Airbnb users could soon face another expense when planning a trip to Chicago—a new bill would impose an additional tax on short-term rentals across Illinois.
Here’s what to know.
Breaking down House Bill 5776
House Bill 5776 was recently introduced to the Illinois General Assembly (IGA).
The legislation proposes an “excise tax” on short-term property rentals of less than 30 days throughout Illinois.
The tax would apply at a rate of 4% of the short-term rental base price, to be paid by renters and given to the state by rental operators.
Proceeds from the tax would support a newly created Community Land Trust Fund for affordable housing.
Community Land Trusts are housing organizations which own property and work to keep rental prices affordable.
According to IGA, the Illinois Housing Development Authority will use the fund for the “development, staffing, and capacity building and technical assistance” of state land trusts.
In short, whether you’re renting an Airbnb, Vrbo, or other short-term rental option on your next visit to Chicago, it could soon include an additional fee.
If approved by the IGA, the bill would go into effect on January 1, 2027.