LicensedRental

Alabama county rules

Colbert County, AL vacation rental rules and taxes

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.

Checked against official sources November 5, 2026
County lodgings tax
3%
Administered by the state.Source
State lodgings tax
5%
Market
About 65 listings
Muscle Shoals 41, Tuscumbia 24.Source

What to do

  1. Register for the county lodgings tax

    File the 3% county tax with the state through My Alabama Taxes, along with the 5% state tax.Source

  2. Then your city

    Pick your area.

Towns

Full guide

Muscle Shoals

We found no short-term rental permit or rules in Muscle Shoals’s code. You owe 11% (3% city + 3% county + 5% state) in lodgings tax and likely need a business license; some of the local tax may not be collected by Airbnb.

Full guide

Sheffield

Sheffield requires a business license (Schedule P) plus a $50 yearly permit for each short-term rental unit (under 30 days), with fire inspector approval, a local contact who responds within an hour, parking on site, sound indoors, and no events. Lodgings tax is 11% plus $1 a night.

Full guide

Tuscumbia

We found no short-term rental permit or rules in Tuscumbia’s code. You owe 11% (3% city + 3% county + 5% state) in lodgings tax and likely need a business license; some of the local tax may not be collected by Airbnb.

Full guide

Unincorporated Colbert

We found no county short-term rental permit or rules in unincorporated Colbert County. Lodgings tax is 8% (3% county + 5% state); some of it may not be collected by Airbnb.

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 Spot something out of date?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.