Alabama county rules
Shelby County, AL vacation rental rules and taxes
Shelby County adds a 7% lodging tax (collected by the county) to the 4% state tax, so totals run 14% to 21% with city taxes. Pelham licenses short-term rentals in residential zones; Hoover’s Shelby County part follows Hoover’s permit rules. Lay Lake drives much of the market outside the cities.
Checked against official sources November 5, 2026What to do
Register for the county lodging tax
File the 7% county tax with Shelby County Business Revenue (My Alabama Taxes is preferred), on top of the 4% state tax.Source
Then your city
Pick your area. Hoover owners, use the Hoover page under Jefferson County.
Towns
Alabaster
Alabaster has no short-term rental permit we could find, but its business license schedule covers short-term rentals: $100 plus 0.25% of gross receipts. Lodgings tax is 17%.
Full guideCalera
We found no short-term rental permit or rules in Calera’s code. You owe 18% (7% city + 7% county + 4% state) in lodgings tax and likely need a city business license.
Full guideChelsea
We found no short-term rental permit or rules in Chelsea’s code. You owe 17% (6% city + 7% county + 4% state) in lodgings tax and likely need a city business license.
Full guideColumbiana
We found no short-term rental permit or rules in Columbiana’s code. You owe 14% (3% city + 7% county + 4% state) in lodgings tax and likely need a city business license.
Full guideHelena
We found no short-term rental permit or rules in Helena’s code. You owe 21% (10% city + 7% county + 4% state) in lodgings tax and likely need a city business license.
Full guideMontevallo
We found no short-term rental permit or rules in Montevallo’s code. You owe 17% (6% city + 7% county + 4% state) in lodgings tax and likely need a city business license.
Full guidePelham
Pelham requires a short-term rental license for each property in its residential zones, with an emergency contact who responds within an hour, rental insurance, written notice to neighbors, one guest party at a time, and no events. Lodgings tax is 17%.
Full guideUnincorporated Shelby
We found no Shelby County short-term rental permit, but county zoning can still bar them: in 2021 county staff called an Airbnb in the Meadowbrook special district a use “not permitted.” Lodgings tax is 11% (7% county + 4% state).
Sources
- Business Revenue · Shelby County
- 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.