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

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

Key Facts

Owner-occupied license fee
$100.00 per year (§ 8-40-4(C))
Resident non-owner-occupied fee
$250.00 per year (§ 8-40-4(B))
Hotel/motel occupancy tax
4% of gross rental charge (§ 23A-4-2(A))
Housing Trust Fund surcharge
Additional 3.5% of gross rental charge (§ 23A-4-2(B))
Who collects the tax
Owner, operator or hosting platform, jointly and severally (§ 23A-4-3)

Summary

Short-term rental owners in Oak Park pay an annual Village license fee, from $100.00 for an owner-occupied unit up to the bed-and-breakfast rate for non-resident, non-owner-occupied hosts, plus a 4% hotel/motel and transient occupancy tax and a 3.5% Housing Trust Fund surcharge on every stay of 30 days or less.

8-40-4: LICENSE FEE: ... The license fees to be paid annually to the Village pursuant to this article shall be as follows: ... B. A non-owner-occupied short-term rental applicant who is a Village resident shall pay a fee of two hundred and fifty dollars ($250.00). C. An owner-occupied short-term rental applicant shall pay an annual license fee of one hundred dollars ($100.00). ... 23A-4-2: TAX IMPOSED: ... A. A tax is hereby levied and imposed upon the use and privilege of renting, leasing or letting of a hotel/motel room or transient occupancy rental unit in the Village at a rate of four percent (4%) of the gross rental or leasing charge. ... B. In addition to the tax imposed under subsection A of this section, a surcharge is imposed and shall immediately accrue and be collected upon the rental or lease of any transient occupancy rental unit in the Village at the rate of three and one-half percent (3.5%) of the gross rental or leasing charge.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-9: Code current through: Ord. 26-159, passed - -2026).

Full Breakdown

00. That license fee is separate from the Village's hotel/motel and transient occupancy rental unit tax in Chapter 23A, Article 4. Section 23A-4-2 levies a 4% tax on the gross rental or leasing charge for renting a hotel/motel room or a transient occupancy rental unit, defined at section 23A-4-1 as a dwelling or habitable unit rented for 30 days or less. 5% surcharge on the same gross rental or leasing charge to fund the Village's Housing Trust Fund established under section 12-7-3. Under section 23A-4-3, the owner, operator or facilitator, which includes a hosting platform, bears joint and several responsibility for collecting both the tax and the surcharge from the renter and remitting them to the Village Finance Director; the ultimate legal and economic burden of the tax falls on the renter.

Violations & Fines

Section 23A-3-11's general Chapter 23A penalty applies to tax violations: failing to file a return, filing a fraudulent one, or otherwise willfully violating the tax article is a misdemeanor fined between $100.00 and $500.00, plus civil liability for the unpaid tax with interest and costs. Separately, section 8-40-7 fines short-term rental licensing violations $200.00 to $750.00 depending on the number of offenses.

Frequently Asked Questions

How much is Oak Park's short-term rental license fee?
It depends on occupancy and residency: section 8-40-4 sets it at $100.00 a year for an owner-occupied rental, $250.00 for a non-owner-occupied rental owned by a Village resident, and the bed-and-breakfast rate under section 8-2-1 for a non-owner-occupied rental owned by a non-resident.
Does Oak Park charge an occupancy tax on short-term rentals?
Yes. Section 23A-4-2 imposes a 4% tax on the gross rental or leasing charge for any transient occupancy rental unit rented 30 days or less, plus a separate 3.5% surcharge under the same section that funds the Village's Housing Trust Fund.
Who is responsible for collecting the hotel/motel tax from guests?
Section 23A-4-3 makes the owner, operator and facilitator, which includes a booking platform, jointly and severally responsible for collecting the tax and surcharge from the renter and remitting it to the Village Finance Director, though the ultimate cost is borne by the renter.
What happens if a short-term rental owner doesn't pay the Village tax?
Section 23A-3-11 makes failing to file a return or filing a fraudulent one a misdemeanor punishable by a fine of $100.00 to $500.00, in addition to civil liability for the unpaid tax, interest and costs.

Sources & Official References

Other rules in Oak Park

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