LicensedRental

Garfield County, Colorado

Carbondale, CO vacation rental requirements

Carbondale licenses short-term rentals mainly for owners who live in the home at least 183 days a year; licenses for homes that aren’t a primary residence are limited to 50, with a waitlist. Every rental gets a town building inspection. Stays owe a 6% town STR tax plus the 2% lodging tax and sales taxes.

Checked against official sources November 8, 2026

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

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Market
About 145 Airbnb listings
Town license
$100 to $875 a year
Owner-occupied $100 per bedroom (max $400); others $175 per bedroom (max $875).Source
Non-primary homes
50 licenses, with a waitlist
Guests
2 per bedroom + 2
Children under five don’t count.Source
Inspection
Town building inspection, in person
Town taxes
6% STR tax + 2% lodging tax
Plus state, county, and town sales taxes.Source

The town page describes where non-primary licenses are allowed in two different ways (only in the Historic Commercial Core, and 50 licenses outside it). Ask the town which applies to your address.

Your licensing checklist

In order: the state, the county, then the town.

State of Colorado

  1. Get a state sales tax license

    If you rent rooms or a home for stays under 30 days, Colorado requires a sales tax license from the Department of Revenue. Platforms like Airbnb collect the state and state-administered taxes on their bookings; you file for anything booked directly.Source

    MyBiz Colorado →

  2. Check for home-rule city taxes

    Many cities and mountain towns collect their own sales and lodging taxes. Platforms aren’t required by the state to collect these, so you may need a separate city tax license and returns.Source

  3. Get your county or city rental license

    Most Colorado mountain counties and towns, and Denver, require a short-term rental license or permit, often with an inspection, an occupancy limit, posted information, and a local responder. Pick your area for the rules.

Garfield County, Colorado

  1. Get a state sales tax license

    Needed for any rental unless a platform covers all your taxes.Source

  2. Then your town or area

    Towns set their own rental licenses and collect their own taxes, and the county’s rules cover only areas outside town limits. Pick your area.

Town of Carbondale

  1. Pick your license

    If you live in the home at least 183 days a year, apply for a primary residence license with proof such as a driver’s license, voter registration, or tax return. Otherwise you need one of the 50 non-primary licenses; extra applicants go on a waitlist. Deed-restricted Community Housing units can’t be licensed, and a town license doesn’t override HOA covenants.Source

  2. Apply online and pass the inspection

    Apply through the town’s online licensing portal and name a local contact who answers 24/7 and can be there within 60 minutes. The Building Department then inspects in person with you or your manager present: egress windows in every bedroom, smoke and CO alarms, and fire extinguishers near the stove and outside.Source

    Carbondale STR license →

  3. Renew yearly

    Licenses expire a year after they’re issued; renewals resubmit the same documents. Put the license number in every ad.Source

  4. Taxes on each stay

    Stays under 30 days owe state, Garfield County, and town sales taxes plus Carbondale’s 2% lodging tax and 6% STR tax. Airbnb and other platforms collect the state and state-administered taxes on their bookings; for direct bookings, file with the Colorado Department of Revenue. Even if you list on Airbnb or VRBO, file the town return every month; taxes the platform already paid are credited against what you owe.Source

Fees

$100 to $875 a year by bedrooms and license type

Owner-occupied (per bedroom)$100, $400 max
Non-owner-occupied (per bedroom)$175, $875 max

Source

Inspection checklist

What the inspector looks for, from Town of Carbondale’s published checklist.

  • Egress windowsIn every bedroom.Source
  • Smoke and carbon monoxide alarmsPer the current building code.Source
  • Fire extinguishersNear cooking appliances, inside and outside.Source

House rules for guests

Local contact
24/7, on site within 60 minutes
Also keeps parking areas clear of snow and ice.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.