LicensedRental

Baldwin County, Alabama

Orange Beach, AL vacation rental requirements

Orange Beach requires a $500 vacation rental license for houses and duplexes rented 14 days or less in its single-family zones (RS-1, RS-2, RS-3, MHS, outside the beach overlay), with a floor plan, site and parking plan, two guests per bedroom plus two children, and a 30-minute complaint response. Every short-term rental also needs a city business license (at least $120 a unit), and lodgings tax is 16%.

Checked against official sources November 5, 2026

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Vacation rental license
$500
Houses and duplexes in RS-1, RS-2, RS-3, and MHS, rented 14 days or less (Ordinance 2018-1283).Source
Maximum guests
2 per bedroom + 2 children
Up to 12 for six bedrooms; children 14 and under.Source
Business license
At least $120 per unit
$1 per $1,000 of gross receipts over $20,000 (Schedule X).Source
Lodgings tax
16%
10% city + 4% state + 2% county, on rent, cleaning, and parking passes.Source

News reports in 2018 said existing single-family rentals were grandfathered when the city limited new ones. Ask the city whether it still issues new licenses in the RS districts.

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 Orange Beach

  1. Register for lodgings tax

    Total lodgings tax here is 16%. The city’s 10% is filed with the city; the state and county shares go through My Alabama Taxes. 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 a city business license

    Apply through the city’s online licensing portal.Source

    Orange Beach business licenses →

  3. In single-family zones, get the vacation rental license

    Submit a floor plan, site and parking plan, a fire, building, and safety affidavit, and a 24/7 contact, and pay $500. Use a written rental agreement and give guests the good-neighbor brochure. The city can inspect on 24 hours’ notice.Source

  4. Respond within 30 minutes

    The owner or agent must answer complaints within 30 minutes.Source

House rules for guests

Maximum guests
2 per bedroom + 2 children 14 and under
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.