LicensedRental

Baldwin County, Alabama

Daphne, AL vacation rental requirements

Daphne requires a city business license plus a $20 yearly permit per short-term rental (Ordinance 2023-04), with a 24-hour local contact who responds within 15 minutes, a fire inspection the first year and every three years, parking on site, and no events. Lodgings tax is 10% plus a $2 nightly room fee.

Checked against official sources November 5, 2026

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City permit
$20 per unit a year
Plus the business license (Schedule D).Source
Inspection
Every 3 years
Fire official approval the first year.Source
Lodgings tax
10% + $2 a night

Your licensing checklist

In order: the state, the county, then the town.

State of Alabama

  1. 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

    My Alabama Taxes →

  2. 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

  3. 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

  4. 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

  5. Then your county and city

    Local business licenses, rental permits, and zoning rules are where Alabama towns differ most. Pick your area.

Baldwin County, Alabama

  1. Check the lodging tax district

    If your rental is in Gulf Shores, on the Fort Morgan peninsula, or in an area that opted in, add the 2% county lodging tax (filed with the state through My Alabama Taxes).Source

  2. Then your city

    City rules differ a lot. Pick your area.

City of Daphne

  1. Register for lodgings tax

    Total lodgings tax here is 10% plus $2 a night (6% city + 4% state). The city’s 6% and $2 room fee are filed with the city. Airbnb collects the state tax and the local taxes the state administers on its bookings; for taxes filed with a city, county, or Avenu, ask your platform whether it collects them. For direct bookings, file everything yourself by the 20th of each month.Source

  2. Get the business license and short-term rental permit

    Apply with a 24-hour local contact, your listing platforms, and an affidavit that no lodging tax is owed; pass the fire inspection. Keep parking on site, sound indoors, no events, respond within 15 minutes, and post the contact placard.Source

Sources

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.