Alabama STR Regulations
Alabama State Lodging Tax: 4 - 5%
State lodging tax applies to accommodations rented for fewer than 180 consecutive days. The state lodging tax rate is 4% in most of Alabama and 5% in the Alabama Mountain Lakes region of North Alabama, which includes 16 counties such as Madison, Marshall, and DeKalb. The tax generally applies to the total amount charged to the guest, including applicable fees such as cleaning and pet fees.
Business Privilege Tax
STR businesses organized as an LLC, corporation, or other qualifying limited-liability entity may be subject to Alabama’s Business Privilege Tax. For taxable years beginning on or after January 1, 2024, entities whose calculated business privilege tax is $100 or less are fully exempt from the tax and are not required to file a Business Privilege Tax return.
Registration & Filing
Hosts must register through the My Alabama Taxes (MAT) portal and generally file lodging tax returns by the 20th of each month. Depending on the amount of tax owed, some hosts may qualify for quarterly, semi-annual, or annual filing. Many county and municipal lodging taxes administered by the state can be reported and paid through the same return. A discount may be available for taxes that are filed and paid on time.
Helpful STR Tax Links
Marketplace Collection: Airbnb has collected Alabama state lodging tax (plus state-administered local taxes) since 2016. Under the Alabama Tourism Tax Protection Act (Act 2024-334), booking platforms are required to collect and remit state lodging taxes on transactions they process beginning January 1, 2025, and platforms and owners face annual property-reporting requirements. Important caveat: platforms do not collect every self-administered or Avenu-administered local tax — hosts with direct bookings, or properties in cities like Gulf Shores, Orange Beach, Foley, Alexander City, Guntersville, or Mentone, remain responsible for registering and remitting those local taxes themselves.
Have tax questions? Get more helpful resources in ALSTRA member portal.
ALABAMA Vacation Rental Rules & Regulations
We’ve compiled links to short-term rental regulations for cities and towns across Alabama. Because this list isn’t exhaustive and local rules can change, we recommend confirming details with your municipality before making decisions.
GETTING STARTED?
Are you new to short-term renting or considering turning a property into a vacation rental? Before you create a listing or welcome your first guest, take some time to understand the requirements that may apply to your property.
Before You Get Started
- Check your local regulations. Short-term rental rules can vary by city and county. Confirm whether your community requires a permit, business license, inspection, or other approval.
- Review zoning and property restrictions. Make sure short-term rentals are allowed at your property, including any HOA, condo association, lease, or deed restrictions that may apply.
- Understand your tax responsibilities. Short-term rentals may be subject to state and local lodging taxes. While some booking platforms collect certain taxes on your behalf, you may still have registration, reporting, or payment responsibilities.
- Make sure you’re properly insured. A standard homeowners policy may not provide the coverage you need when renting your property to guests. Talk with your insurance provider about appropriate short-term rental coverage.
- Prepare to operate responsibly. Establish clear house rules and plans for parking, trash, noise, occupancy, safety, and guest communication before you begin hosting.
- Stay informed. Regulations can change. Connecting with Alabama’s short-term rental community can help you stay up to date on requirements, best practices, and issues that could affect your property.
A little homework upfront can save you time, money, and headaches later — and help you start your short-term rental on the right foot.
Additional Questions?
For all questions specific to your property, permit/registration, or taxes, consult the appropriate government authority.
Are regulations heating up?
If vacation rental regulations are taking place in your city or town, OR if you see updated regulations to add to our page, let us know by emailing us.
Member Resources
ALSTRA members get additional support and guidance on regulatory matters inside our members-only portal. There, you can also connect directly with other hosts to learn even more helpful insight and recommendations.
HOW TO BE A GOOD NEIGHBOR
Follow Local Quiet Hours
Review Your City/Town’s Noise Ordinance
Best Practices
- Do not allow parties at your property and watch out for early warning signs
- Use noise monitoring to monitor noise decibel levels
- Use external security cameras to monitor guest traffic
- Inform guests of noise rules and good neighbor expectations in your listing, house rules, and pre-stay communications
Parking limitations and requirements vary by municipality
Citations may be issued for violations
Best Practices
- Do not allow parties at your property and watch out for early warning signs
- Use external security cameras to monitor guest parking
- Inform guests of parking limits, requirements, and availability in your listing, house rules, pre-stay communications, and on-site signage
Review your municipality’s residential waste ordinance
Citations may be issued for violations
Best Practices
- Use external security cameras to monitor trash management
- Inform guests of trash and recycling management procedures in your house manual, on-site signage, and in-stay communications
Being a Great Host and Neighbor
Don't Allow Parties
Respect Quiet Hours + Use Noise Monitoring
Honor Parking Limits
Do Not Allow Any Illegal Activity
Meet your Neighbors and Give them Your information
Maintain Property Exterior
Be an Ambassador to Your Community
Use Exterior Cameras
Connect With ALSTRA Members
Chat with other ALSTRA members in ALSTRA member discussion forums.