LicensedRental

Virginia city rules

Salem, VA vacation rental rules and taxes

Salem’s zoning code lists a “homestay inn” use, allowed by right in its business districts and by special exception in the AG and RMF districts, but no separate short-term rental use. Stays pay 5.3% sales tax plus the city’s 8% lodging tax.

Checked against official sources November 7, 2026
Market
About 30 Airbnb listings
Short-term rental use
None listed
The code lists a “homestay inn,” by right in the RB, DBD, TBD, CBD, and HBD districts and by special exception in AG and RMF.Source
Taxes
5.3% sales + 8% lodging tax
On stays of 29 days or less.Source

We read Salem’s zoning through a secondary publisher and did not read the homestay inn standards. Confirm with the city before you list.

What to do

  1. Ask city zoning which use fits

    Salem’s zoning lists a homestay inn, with extra standards in Article III, but no short-term rental use. Ask the city whether your home and district allow the rental you plan before you list.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. Salem’s 8% lodging tax is due by the last day of the next month; filing online or by the 20th earns a 3% discount. File with the Commissioner of the Revenue.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 Spot something out of date?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.