State rules
Alabama vacation rental license and rules
Alabama has no state license for vacation homes. Every short-term rental (under 180 days) owes the state lodgings tax, 4% in most counties and 5% in the 16 Mountain Lakes counties, plus county and city lodgings taxes. Since 2025 booking platforms must collect these taxes. Alabama doesn’t limit local rules, so cities can require licenses, cap rentals, or set minimum stays.
Checked against official sources November 5, 2026We found no 2024–2026 Alabama law limiting local short-term rental rules. Unlike Florida, Alabama cities can ban or cap vacation rentals and set minimum stays.
What to do
Register for the lodgings tax
Create an account at My Alabama Taxes (MAT) and register for state lodgings tax, plus any local lodgings taxes the state administers for your county and city. Cities that collect their own tax need a separate account with the city.Source
File by the 20th
Returns are due by the 20th of the following month. Small filers can ask (before February 20) to file quarterly, twice a year, or yearly. Paying on time earns a small discount (5% of the first $100 of tax, 2% after).Source
Know what the platform collects
Under Act 2024-334, Airbnb, VRBO, and other booking platforms collect the state and local lodgings taxes on their bookings unless your contract says you remit. You still owe tax on direct bookings, and the law adds a yearly report of every unit rented more than 14 days.Source
Keep filing once you register
If every booking goes through a platform that collects all your state and local lodgings taxes, you may not need your own account. But if you take direct bookings, or the platform doesn’t collect one of your local taxes (often the ones filed with a city, a county, or Avenu), register and file it yourself. Once registered, file every period, even a $0 return, and report platform-collected sales as a deduction. Some county offices ask owners to keep their own account and file monthly even when the platform pays, so ask yours.Source
Then your county and city
Local business licenses, rental permits, and zoning rules are where Alabama towns differ most. Pick your area.
Counties
40 counties so far, with more added every month. Don’t see yours? Tell us where your rental is.
Autauga County
Autauga County’s lodgings tax, collected by Avenu Insights, is 10% outside Prattville and 3% inside it, on top of the 4% state tax. We found no county short-term rental permit, and Prattville’s zoning section for short-term rentals is reserved.
15 town guidesBaldwin County
Baldwin County adds a 2% lodging tax only inside its lodging tax district (Gulf Shores, the Fort Morgan peninsula, and areas that opted in, such as Orange Beach), on top of the 4% state tax. City rules vary widely: Gulf Shores, Foley, Daphne, and Bay Minette license short-term rentals, Orange Beach limits them in single-family zones, and Fairhope bars stays under 30 days in R-1 to R-3.
1 town guidesBarbour County
Barbour County has no county lodgings tax in the state’s rate report, so the 4% state tax applies outside the cities. Eufaula, on Lake Eufaula, requires Board of Adjustment approval and a $150 permit for short-term rentals and adds 6% plus $3.50 a night.
4 town guidesCalhoun County
Calhoun County adds a 1% lodgings tax (filed with the state) to the 4% state tax. Anniston, Oxford, Jacksonville, and Piedmont all license short-term rentals; Oxford also needs City Council approval for each one.
2 town guidesChambers County
Chambers County, on West Point Lake, adds a 4% county lodgings tax (collected by Avenu Insights) to the 4% state tax. We found no short-term rental rules in Valley’s or Lanett’s codes.
4 town guidesCherokee County
Weiss Lake gives Cherokee County a busy vacation-rental market. It’s a Mountain Lakes county, so lodgings tax starts at 5% state plus 5% county and $2 a night (all filed with the state); we found no county or city short-term rental permits.
2 town guidesChilton County
Chilton County adds a 5% lodging tax, filed with the state, on top of the 4% state tax. Many listings are lake houses on Lake Mitchell and Lay Lake; we found no county short-term rental permit.
2 town guidesCleburne County
Cleburne County, home to Cheaha Mountain and the Talladega National Forest, adds a 6% county lodgings tax (3% inside Heflin) to the 4% state tax, filed with the state. Heflin licenses short-term rentals in its residential districts.
1 town guidesCoffee County
Coffee County adds a 4% lodgings tax, collected by Avenu Insights, on top of the 4% state tax. Enterprise, next to Fort Novosel, licenses and permits every short-term rental (under 90 days).
4 town guidesColbert County
Colbert County adds a 3% lodgings tax (filed with the state), and Muscle Shoals, Sheffield, and Tuscumbia each add 3%, so city rentals owe 11%. Sheffield requires a $50 yearly short-term rental permit on top of its business license.
1 town guidesCoosa County
Coosa County takes in Lake Martin’s western shore plus Lay and Mitchell lakes, and adds a 6% county lodgings tax (collected by Avenu Insights) to the 4% state tax. We found no county short-term rental permit.
4 town guidesCovington County
Covington County charges a 7% county lodgings tax on rented houses and rooms countywide, collected by Avenu Insights, on top of the 4% state tax. Many listings are lake homes on Lake Jackson, Gantt Lake, and Point A. We found no short-term rental permits in the county or in Andalusia’s and Opp’s codes.
2 town guidesCullman County
Cullman County adds a 5% lodgings tax that it collects itself, on top of the 5% state tax. The City of Cullman licenses short-term rentals under its zoning code, and much of the Smith Lake market is unincorporated.
2 town guidesDale County
Dale County, home of Fort Novosel, adds a 4% lodgings tax countywide (collected by Avenu Insights) on top of the 4% state tax. We found no short-term rental rules in Ozark’s or Daleville’s codes; the Dale County part of Enterprise follows Enterprise’s rules.
1 town guidesDallas County
Dallas County has no county lodgings tax in the state’s rate report, so the 4% state tax applies outside the cities. Selma, a civil rights history destination, adds 9% plus $2 a night, filed with the state. We found no short-term rental permits.
3 town guidesDeKalb County
DeKalb County adds a 2% lodgings tax (1% inside Fort Payne), filed with the state. Fort Payne requires a $20 yearly permit, an inspection, and a business license, and needs a zoning variance in R-1. Mentone, a mountain cabin market, has no rules we could find.
5 town guidesElmore County
Elmore County, on the west side of Lake Martin, charges a county lodgings tax collected by Avenu Insights: 11.5% plus $2 a night outside the cities, and smaller shares inside Wetumpka, Millbrook, Tallassee, and Prattville. With the state’s 4%, most of the county pays 15.5% plus $2 a night. We found no county short-term rental permit.
5 town guidesEtowah County
Etowah County is a Mountain Lakes county, so the state lodgings tax is 5%, and the county adds 2% plus $1.50 a night, all filed with the state since August 2026. Gadsden bans new short-term rentals in R-1 and requires a yearly permit elsewhere; Rainbow City and Glencoe require permits, and Southside bans rentals under 90 days in its residential zones.
2 town guidesHouston County
Houston County charges a 7% county lodgings tax outside Dothan and 1% inside it (since February 2025), both collected by Avenu Insights, on top of the 4% state tax. Dothan licenses every short-term rental and needs zoning approval for whole-home rentals in residential zones.
4 town guidesJackson County
Jackson County adds a 2% lodgings tax plus $1 a night (filed with the state). Scottsboro requires a $25 yearly short-term rental permit and a business license.
12 town guidesJefferson County
Jefferson County adds a 7% lodgings tax (collected by the county) to the 4% state tax, and cities add their own, so totals run 14% to 23%. City rules differ sharply: Homewood, Mountain Brook, Vestavia Hills, and Irondale ban short stays in residential zones, Hoover, Trussville, Gardendale, and Fultondale require permits, and Birmingham is still writing its rules.
4 town guidesLauderdale County
Lauderdale County adds a 6% lodgings tax everywhere in the county, including Florence (filed with the state), so most rentals owe 11%. Florence requires a short-term rental permit, certificate of occupancy, and business license for each rental.
4 town guidesLee County
Lee County adds a 2% lodgings tax (filed with the state) to the 4% state tax. Auburn, with one of Alabama’s biggest game-day rental markets, splits rentals into owner-occupied homestays and non-primary rentals capped at 240 days a year, each with its own zoning permit.
2 town guidesLimestone County
Limestone County has no county lodgings tax in the state’s November 2026 report, so the rate outside cities is the 5% state tax. Athens added short-term rental rules in 2024, and parts of Huntsville, Madison, and Decatur extend into the county.
3 town guidesMadison County
Madison County adds a 1% lodgings tax (filed with the state) to the 5% state tax. Huntsville allows short-term rentals only in a few zoning districts and requires a business license, and Madison adopted a permit system with a 190-unit cap in June 2026.
5 town guidesMarshall County
Marshall County adds a 1% lodgings tax (filed with the state). Guntersville requires a $20 yearly permit and business license for rentals in residential zones, and Boaz licenses short-term rentals under its zoning code.
12 town guidesMobile County
Mobile County adds a 2% lodging tax countywide (collected by the Mobile County License Commission) on top of the 4% state tax, and sells the state and county business license. The City of Mobile requires a business license and zoning approval for each short-term rental, and Dauphin Island caps rentals and sets minimum stays.
1 town guidesMonroe County
Monroe County adds a 4% lodgings tax, collected by Avenu Insights, on top of the 4% state tax. Monroeville licenses and permits short-term rentals (stays under 120 days) since November 2024.
2 town guidesMontgomery County
Montgomery County adds a $2.25 per-room-night lodgings fee, which the county collects itself, on top of the 4% state tax. The City of Montgomery adopted a short-term rental ordinance in September 2026: a $250 yearly license per property, a licensed inspection, $1 million in insurance, and a one-hour response time.
4 town guidesMorgan County
Morgan County has no county lodgings tax in the state’s report. Decatur legalized short-term rentals on April 1, 2026, with 150 permits a year, and Priceville licenses them under its zoning code.
1 town guidesPike County
Pike County adds a 4% lodgings tax countywide (in Troy, Brundidge, Banks, Goshen, and unincorporated areas), filed with the state, so most of the county pays 8%. Troy adds its own 4%, collected by the city. We found no short-term rental permits.
3 town guidesRandolph County
Lake Wedowee draws vacation renters to Randolph County, which adds a 4% county lodgings tax (collected by Avenu Insights) to the 4% state tax. We found no county or city short-term rental permits.
1 town guidesRussell County
Russell County adds a 2% lodgings tax (filed with the state) to the 4% state tax. Phenix City licenses short-term rentals and allows them by right only in its R-2 and R-3 residential zones.
8 town guidesShelby County
Shelby County adds a 7% lodging tax (collected by the county) to the 4% state tax, so totals run 14% to 21% with city taxes. Pelham licenses short-term rentals in residential zones; Hoover’s Shelby County part follows Hoover’s permit rules. Lay Lake drives much of the market outside the cities.
5 town guidesSt. Clair County
St. Clair County raised its lodging tax to 6% (5% inside Pell City) in October 2024, collected by the county, on top of the 4% state tax. Logan Martin Lake drives the market; Pell City’s zoning generally doesn’t allow short-term rentals.
5 town guidesTalladega County
Talladega County adds a 2% lodgings tax (filed with the state) to the 4% state tax; race weekends at Talladega Superspeedway and Logan Martin Lake drive demand. Sylacauga licenses short-term rentals; we found no rules in Talladega or Lincoln, which both add 10% city lodging taxes.
4 town guidesTallapoosa County
Tallapoosa County holds most of Lake Martin’s shoreline (the Elmore County side, around Eclectic and Kowaliga, is covered separately). The county charges a 10% lodgings tax in unincorporated areas, filed with the state from November 1, 2026, so lake homes outside cities owe 14%. We found no county or city short-term rental permits.
3 town guidesTuscaloosa County
Tuscaloosa County has a big game-day rental market but, as far as we found, no county lodging tax, so the state’s 4% applies outside cities. The City of Tuscaloosa limits short-term rentals by zone and days per year and adds an 11% lodging tax; Northport adds 11% and has zoning standards for short-term rentals.
2 town guidesWalker County
Walker County’s lodging tax is 9% (collected by Avenu Insights), on top of the 4% state tax. Smith Lake rentals make up much of the market; Jasper licenses short-term rentals.
3 town guidesWinston County
Since November 1, 2026, Winston County charges an 8% lodgings tax plus a $5 nightly fire protection fee on short-term rentals countywide, collected by Avenu Insights, on top of the 5% state tax. We found no county short-term rental permit.
Sources
- State lodgings tax · Alabama Department of Revenue
- Lodgings tax FAQs · Alabama Department of Revenue
- Alabama Tourism Tax Protection Act (Act 2024-334) · Alabama Department of Revenue
- Alabama vacation rental tax guide · Avalara MyLodgeTax
- Local lodgings tax rates report (November 2026) · Alabama Department of Revenue
- Occupancy tax collection and remittance by Airbnb in Alabama · Airbnb
A plain-language summary to help you prepare, not legal advice. Rules and fees change; confirm with the office before you apply. Spot something out of date? Email hello@licensedrental.com.