LicensedRental

Lancaster County, Virginia

Kilmarnock, VA vacation rental requirements

Kilmarnock allows short-term vacation rentals by right in its R-2, C-1, and C-2 districts and the Steptoe’s overlay, and with a conditional use permit in R-1. Rentals owe an 8% town lodging tax on top of 5.3% sales tax.

Checked against official sources November 7, 2026

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

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Market
31 Airbnb listings
By right
R-2, C-1, C-2, Steptoe’s overlay
R-1
Conditional use permit
Taxes
5.3% sales + 8% lodging tax

These rules come from the town’s 2017 zoning change as reported by the Rappahannock Record. Confirm current districts, the tax rate, and any registration with the town before you list.

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

Lancaster County, Virginia

  1. Then your town or area

    Towns set their own zoning and lodging tax, and the county sets them outside town limits. Pick your area.

Town of Kilmarnock

  1. Check your district

    Ask the town which district your home is in. In R-1 you need a conditional use permit from the town; in R-2, C-1, C-2, and the Steptoe’s overlay, rentals are allowed by right.Source

  2. Taxes on each stay

    Stays under 90 days owe 5.3% 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. Kilmarnock charges an 8% lodging tax. For direct bookings, ask the town how to file it and whether the county’s 2% also applies.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.