Chicago, IL Short-Term Rentals: Taxes & Fees (2026)
Key Facts
- Base hotel tax
- 4.5% of gross rental charge
- Homeless services surcharge
- 4% (vacation/shared housing only)
- Domestic violence surcharge
- 2% (vacation/shared housing only)
- Combined STR rate
- 10.5% of rental charge
- Administering agency
- Dept. of Finance
Summary
Chicago taxes short-term rentals at 10.5% total: a 4.5% base hotel tax plus 4% and 2% homeless-services and domestic-violence surcharges.
There is hereby imposed... a tax... upon the rental or leasing of any hotel accommodations in the City of Chicago, at the rate of four and one-half percent of the gross rental or leasing charge. In addition... a surcharge... upon the rental or leasing of any hotel accommodations at any vacation rental or shared housing unit... at the rate of four percent... [and] a surcharge... at any vacation rental or shared housing unit... at the rate of two percent of the gross rental or leasing charge.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-74: Current through Council Journal of June 17, 2026).
Full Breakdown
Chicago's Hotel Accommodations Tax applies to vacation rentals and shared housing units, not just hotels. The base tax is 4.5% of the gross rental charge. On top of that, the city layers a 4% surcharge specifically on vacation rental and shared housing unit stays to fund supportive housing for the homeless, and a 2% surcharge to fund housing and services for domestic violence victims: both surcharges apply only to vacation rentals/shared housing, not traditional hotels. Combined, an Airbnb or VRBO host in Chicago collects 10.5% in city tax on top of the rental charge. The Department of Finance administers it, and up to 8% of surcharge revenue funds enforcement of the shared housing and vacation rental licensing chapters. The tax is borne by the guest but the host/operator must collect and remit it.
Violations & Fines
Operators who fail to collect, report, or remit the tax are liable for the unpaid tax plus penalties and interest under the city's uniform revenue procedures ordinance; the Department of Finance can also pursue license action against unregistered shared housing operators.
Frequently Asked Questions
Does the STR tax rate differ from Chicago's regular hotel tax?
Who actually pays the tax?
Sources & Official References
Other rules in Chicago
How Chicago compares: Cities with the Highest Short-Term Rental Taxes·Compare Chicago to another location·View the Illinois short-term rentals overview
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Taxes & Fees in Nearby Cities
How other cities in Cook County handle taxes & fees.