Champaign Short-Term Rental Regulations

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Permit & Licensing

Champaign does not require a specific STR permit at this time. Check with local government for any zoning or business license requirements.

Tax Obligations

Combined rate: 13% of gross rental income.

Collection: The owner, manager, or operator of every hotel or motel room (a term the code defines broadly to include any room in a structure 'advertised or held out to the public' for lodging) must act as trustee for the City, secure the 7% tax from the renter at the time of payment, and remit it to the City Finance Director. At the state level, hosting platforms/re-renters meeting the 're-renter' definition must register with the Illinois Department of Revenue and collect/remit the state Hotel Operators' Occupation Tax via Form RHM-1 (effective July 1, 2025).

Filing: Monthly (return due on or before the fifteenth day of the calendar month succeeding the end of the filing month)

Rental Limits

Champaign does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

• No zoning classification or permit process specific to typical short-term rentals (whole-home stays without an owner present, booked via platforms such as Airbnb/Vrbo) exists in the Zoning Code.
• The only lodging-type use the code defines is 'Bed and breakfast' — an owner-occupied single-family detached dwelling in which no more than three bedrooms are rented to transient guests and breakfast only is served to overnight guests — a narrow category that does not cover most short-term rentals.
• Otherwise, general residential zoning district regulations apply to the dwelling.

Insurance & Safety

Insurance

Champaign does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Platform Requirements

Hosting platforms that meet the state's 're-renter' definition must register a Hotel Operators' Occupation Tax Account with the Illinois Department of Revenue if they have an Illinois presence. Out-of-state platforms with no Illinois presence must register once, in the preceding 12 months, their cumulative gross receipts from Illinois rentals reach $100,000 or they complete 200 or more separate Illinois rental transactions.

Market Snapshot

Demand context for Champaign from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Champaign:

1. Register for tax accounts. Set up lodging tax accounts with City of Champaign Finance Director; Illinois Department of Revenue.
2. Collect and remit taxes. 13% on all bookings.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Champaign?

Champaign does not require a dedicated short-term rental permit, but you must register for and remit applicable lodging taxes. Confirm local zoning rules still allow short-term rentals at your property before listing.

Does Champaign require a short-term rental to be your primary residence?

No. Champaign does not impose a primary-residence requirement, so non-owner-occupied rentals are allowed.

How many days a year can you short-term rent in Champaign?

Champaign does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Champaign?

Short-term rental stays in Champaign are subject to a combined 13% in lodging taxes. This combines 7% Champaign Hotel and Motel Privilege Tax + 6% Illinois Hotel Operators' Occupation Tax. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.