LicensedRental

Jefferson County, Alabama

Birmingham, AL vacation rental requirements

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.

Checked against official sources November 5, 2026

Download checklist (PDF)Free. A printable version of this guide to tick off, with the official sources.

Only when this town’s rules, fees, or forms change. Unsubscribe anytime.

City rental permit
Pending
The Committee of the Whole advanced the ordinance 4–1 on September 30, 2026. Zoning limits are a separate process with no timeline.Source
Proposed rules
Permit, business license, insurance
Plus inspections, HOA certification, and a responsible party who responds within 30 minutes.Source
Lodgings tax
17.5% + $3 a night
6.5% city + $3 room fee (both filed with the city) + 7% county + 4% state.Source

Earlier drafts (2025–2026) would have banned short-term rentals in single-family zones, capped them at 1,000 citywide, and required a responsible party within 10 miles. Those zoning pieces were split off and have no timeline.

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.

Jefferson County, Alabama

  1. 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

  2. Then your city

    Check your city first: several suburbs don’t allow stays under 30 or 90 days in homes.

City of Birmingham

  1. Register for lodgings tax

    Total lodgings tax here is 17.5% plus $3 a night. The city’s 6.5% and $3 nightly fee are filed with the city (Airbnb collects both on its bookings). The county’s 7% is filed with the Jefferson County Department of Revenue. Airbnb collects the state tax and the local taxes the state administers. For county or city taxes filed with the county, the city, or Avenu, ask your platform whether it remits them; if not, file them yourself by the 20th of each month.Source

  2. Check the new ordinance before you list

    Ask the city whether the short-term rental ordinance passed and when permits start. The draft required a city permit, a business license, proof of liability insurance, HOA compliance, an inspection, and a local responsible party who can reach the property within 30 minutes.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.