LicensedRental

Alabama county rules

Madison County, AL vacation rental rules and taxes

Madison County adds a 1% lodgings tax (filed with the state) to the 5% state tax. Huntsville allows short-term rentals only in a few zoning districts and requires a business license, and Madison adopted a permit system with a 190-unit cap in June 2026.

Checked against official sources November 5, 2026
County lodgings tax
1%
Administered by the state.Source
State lodgings tax
5%
Mountain Lakes rate.Source
Market
About 680 Airbnb listings
Huntsville 514 and Madison 166 (AirROI, 12 months to October 2026).Source

Parts of Huntsville and Madison lie in Limestone County, which has no county lodgings tax. Triana posted a draft short-term rental ordinance in 2026; ask the town whether it was adopted.

What to do

  1. Register for the county lodgings tax

    File the 1% county tax with the state through My Alabama Taxes, along with the 5% state tax.Source

  2. Then your city

    Huntsville and Madison have their own rules and 10% city taxes. Pick your area.

Towns

Full guide

Huntsville

Huntsville treats short-term rentals (179 days or less) like motels under zoning: they’re allowed as a primary use only in Residence 2-B and some business, industrial, and Research Park districts, and by special exception in a few others, not in most residential zones. Every rental needs a city business license after zoning approval. Lodgings tax is 16% plus $2 a night.

Full guide

Madison (city)

Madison voted in June 2026 to allow short-term rentals with an annual permit, a cap of about 190 permits (0.75% of housing), yearly inspections, and a local contact who can reach the property within 30 minutes. The proposed rules carried a $350 application fee and a business license. Lodgings tax is 16% plus $2 a night.

Full guide

Unincorporated Madison

We found no county short-term rental permit or rules in unincorporated Madison County. Lodgings tax is 6% (5% state + 1% county); 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 Spot something out of date?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.