Chicago Short-Term Rental Regulations
| Permit | ✓ Required — Shared Housing Registration ($250) |
| Primary Residence | Not required |
| Annual Day Limit | No limit — 31 days or fewer per stay |
| Tax Rate | 10.5% |
| Max Penalty | $5,000 per day |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Shared Housing Registration
| Fee | Amount |
|---|---|
| Initial cost | $250 |
| Renewal | $250 / 1 year |
This permit type does not require primary residence.
Application Process
Online via Shared Housing Registration Portal; requires government-issued ID; primary residency documents required if the unit is your primary residence; processing time not specified
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Chicago Hotel Accommodation Tax | 4.5% | City of Chicago |
| Shared Housing Surcharge | 6% | City of Chicago |
Combined rate: 10.5% of gross rental income.
Collection: Platform auto-remits when booked through a licensed intermediary; host must self-remit when using own platform
Filing: Monthly (default), quarterly, or annually depending on IDOR notification; filed via Form RHM-1
Rental Limits
Chicago does not impose an annual cap on the number of nights you can rent. Each individual stay must be 31 days or fewer per stay.
Zoning & Restrictions
Check with local government
Penalties for Non-Compliance
Standard: $1,500–$3,000 per day; Egregious: $2,500–$5,000 per day
Platform Requirements
Platforms must obtain a Short-Term Residential Rental Intermediary license, verify host registration numbers before listing, and collect and remit hotel accommodation tax and surcharge on each transaction
Compliance Checklist
Follow these steps to legally operate a short-term rental in Chicago:
- Apply for Shared Housing Registration. Submit application + $250 fee.
- Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
- Display your permit number. Include your permit/license number in all listings and advertisements.
- Collect and remit taxes. 10.5% on all bookings.
- Renew annually. $250 renewal fee.