Alabama county rules
Jefferson County, AL vacation rental rules and taxes
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.
Checked against official sources November 5, 2026The 7% county tax applies inside city limits too, so city totals add state + county + city.
What to do
Register for the county lodgings tax
File the county’s 7% monthly with the Jefferson County Department of Revenue (205-325-5171), on top of the 4% state tax through My Alabama Taxes.Source
Then your city
Check your city first: several suburbs don’t allow stays under 30 or 90 days in homes.
Towns
Bessemer
We found no short-term rental permit or rules in Bessemer’s code. You owe 17% (6% city + 7% county + 4% state) in lodgings tax and likely need a city business license.
Full guideBirmingham
Birmingham has no short-term rental permit in its code yet. A draft ordinance (city permit, business license, liability insurance, a responsible party who can respond in 30 minutes) was set for a council vote on October 27, 2026; we couldn’t confirm the result. Lodgings tax is 17.5% plus $3 a night.
Full guideFultondale
Fultondale allows short-term rentals only in one- and two-family residential zones, with a city business license (number in every listing), a yearly permit and inspection, $1 million in liability insurance naming the city, and a 24/7 local contact. Lodgings tax is 20% plus $3 a night.
Full guideGardendale
Gardendale requires a $150 yearly short-term rental permit and a business license, and allows short-term rentals only in zones that list them (its C-1, C-2, and C-3 business districts). Units need fire sprinklers, $1 million in liability insurance, and a posted exit plan. Lodgings tax is 20%.
Full guideHomewood
Homewood bans renting any home in its NPD, R-1, R-2, R-3, PR-1, and PR-2 residential zones for less than 90 days, and bans advertising such rentals (Ordinance 2596, 2016). Lodgings tax is 20% where short stays are allowed.
Full guideHoover
Hoover requires a $150 yearly short-term rental permit and a business license for each rental (under 30 days), and allows them only in zoning districts that permit them; the city says that means apartments, condos, and commercial areas, not single-family neighborhoods. Owners need $1 million in liability insurance, a parking survey, and a floor plan. Lodgings tax is 14% plus $2 a night.
Full guideIrondale
Irondale bans renting a dwelling in a residential zone to guests for less than 30 days (Ordinance 2023-13); the municipal court fine is $500. Lodgings tax is 18%.
Full guideLeeds
Leeds’s zoning code lists short-term rentals as a special exception use (Zoning Board of Adjustment approval) in at least one of its business districts (amendment AO2024-05-01). We found no separate rental permit. Lodgings tax is 17% in the Jefferson County part of the city.
Full guideMountain Brook
Mountain Brook bans renting any home, duplex, or apartment in a residential zone for less than 30 days, and bans advertising such rentals (Ordinance 1997, 2017). Lodgings tax is 17%.
Full guideTrussville
Trussville allows short-term rentals by right only in the Downtown Overlay district (condos and apartments capped at 30 licenses). Elsewhere you need a Board of Zoning Adjustment special exception, good for up to 3 years and 45 nights a year. Every rental needs a city business license, an inspection, and a 24/7 local contact. Lodgings tax is 23%.
Full guideUnincorporated Jefferson
We found no Jefferson County short-term rental permit for unincorporated areas. Lodgings tax is 11% (7% county + 4% state); ask county Development Services about zoning before you list.
Full guideVestavia Hills
Vestavia Hills bans renting any home, duplex, or apartment in a residential zone for less than 90 days, and bans advertising such rentals (Ordinance 3204, December 2023). The city says it has issued no business licenses for home sharing; the only path is a conditional use approval ($100, two public hearings). Lodgings tax is 17%.
Sources
- Jefferson County lodgings tax return · Jefferson County Department of Revenue
- Local lodgings tax rates report (November 2026) · Alabama Department of Revenue
- State lodgings tax · Alabama Department of Revenue
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.