Short-term rental rules · Chicago, Illinois
Short-term rentals in Chicago, explained properly.
Chicago allows short-term rentals through its Shared Housing Ordinance, with annual registration. According to a secondary source, single-family homes and units in two- to four-unit buildings must be the host's primary residence (lived in at least 245 days a year), with only one unit per small building; larger buildings are capped at a quarter of units or six, whichever is smaller. More than 2,400 buildings have opted out through the city's Prohibited Buildings List, and some precincts have banned new registrations by petition. The city charges a 4.5% hotel accommodations tax plus a 6% vacation rental and shared housing surcharge (10.5% total), before county and state taxes. In June 2026 the city sued Airbnb and a high-volume host over illegal listings.
Draft. These rules were compiled from the sources listed below — official where available, with fields that rely on secondary sources marked for review — and have not yet been checked line by line. Confirm with the city before making decisions.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| 10.5% city tax on shared housing | Chicago's Hotel Accommodations Tax is 4.5% of the rental charge, and vacation rentals and shared housing units pay an additional 6% surcharge, for a 10.5% city rate (effective December 1, 2018). Cook County and Illinois hotel taxes are additional[1] |
| Annual shared housing registration | Units with up to six sleeping rooms rented for less than 31 consecutive days register annually through the Shared Housing Registration Portal; a secondary source reports a $250 annual fee, and hosts running multiple units need a Shared Housing Unit Operator license ($500 for two years). A separate Vacation Rental License exists for non-platform bookings[2]Confirming |
| Primary residence for homes and 2–4 unit buildings | A secondary source reports that single-family homes and units in two- to four-unit buildings must be the host's primary residence (at least 245 days a year), with only one unit per small building registered; buildings of five or more units are capped at one quarter of units or six, whichever is smaller[2]Confirming |
| Prohibited Buildings List and restricted precincts | Buildings can opt out through the city's Prohibited Buildings List (2,400+ buildings, published on the city data portal), and some precincts have banned new registrations by petition[3][2]Confirming |
| Fines $2,500–$10,000 per offense | A secondary source reports fines of $2,500 to $10,000 per offense, with each day a separate violation[2]Confirming |
| Last researched | September 25, 2026 |
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Detailed rules
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Watch the city's shared housing registration pages (blocked to automated fetching in this pass), the Prohibited Buildings List, and the Airbnb lawsuit. Registration fees, residency rules and penalties come from a secondary source.
The city sued Airbnb and Slumber Stay LLC, alleging unregistered listings, misuse of a single hotel license across many units, and evasion tactics; it seeks fines and an injunction.
Sources
Every rule above links to one of these
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.