Rentology Resources

Short-Term Rental Rules in Denver, CO (2026): Permits, Taxes and Limits

Do you need a permit or license?

You need both a Short-Term Rental business license and a Lodger’s Tax license to operate a short-term rental in Denver [2][4]. A short-term rental must be in your primary residence [1][2]. The application fee for the business license is $50, and it requires a $100 annual renewal fee [2]. The Lodger’s Tax license costs $50 for two years [4]. The license is non-transferable [2].

Taxes

The Denver Lodger’s Tax rate is 10.75% on all lodging charges [4]. Additionally, there is a Colorado state-collected sales tax for lodging at 4% [2][4]. Hosts may need to register for the Denver Occupational Privilege Tax, with a rate of $4 per month for each owner [4]. AirBnB, VRBO, and similar platforms may remit taxes on behalf of hosts [4].

Limits and restrictions

Rentals can only occur at the host's primary residence [1][2]. There is no limit on the number of licenses issued or the number of rental nights per year [2]. Rentals must not show external advertisements apart from a small, non-illuminated sign [3].

Penalties

Operating without a license is unlawful after December 31, 2016 [1]. Illegally advertising a short-term rental without a license number displayed can result in penalties [1].

How to apply

Applications are managed by the Department of Excise and Licenses [1][2]. Applicants need to provide a valid Colorado driver’s license or state ID, proof of residency, and, if not the owner, written permission from the property owner [1].

At a glance

Topic What the rules say
Primary residence requirement Must be the operator's primary residence [1][2]
License fees $50 application; $100 annual renewal [2]
Lodger’s Tax rate 10.75% [4]
State sales tax rate 4% [2]
Liability insurance $1,000,000 aggregate or equivalent platform coverage [2]
Safety equipment required Smoke detector, CO detector, fire extinguisher [2]
License is non-transferable Yes [1][2]

FAQ

Can I rent another property for short-term stays in Denver?

The published rules do not state this; ask the city.

What safety equipment is required for short-term rentals?

Each rental must have a functioning smoke detector, carbon monoxide detector, and fire extinguisher [2].

Do I need liability insurance for my short-term rental?

Yes, hosts must maintain at least $1,000,000 in aggregate liability insurance, or use a platform that provides equal or greater coverage [2].

Running a rental in Denver

Permits, taxes and stays are easier to keep straight in one place. Rentology runs short, mid and long-term rentals in one system.

Sources

  1. can only have only one primary residence. (official)
  2. Denver, CO Short-Term Rental Rules (2026) | RuleGrid
  3. DENVER ZONING CODE DETERMINATION – ARE SHORT-TERM RENTALS
  4. Department of Finance

Last checked: October 12, 2026. This page summarizes rules the city, county or state has published. It is not legal advice, and rules change: confirm with the city before you list a property.

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