Berwyn, IL Short-Term Rentals: Taxes & Fees (2026)

Chapter 901 of the Berwyn Code of Ordinances, enacted by the City Council as Ord. 23-27 on 12-12-2023, imposes the short-term rental tax. Section 901.02 levies a tax on the use and privilege of leasing, letting or renting a short-term rental unit in the city at 5% of the gross rental receipts, in addition to any other taxes. Under § 901.01 a short-term rental is a residential dwelling unit, from a whole single-family home or a single room to a unit in a building of four or more units, that is rented out using a hosting platform.

The owner of each unit carries the collection duty. Section 901.03 requires the owner to collect the tax from the guest at the time the price, charge or fee is collected and to pay it over to the City Collector under the Collector's procedures. Owners file a return for each calendar quarter, due on or before the last day of the first month following the quarter, showing tax receipts for each 24-hour period the unit was used by a guest (§ 901.07). Owners must keep a guest register and records of amounts collected and receipts for at least four years after the end of the calendar year (§ 901.06), and the City Collector may enter to inspect them (§ 901.05). Proceeds go to the city's Corporate Fund.

The tax sits on top of the licensing scheme in Chapter 879C. Section 879C.02 requires an annual license for each rental, non-transferable and renewed each year, and § 879C.03 bars issuance or renewal until the premises has been inspected and approved. Under § 879C.04 the annual fee is $350 for a non-owner-occupied rental whose applicant is not a Berwyn resident, $250 for a non-owner-occupied rental whose applicant is a city resident, and $100 for an owner-occupied rental. Section 879C.05 also requires owners to market through a hosting platform and limits rentals to no less than 24 consecutive hours and no more than 182 days.