LicensedRental

Madison County, Alabama

Huntsville, AL vacation rental requirements

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.

Checked against official sources November 5, 2026

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Zoning
Not allowed in most residential zones
Primary use in Residence 2-B, C-3, C-4, C-5, Light and Heavy Industry, Airport Industrial Park, and Research Park Commercial; special exception in C-2, C-6, Research Park Applications 1 and 2, Research Park 2, and Airport Commercial.Source
Business license
Required
License schedule 47 (hotel/motel/lodging), §15-85. Review can take up to 10 business days.Source
Lodgings tax
16% + $2 a night
10% city + $2 room fee (city-administered) + 5% state + 1% county. 15% + $2 in the Limestone County part.Source

The city page still lists a 9% city lodging tax; the state’s November 2026 report shows 10% plus $2 a night from October 1, 2026.

Garbage at a short-term rental is billed at the commercial rate (§22-183).

Airbnb’s Alabama tax article lists the state tax and the local taxes the state administers. Taxes filed with a city, a county, or Avenu Insights may not be collected by the platform, so ask what it collects and file the rest yourself.

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.

Madison County, Alabama

  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.

City of Huntsville

  1. Confirm your zoning

    Check your address on the city’s zoning map or call Zoning Administration. In most residential districts a short-term rental isn’t allowed; in some districts it needs a special exception.Source

    Huntsville short-term rentals →

  2. Get a business license

    After zoning approval, apply with the Finance Department. The application goes to each department for review, and the city tells you the fee.Source

  3. Register for lodgings tax

    Total lodgings tax here is 16% plus $2 a night. The city’s 10% and $2 room fee are city taxes (the city points owners to My Alabama Taxes to file); the state 5% and county 1% are filed with the state. Airbnb collects the state 5% and any state-administered local tax on its bookings. Ask your platform whether it also collects the other local taxes, and file anything it doesn’t (and all direct bookings) by the 20th of each month.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.