Chicago STR Rules
IL · Short-Term Rental Permit, Taxes & Requirements
Chicago requires all STR operators to obtain a city license. The type of license depends on the building (owner-occupied vs. investor-owned, size). No night cap, but protected zones restrict density. High effective tax rate.
Permit Requirements
Key Rules for Chicago STR Hosts
- ✓All STRs require a license from BACP — $125/year
- ✓Shared Housing Unit License for units in owner-occupied 2-6 unit buildings
- ✓Vacation Rental License for all other STRs
- ✓No annual night cap citywide (some zones have density restrictions)
- ✓Protected Residential Areas (PRAs) may restrict STR density
- ✓Buildings must have written owner consent for tenant-hosted STRs
- ✓City hotel accommodation taxes must be collected and remitted
How to Get Started in Chicago
- 1Determine your license type (Shared Housing vs. Vacation Rental)
- 2Apply at chicago.gov/bacp
- 3Pay $125 annual license fee
- 4Pass any required inspections
- 5Register for Chicago Hotel Accommodation Tax collection
- 6Post license number on your listing
Tax Breakdown
Estimated effective rate: ~17.4%
- •Chicago Home Share Tax: 4%
- •Chicago Hotel Accommodation Tax: 4.5%
- •Chicago Home Rental Tax: 4%
- •IL State Use Tax: 6%
- •Chicago Personal Property Lease Tax: 9%
- •Total effective rate: ~17.4%
Note: Airbnb and VRBO typically collect and remit state and city taxes on behalf of hosts in these markets. Verify your platform's tax collection policy.
Enforcement Notes
Chicago BACP (Business Affairs and Consumer Protection) issues licenses and enforces. Buildings with 4+ units require separate Vacation Rental License; owner-occupied buildings with fewer units qualify for Shared Housing license. Stricter rules apply in protected residential areas.
Also check the IL state guide for state-level tax registration, HOA rules, and preemption status.
Self-manage your Chicago STR
The right tools make it easy to manage without a property manager.