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. Under the Municipal Code, 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 rental per small building; larger buildings are capped at a quarter of units or six, whichever is fewer. About 2,400 buildings have opted out through the city's Prohibited Buildings List, and some precincts have banned new rentals 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; the case is pending.
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 | Legal dwelling units with six or fewer sleeping rooms rented for 31 days or fewer need a Shared Housing Registration Number, renewed every year through the Shared Housing Registration Portal. Municipal Code 4-5-010 (last amended April 15, 2026) sets the registration fee at $250, but the city's registration pages still show $125, so confirm the amount at approval. Hosts approved for two or more registrations also need a Shared Housing Unit Operator license ($500 under 4-5-010; a secondary source says it runs two years). Vacation rentals are a separate license category [2] [3] [4] [5]Confirming |
| Primary residence for homes and 2–4 unit buildings | Single-family homes and units in two- to four-unit buildings must be the host's primary residence (where the host lives at least 245 days in the calendar year), and only one unit in such a building may be an active rental. Units in buildings of five or more units need not be a primary residence, but no more than one quarter of the units or six units, whichever is fewer, may be shared housing units [6] [7] [8] |
| Prohibited Buildings List and restricted precincts | Units cannot be registered in a building on the city's Prohibited Buildings List (about 2,400 buildings on the city data portal), in a Restricted Residential Zone (precincts where voters petitioned and City Council passed a ban on new rentals; existing registrations continue until they expire or the property changes hands), or at an address on the city's Scofflaw or Problem Landlord lists. Condo, HOA or co-op by-laws and leases that prohibit shared housing also bar registration [9] [4] [10] [8] |
| Fines $2,500–$10,000 per offense | The city's registration guide says violations carry fines of $2,500 to $10,000 per offense; a secondary source adds that each day counts as a separate violation [4] [5] |
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Detailed rules
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Changes
Recent and pending changes
We checked the city tax page, Shared Housing Registration page and guide, eligibility criteria, Municipal Code 4-14 and 4-5-010 (fee schedule amended April 15, 2026), the City Clerk's restricted precincts list (latest entry effective October 9, 2024), the Prohibited Buildings List (updated August 29, 2026), and news on the Airbnb lawsuit. Watch for the city's registration pages to catch up with the $250 fee in the code, and for rulings in the lawsuit.
The city sued Airbnb and Slumber Stay LLC (and its owner) in the Circuit Court of Cook County, alleging unregistered listings, use of a single nontransferable hotel license across many units, and continued renting after nearly 200 citations; it seeks fines, forfeiture of profits and an injunction. Airbnb said it cannot comment on active litigation. As of September 26, 2026 no ruling, settlement or dismissal had been reported.
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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.