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

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Covers
Airbnb/VRBO short-term rentals (Sec. 6.37.030)
License required
before advertising or renting
License fee
set by city's annual fee ordinance
Inspection
required within 120 days of licensing
Unlicensed operation fine
at least $100 per day
Excluded
hotels, motels, bed-and-breakfast inns

Summary

Elgin treats Airbnb and VRBO rentals as licensed rental residential property under Chapter 6.37, not as hotels. Owners must obtain a rental license and pay a fee tied to the number of units before advertising or renting, undergo a pre-license inspection, and complete landlord training; hotels, motels and bed-and-breakfast inns are excluded from this licensing scheme.

Rental residential property means dwellings, dwelling units, roominghouses, and rooming units let or intended to be let for rent or lease, including, but not limited to, properties that are listed and/or let for rent, lease, or occupancy on a short-term basis either independently or through online services (e.g., AirBnB, VRBO, etc.)... Each application for a new license or a renewal of an existing license shall be accompanied by a fee as determined by the number of dwelling units or rooming units established within the rental residential property, in the amount as provided in the most recently enacted ordinance establishing fees for various city services, permits, licenses, use of facilities and other matters.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 7).

Full Breakdown

030). 040A). 050B). 060C, G). 090). 040D).

Violations & Fines

Operating, maintaining, or advertising a short-term rental without a valid license draws a fine of at least $100 per offense, and each day of continued unlicensed operation counts as a separate offense (Section 6.37.130B.2). Charging or collecting rent on an unlicensed or suspended property is a separate violation (Section 6.37.080E). If the city revokes a license, occupants who don't vacate within sixty days face fines starting at $100 per day for as long as the property stays occupied without a valid license (Section 6.37.090J).

Frequently Asked Questions

Do I need a license to rent my Elgin home on Airbnb?
Yes. Elgin's Chapter 6.37 defines short-term rentals booked through services like Airbnb or VRBO as licensed rental residential property, so you must obtain a rental license from the code official before advertising or renting the unit. Operating without one is unlawful, and unlicensed operation can draw a fine of at least $100 per day.
How much does an Elgin short-term rental license cost?
The fee depends on the number of dwelling or rooming units at the property and is set in the city's separately adopted annual fee schedule rather than fixed in the licensing chapter itself. Applicants pay the fee with each new application and again at renewal, and the license runs for one year from the registration date.
Are hotels and traditional bed-and-breakfasts covered by this license?
No. Chapter 6.37 explicitly excludes hotels, motels and bed-and-breakfast inns from its rental-property licensing rules; those uses are instead taxed under the city's separate hotel and motel room rental tax chapter, which imposes an 8 percent occupancy tax rather than a licensing fee.
What happens if I skip the license and keep renting on Airbnb?
The city can fine you at least $100 per offense for operating unlicensed, with each day of continued operation treated as a new offense. The code official can also order occupants to vacate within sixty days and pursue suspension or revocation of any future license application.

Sources & Official References

Other rules in Elgin

Animal Ordinances: Dog Leash LawsSome RestrictionsNoise Ordinances: Barking DogsLight RestrictionsParking Rules: Driveway RulesHeavy RestrictionsParking Rules: Loading ZonesSome RestrictionsAnimal Ordinances: Pet Groomer RulesHeavy RestrictionsAnimal Ordinances: MicrochippingSome Restrictions

All Elgin rules

How Elgin compares: Cities with the Highest Short-Term Rental Taxes·Compare Elgin to another location·View the Illinois short-term rentals overview

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