Virginia city rules
Portsmouth, VA vacation rental rules and taxes
Portsmouth has no short-term rental ordinance yet. City planners say state law lets you rent the home you live in, but most whole-home listings don’t comply, and the city has been drafting rules on registration, occupancy, insurance, and spacing. Stays owe 6% sales tax plus an 8% lodging tax and $3 per room a night.
Checked against official sources November 7, 2026What to do
Ask the Planning Department first
Portsmouth has no short-term rental permit, but it treats rentals by owners who live in the home as allowed and has only cleared a handful of rentals through zoning. Ask Planning whether your rental needs zoning clearance and whether the new rules have passed.Source
Watch for the new ordinance
A draft reported in 2026 would require yearly registration, $300,000 in liability insurance, two guests per bedroom (up to eight), a local contact within 50 miles, a registration number on every listing, and spacing of one rental per 500 feet. The terms could change before a vote.Source
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. For direct bookings, file Portsmouth’s 8% lodging tax plus $3 per room per night with the Commissioner of the Revenue.Source
Sources
- Portsmouth looks to join rest of region with short-term rental regulations (September 17, 2025) · Daily Press
- Portsmouth short-term rental regulation guide · bnbcalc
- Lodging Tax · City of Portsmouth
- Virginia Airbnb market data (active listings) · AirROI
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 Spot something out of date?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.