LicensedRental

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, 2026
County lodging tax
7%
Self-administered: file with Shelby County Business Revenue.Source
State lodgings tax
4%
Hoover
See the Hoover page
Part of Hoover lies in Shelby County; its permit rules apply there.

What to do

  1. 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

  2. Then your city

    Pick your area. Hoover owners, use the Hoover page under Jefferson County.

Towns

Full guide

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 guide

Calera

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 guide

Chelsea

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 guide

Columbiana

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 guide

Helena

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 guide

Montevallo

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 guide

Pelham

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 guide

Unincorporated 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

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.