How much does it cost to license a short-term rental?
There is no single price. You pay a few separate fees to the state, the county and the city, and the city usually costs the most. Here is how it adds up, with real fees from cities we track.
The three layers you pay for
Most short-term rentals pay some combination of these:
- State: a rental license in states that require one, like Florida's DBPR vacation rental license, plus sales or lodging tax registration. Tax registration is often free or low cost.
- County: a tourist, occupancy or bed tax account. Registration is usually inexpensive; the real cost is the tax you collect and file.
- City: a business license or tax receipt, a short-term rental permit or registration, and sometimes an inspection. This is where costs vary the most.
What cities actually charge
City fees range from a couple hundred dollars to nearly a thousand. These are 2026 fees from the city guides on our site:
| City | City permit or registration | Renewal |
|---|---|---|
| Fort Lauderdale, FL | $880 for up to 4 units on one folio, includes first inspection | Annual |
| Pompano Beach, FL | $675 single family or duplex; $750 triplex or quadplex | $375 per year |
| Nashville, TN | $313 | Annual |
| Scottsdale, AZ | $250 per property | Annual |
| Austin, TX | Roughly $740 to $840 for a new license | Every two years |
City business tax receipts, state license fees and county registrations are usually billed separately on top of these.
Costs owners forget to budget for
- Inspection fixes. Smoke detectors, fire extinguishers, posted safety information, and in some cities pool barriers or noise monitors.
- Insurance. Some cities require proof of liability coverage. Scottsdale, for example, requires at least $500,000.
- Re-inspections and late fees. A failed inspection or missed renewal can mean paying twice.
- Open violations. Some cities, like Hollywood, FL, won't license a property with open code violations until they're resolved.
- Your time. Separate portals, forms and follow-ups for each agency add up fast.
The cost of skipping it
Licensing is cheap compared with operating without it. Miami Beach fines for illegal short-term rentals start at $20,000, and Fort Lauderdale can fine up to $5,000 a day for operating while suspended. Platforms are also removing listings that can't show a valid license number in cities like Austin.
Frequently asked questions
How much does a short-term rental license cost?
It depends on the city. City permits in our guides range from $250 a year in Scottsdale to $880 in Fort Lauderdale, plus state and county fees.
Do I pay licensing fees every year?
Usually. Most cities and states renew annually, while some, like Austin, issue licenses that last two years.
Are tax registrations expensive?
Registration is often free or low cost. The ongoing cost is the lodging taxes you collect and file.
General information, not legal or tax advice. Rules and fees change and vary by location; confirm with the relevant agency before acting.