›Is Airbnb legal in Chicago?
Yes — Airbnb and other short-term rentals are legal in Chicago, IL, but you must obtain a Shared Housing Unit Registration (Shared Housing Registration Number) before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Chicago?
Yes. Chicago requires a Shared Housing Unit Registration (Shared Housing Registration Number) to operate a short-term rental, which costs $250 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Chicago short-term rental permit cost?
The Shared Housing Unit Registration (Shared Housing Registration Number) costs $250 (annual renewal). Fee raised from $150 to $250/year effective January 1, 2026 under the 2026 City budget. Hosts approved for more than one registration must also hold a Shared Housing Unit Operator License (SHUOL): $500 for a two-year license (was $250). A Commissioner's Adjustment application (exception request) costs $360. Platforms/intermediaries pay separate license fees ($250-$10,000/year by unit count, plus $60 per unit).
›Can I Airbnb a non-primary residence in Chicago?
Yes — Chicago does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Chicago?
Hosts in Chicago are subject to: Chicago Hotel Accommodations Tax (4.5%), Chicago Shared Housing Surcharge (4%), Chicago Domestic Violence Surcharge (2%), Cook County Hotel Accommodations Tax (1%), Illinois Hotel Operators' Occupation Tax (6%) — roughly 17.5% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›What happens if I operate a short-term rental illegally in Chicago?
Fines for violations of the Shared Housing Ordinance range from $1,500 to $3,000 per offense (per the city's Council Office of Financial Analysis). Under the September 2020 amendments, hosts whose units are used for 'egregious conditions' (e.g., parties, drug trafficking, gang activity, prostitution) face fines of $5,000-$10,000, and registrations/licenses can be suspended or revoked. BACP administers registration and enforcement, publishes a complaint form, and maintains a public database of active registrations on the Chicago Data Portal (updated every 24 hours; 3,901 active registered units as of November 2025). Platforms may only list units with approved registration numbers and must remit taxes per transaction. Since May 2025, operators must include occupancy limits, total price, fees, and charges in advertisements and listings (Sec. 4-13-270). Prohibited acts include rentals under two consecutive nights (and under 10 hours), missing registration numbers on listings, exceeding occupancy limits, and overlapping bookings. The city also maintains a Prohibited Buildings List and City Clerk-administered Restricted Residential Zones.
Chicago's STR rules changed 3 times recently.
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Related
Nearby covered cities
- Nashville, TNPermit required
- Gatlinburg, TNPermit required
- Atlanta, GAPermit required
- Broken Bow, OKRestricted
- New York, NYPrimary residence only
Sources
- City of Chicago BACP - Shared Housing Registrations and Associated Licensesretrieved July 9, 2026
- City of Chicago BACP - Shared Housing Registration: Common Eligibility Criteriaretrieved July 9, 2026
- City of Chicago BACP - Business License Fee Updates effective January 1, 2026retrieved July 9, 2026
- Council Office of Financial Analysis - Aldermanic Request: Short-Term Rental Taxes and Fees (updated November 2025)retrieved July 9, 2026
- City of Chicago BACP - Shared Housing Unit Operator Licensing Guide (2026)retrieved July 9, 2026
- Illinois Department of Revenue - Bulletin FY 2025-28: Hotel Operators' Occupation Tax Updates for Hosting Platforms for Short-Term Rentalsretrieved July 9, 2026
- Chicago Office of the City Clerk - House Share Guidelines (Restricted Residential Zones)retrieved July 9, 2026
- Airbnb Help Center - Chicago, IL (occupancy tax collection and registration)retrieved July 9, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Chicago and a qualified professional before operating.