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Illinois Airbnb & Short-Term Rental Laws 2026

LawfulStay tracks short-term rental (STR / Airbnb / Vrbo / holiday let / vacation rental) regulations for 9 jurisdictions across Illinois. Select a city below for current permit requirements, tax rates, and compliance details.

5 Active 1 Restricted 1 Banned 2 Pending

Illinois Airbnb & Vacation Rental Regulation Overview

The short-term rental regulatory landscape in Illinois encompasses 9 tracked jurisdictions: 5 with active regulations, 1 with restrictions, 1 where STRs are banned, 2 with pending legislation. Hosts operating on platforms like Airbnb, VRBO, and Booking.com should verify local requirements before listing, as rules vary significantly between cities and regions.

Approximately 78% of tracked jurisdictions in Illinois require some form of permit, license, or registration for short-term rental operations. Requirements range from simple online registration to comprehensive permit applications with inspections.

Tax obligations apply in 5 of 9 jurisdictions. Common taxes include occupancy taxes, tourist levies, and sales taxes. Many jurisdictions require hosts to register for tax collection, and some platforms like Airbnb collect and remit taxes automatically in select locations.

Notable jurisdictions where short-term rentals are currently banned or heavily restricted include Naperville. Hosts should check these listings for details on specific prohibitions and any exceptions that may apply.

LawfulStay monitors Illinois STR regulations daily and updates this page as rules change. Each city page includes detailed permit requirements, fee schedules, tax rates, zoning rules, and penalty information sourced from official government websites.

Naperville
Limited grandfather exception: If a short-term rental agreement was signed by all parties prior to August 19, 2020, for rental dates through October 19, 2020, t…
Banned
Alton
Zoning amendments passed June 24, 2026. Non-owner-occupied units subject to density caps and 500 ft separation. Noise monitoring device required for non-owner-o…
Restricted
Arlington Heights
Arlington Heights has banned all short-term rentals under 30 days effective July 1, 2026. The Village Board approved the ban in March 2026 citing noise, parties…
Active
Chicago
Lawsuit is the first time Chicago has sued Airbnb directly; signals escalation from citation-based enforcement to platform-level litigation.
Active
Galena
The Rental Housing Inspection Code (Ch. 150.25) requires all rental properties (excluding single-family homes with one rental unit) to maintain a valid Rental C…
Active
Springfield
STR regulations enacted in 2019 and actively enforced since 2024. Safety inspections required. Quiet hours typically 10 PM–7 AM. Hosts must post 24-hour contact…
Active
Streator
Page exists; detailed research pending.
Active
Forest Park
Forest Park, Illinois is in the early stages of drafting STR regulations following a pattern of nuisance incidents at a rental property on Lathrop Avenue that g…
Pending
Winnetka
The Winnetka Village Board advanced a proposal on July 7 2026 to ban rentals of dwelling units for fewer than 60 consecutive days, effectively prohibiting Airbn…
Pending