LicensedRental

Alabama county rules

Etowah County, AL vacation rental rules and taxes

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.

Checked against official sources November 5, 2026
State lodgings tax
5%
Mountain Lakes county rate.Source
County lodging tax
2% + $1.50 a night
Filed with the state through My Alabama Taxes since August 1, 2026.Source
City rules
Gadsden, Rainbow City, Glencoe, Southside
Permits in three; Southside bans stays under 90 days in residential zones.

The county tax applies inside city limits too, so city totals below include it.

What to do

  1. Register for the county lodging tax

    File the county’s 2% and $1.50 nightly room fee with the state through My Alabama Taxes, along with the 5% state tax.Source

  2. Then your city

    City rules differ a lot here. Pick your area.

Towns

Full guide

Attalla

We found no short-term rental permit or rules in Attalla’s code. You owe 12% plus $1.50 a night (5% city + 5% state + 2% county) in lodgings tax and likely need a city business license.

Full guide

Gadsden

Gadsden doesn’t allow short-term rentals in R-1 single-family zones (unless a special exception was granted before July 1, 2023) and requires a yearly city permit (at least $100), a business license, short-term rental insurance, a 24/7 contact who can be on site within an hour, and notice to neighbors. Lodgings tax is 17% plus $1.50 a night since the city doubled its rate in October 2026.

Full guide

Glencoe

Glencoe requires a short-term rental license for each property (in residential, agricultural, NB, and GB districts), with a contact who answers within an hour, vacation rental insurance, and written notice to owners within 500 feet. Occupancy is the lesser of 2 per bedroom plus 2 or 4 per parking space, and lodgings tax is 12% plus $1.50 a night (5% city, 5% state, 2% county).

Full guide

Rainbow City

Rainbow City requires a renting and leasing business license and a $50 yearly inspection permit for each short-term rental, a contact who answers within an hour, rental insurance, and notice to adjacent owners. Occupancy is 2 people plus 2 per bedroom, and lodgings tax is 7% plus $1.50 a night.

Full guide

Southside

Southside makes it unlawful to rent or advertise a home in its R-1, R-2, R-3, RG, RT, or AG zones for less than 90 consecutive days (Ordinance 0-008-2016). Each day of a violation is a separate offense.

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.