LicensedRental

Isle of Wight County, Virginia

Smithfield, VA vacation rental requirements

Smithfield allows short-term rentals for no more than 104 nights a year. Renting rooms or part of the home you live in is allowed by right in residential areas; renting a whole house as its main use takes a Town Council special use permit. You need a town business license, $500,000 in liability insurance, and a notarized affidavit. Stays pay 6% sales tax plus the town’s 6% lodging tax.

Checked against official sources November 7, 2026

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Homestays
Allowed by right
In any district where homes are allowed.Source
Whole-home rentals
Special use permit
From Town Council; also for mixed-use buildings and accessory buildings.Source
Nights
Up to 104 a year
Guests
10, or 2 per bedroom if more
Insurance
$500,000 liability
Taxes
6% sales + 6% lodging tax

Breaking the rules can cost you your town business license.

Your licensing checklist

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

Commonwealth of Virginia

  1. Know who pays the tax

    When a platform like Airbnb books the stay, it collects and pays the state sales tax and the local lodging tax for you. If guests pay you directly, register with Virginia Tax for sales tax and with your county or city for the transient occupancy tax.Source

    Register a business with Virginia Tax →

  2. Register with your locality if it has a registry

    Many counties and cities require short-term rental hosts to register every year. Registration is a simple filing (your name, each address, and the owner’s permission if you lease the home), but listing an unregistered rental can cost up to $500 per violation.Source

  3. Check your zoning

    Counties and cities keep their power to decide where short-term rentals are allowed and whether you need a zoning or use permit. HOA and condo rules still apply on top. Pick your area for the local rules.Source

Isle of Wight County, Virginia

  1. Then your town or area

    Smithfield and Windsor set their own zoning. Pick your area.

Town of Smithfield

  1. Check which kind of rental you have

    Renting part of the home you live in counts as a homestay and is allowed by right in residential areas. Renting a house as its main use, a unit in a mixed-use building, or an accessory building needs a special use permit from Town Council, which can also waive the standard limits.Source

  2. Get a business license and file the affidavit

    Get a Town of Smithfield business license, then sign and notarize the town’s short-term rental affidavit. Attach proof of at least $500,000 in liability insurance that covers renting to guests, and confirm the home has licensed trash service.Source

    Smithfield STR affidavit (PDF) →

  3. Taxes on each stay

    Stays under 90 days owe 6% sales tax, and stays under 30 days also owe the local transient occupancy tax. Airbnb collects both on its bookings. If guests pay you directly, file sales tax with Virginia Tax. Smithfield’s lodging tax is 6% (Virginia Tax chart); you’re responsible for it as the operator. Ask the town how direct bookings file it, and whether the county’s 5% also applies.Source

House rules for guests

Nights per year
104 maximum
Source
Noise
Town noise ordinance (Chapter 38)
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.