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A mixture of the words chill and relax
except it seems to be there two words multiplied so its a sort of extreme relaxing.
Can be used for when you are sitting in your garden on a summer evening with a beer listening to 'Time of the Season' by The Zombies.
Or if someone is having a major freaker and going ape shit at people you can tell them to chillax.
Chillax by Black_Rose_325 January 13, 2009
Obvious portmanteau of "to chill" and "to relax".

Originated in the Netherlands, where students (both foreign and Dutch) spent so much time chilling & relaxing that both regular words were simply not strong enough to describe the constant and intense state of relexation said students were in.

It is used the very same way as "to chill" or "to relax" but has a slightly stronger connotation.
"Dude, you wanna come to the club tonight?"

"Nah man, I stay at home and chillax"
Chillax by BigBadBastard March 31, 2009
Chillax by Ereck Flowers November 22, 2014
(SLANG) To chill out, hang around, and do almost nothing. (Relaxing.)
"There's nothing to do, so I'm just chillaxing."
"Just chillax! I got it all under control!"
Chillax by Nicole Schroering February 1, 2009