Short-Term Rental Rules in Panama City Beach, FL (2026): Permits, Taxes and Limits
Short-term renting is allowed in Panama City Beach but requires adherence to specific regulations. Hosts need a Vacation Rental Certificate to legally rent their properties, and compliance with safety, signage, and operational rules is crucial [2][4].
Do you need a permit or license?
A Vacation Rental Certificate is mandatory to rent any residential dwelling unit as a vacation rental in Panama City Beach [2][4]. Each property must have its own certificate, which must be renewed annually [2]. Initial applications for a Certificate are due by December 31, 2023, and renewal applications are due by October 1 of each year [4].
Taxes
Hosts must collect and remit a total of 13% tax on rental income, which includes a 7% state tax, a 5% Bay County Tourist Development Tax, and a 1% business tax to the City [3]. The City requires monthly remittance of the business tax [3].
Limits and restrictions
The maximum occupancy for one- and two-family dwellings is 150 square feet per person, while for other properties, it is 200 square feet per person, which can be reduced to 150 square feet if specific safety requirements are met [4]. Every unit must also meet posting requirements for safety and emergency information, including contact details for the rental responsible party and occupancy limits [2][4].
Penalties
Violations of the rules can result in penalties: $500 for a first offense and $1,000 for further offenses, with possible certificate revocation for repeated violations within a 12-month period [2]. A "no show" or "lock out" fee for missed inspection appointments is set at $100 [2].
How to apply
To apply for a new Vacation Rental Certificate or renew an existing one, hosts must create an account in the Panama City Beach STR Portal and follow the instructed steps [2]. Required documents include a notarized Vacation Rental Registration Affidavit, proof of DBPR licensing, proof of registration with the Bay County TDC/ TDT, and a Business Tax Receipt [2]. Fees for new applications are $250, while re-registration costs $150, with a $75 fee for any required re-inspections [2].
At a glance
| Topic | What the rules say |
|---|---|
| Certificate Requirement | Mandatory for all rentals [2] |
| Renewals Due Date | October 1 annually [4] |
| Maximum Occupancy | 150-200 square feet/person [4] |
| Initial Application Fee | $250 [2] |
| Penalty for No Shows | $100 fee [2] |
FAQ
What happens if I miss my inspection appointment?
A missed inspection results in a $100 'no show' fee [2].
How is maximum occupancy calculated?
Occupancy is based on square footage: 150 sq ft per person for houses, and 200 sq ft for other rentals, reducible to 150 sq ft with compliance [4].
What are the late fees for renewal applications?
Late fees range from $25 to $100, depending on days past the due date [2].
Running a rental in Panama City Beach
Permits, taxes and stays are easier to keep straight in one place. Rentology runs short, mid and long-term rentals in one system.
Sources
- ORDINANCE 1632 (official)
- Short-Term Rentals | Panama City Beach, FL (official)
- Microsoft Word - How To Start STR (official)
- Panama City Beach, FL Code of Ordinances
Last checked: October 13, 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.