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

Vacation rentals sit in Chapter 9 of Title 5, separate from the hotel-motel tax in Section 3-2-4. Section 5-9-4 governs the whole licensing process: the owner submits a written application (Subsection (A)) and mails notice to every property owner within 250 feet of the site (Subsection (B)); City staff must inspect the dwelling unit before any decision issues (Subsection (C)). If the rental is not the owner's primary residence, the Planning and Development Committee reviews the application against four standards, cumulative neighborhood impact, effect on adjoining property values, compliance with the chapter, and public health/safety, and reports to the City Council, which can approve, approve with conditions, or deny (Subsection (D)); an owner-occupied rental instead gets staff-level review.

Renewal requires City Manager approval and a citation-free record from the prior year (Subsection (E)). Subsection (F), the fee schedule, requires a nonrefundable $250 application fee for every applicant and a $150 annual license fee once issued, billed separately from any state or county tax that could also apply to short-term stays. A license issued under this Chapter runs for one year (Section 5-9-3(B)), and Section 5-9-3(C) exempts an owner from needing a license at all if the unit is rented no more than once per twelve-month period, subject to narrow carve-outs for sale-contingent rentals, displaced residents, and demonstrable hardship.