LicensedRental

Virginia city rules

Lexington, VA vacation rental rules and taxes

Lexington requires a $50 yearly registration for every short-term rental. In its residential districts the host must live in the home at least 185 days a year and can rent no more than 104 nights, only 45 of them with the host away; commercial districts have no caps. Stays pay 5.3% sales tax plus the city’s 8% lodging tax.

Checked against official sources November 7, 2026
Market
About 140 Airbnb listings
Lexington 139 (AirROI).Source
Registration
$50 a year
Calendar year; renew by January 30 or pay a $50 late fee.Source
Residential districts
Host’s home, 104 nights a year
Live there 185+ days a year; no more than 45 nights with the host away or more than two bedrooms rented.Source
Commercial districts
No owner or night limits
R-LC, C-1, C-2. Non-owner-occupied rentals there need fire sprinklers.Source
Guests
2 adults per bedroom
Taxes
5.3% sales + 8% lodging tax

What to do

  1. Meet with planning staff

    Lexington requires a pre-application meeting before you register. Bring proof that you own the home or hold a lease of at least a year, and, in a residential district, that it’s your primary residence.Source

  2. Register every year

    Register with Planning and Development ($50, nonrefundable). Registrations run January 1 to December 31; renew by January 30. A resident host can register only one unit in the city.Source

    Lexington STR fact sheet →

  3. File the annual tax attestation

    By January 30, file the Commissioner of the Revenue’s attestation saying whether a platform pays all your lodging taxes. If not, file monthly lodging tax returns. You also owe business tangible property tax on the furnishings.Source

  4. 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. Lexington’s lodging tax is 8%. For direct bookings, file with the Commissioner of the Revenue by the 20th of each month.Source

Inspection checklist

What the inspector looks for, from City of Lexington, Virginia’s published checklist.

  • Smoke detector in every sleeping room
  • Carbon monoxide detectorsIf the home has gas heat or gas appliances.Source
  • Second way out of every sleeping roomSuch as a window that opens.Source
  • Fire sprinklersFor non-owner-occupied rentals in commercial districts; talk to the Building Official first.Source

House rules for guests

Parking
1 off-street space per sleeping room
Not required in C-1. No RVs, buses, or trailers on the street.Source
Contact
Answer calls 24/7
Post your (or your designee’s) name and phone number.Source
Principal guest
18 or older
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.