LicensedRental

San Miguel County, Colorado

Telluride, CO vacation rental requirements

Telluride requires a short-term rental license: homes in the Residential Zone and Limited licenses are held to 29 nights a year, while Classic licenses elsewhere have no night limit but pay a per-bedroom regulatory fee. No one can hold more than two licenses. Stays owe 17.22% in taxes, and platforms don’t collect the town’s 11%.

Checked against official sources November 8, 2026

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Market
About 630 Airbnb listings
Town license
Residential, Classic, Limited, or Lodging
Residential and Limited: 29 nights a year.Source
Limit per owner
Two licenses
Fees
About $1,330 for a one-bedroom Classic
Per-bedroom regulatory fee on Classic licenses (property manager’s summary).Source
Taxes
17.22%
11% to the town, 6.22% to state and county.Source
Platforms
Don’t collect town taxes

Fee amounts come from a May 2026 property manager’s guide; we couldn’t open the town’s license page. Confirm fees and any inspection requirements with the town’s STR Program Administrator.

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.

San Miguel 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 Telluride

  1. Find your zone and license

    If your home is in the Residential Zone (outlined in red on the town map), you need a Residential license. Elsewhere choose Classic (no night limit) or Limited (up to 29 nights a year). Hotels and lodges use the Lodging license. You can hold an interest in no more than two licenses.Source

  2. Apply online

    Since July 1, 2025 all forms are online. Include the Financial Ownership Disclosure and a Bulk Notary Form for notarized documents. Licenses don’t transfer; a new owner or added owner needs a new license and fee.Source

  3. Taxes on each stay

    Stays under 30 days owe 17.22%: 11% to the Town of Telluride and 6.22% to the state and San Miguel County. Airbnb and other platforms collect the state and state-administered taxes on their bookings; for direct bookings, file with the Colorado Department of Revenue. The town has no tax agreement with Airbnb or VRBO: file the town’s 11% in Rentalscape each month for each property, and state and county taxes in the state’s SUTS system.Source

Fees

Classic: $165 + $22 per bedroom + $288 admin + $857 per bedroom regulatory fee; Residential and Limited pay half the base and no regulatory fee

Classic license$165 plus $22 per sleeping room
Administrative fee (all types)$288 per unit
Regulatory fee (Classic)$857 per bedroom
Residential or Limited license50% of Classic base fees plus $288
Town business license$100

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.