Short-Term Rental Laws in Denver, CO (2026)
Short-term rentals (stays of 1-29 nights) are legal in Denver only in the host's primary residence, and every host must hold a Short-Term Rental License from the Department of Excise and Licenses ($50 application fee plus $100 annual license fee, renewed each year). The primary-residence rule is the biggest restriction: a host can hold only one license, investor/second-home STRs are prohibited, and booking platforms are barred from processing reservations for unlicensed properties. Hosts must also carry a Lodger's Tax account (10.75% tax) and verify at least $1 million in liability coverage. Always confirm current requirements with the city before operating.
Denver STR rules at a glance
| Legal status | Primary residence only |
|---|---|
| Permit required | Yes |
| Permit name | Short-Term Rental License (Denver Department of Excise and Licenses) |
| Permit fee | $150 |
| Renewal | Annual |
| Owner occupancy required | Yes |
| Primary residence only | Yes |
| Max units per owner | 1 |
| Total occupancy taxes | ~13.65% of gross revenue |
| Insurance | Hosts must verify that the hosting platform (e.g., Airbnb, VRBO) provides liability insurance coverage of at least $1 million, or obtain their own equivalent liability insurance. |
| Enforcement | Enforced by the Department of Excise and Licenses. Advertisements must display the license number, and since February 1, 2021 (CB20-1229) booking platforms are prohibited from processing transactions for unlicensed properties and can be fined. The city may deny, suspend, or revoke licenses when a property is found not to be the applicant's primary residence or adversely affects public health, safety, or welfare; Denver has revoked or forced surrender of numerous licenses over primary-residence violations, and hosts have faced criminal charges for falsely attesting primary residence. |
| Current rules effective | 2021-02-01 |
What will guests pay in taxes on a Denver stay?
Itemized occupancy taxes for Denver, CO — enter your nightly rate to see the real cost breakdown.
Denver occupancy tax calculator
| Gross rent | $450.00 |
| Denver Lodger's Tax (10.75%)· collection varies | $48.38 |
| Colorado state sales tax on lodging (2.9%)· collection varies | $13.05 |
| Total tax (13.65%) | $61.43 |
| Guest pays | $511.43 |
Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.
Permits & licensing
Denver requires Short-Term Rental License (Denver Department of Excise and Licenses) to operate a short-term rental — the fee is $150, renewed annual.
Initial cost is $150 total: $50 application fee plus $100 license fee. Annual renewal is $100, with late penalties of 20% during the first 30 days after expiration and 50% for days 31-90. Hosts must also register a Lodger's Tax account with Denver's Treasury Division (eBiz Tax Center) and pay the city's business occupational privilege tax (about $48/year per the city FAQ).
Zoning & location rules
Under the Denver Zoning Code, short-term rentals are allowed as an accessory use wherever residential uses are allowed, but only in the host's primary residence. An accessory dwelling unit (ADU) may be short-term rented if the host lives on the property in the primary structure. Only one rental contract/party is allowed at a time, and the license covers stays of 1-29 nights (30+ night rentals fall under Denver's separate residential rental property license). Renters (non-owners) may host with a signed possession of property certificate from the owner.
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| Denver Lodger's TaxApplies to stays under 30 consecutive days, on the total amount charged including cleaning and guest fees. A lodging platform that processes payment and appears as merchant of record is the 'vendor' responsible for collecting and remitting (Airbnb and Vrbo collect and remit for Denver hosts); for direct bookings or non-vendor platforms the host must collect and remit on their own lodger's tax returns. Hosts must hold a lodger's tax account regardless (renewed every odd year). | 10.75% | varies |
| Colorado state sales tax on lodgingState sales tax (plus applicable special district taxes, remitted separately to the Colorado Department of Revenue). Marketplace platforms such as Airbnb collect and remit state-administered taxes for bookings made through them; hosts remit for direct bookings. | 2.9% | varies |
Enforcement & penalties
Enforced by the Department of Excise and Licenses. Advertisements must display the license number, and since February 1, 2021 (CB20-1229) booking platforms are prohibited from processing transactions for unlicensed properties and can be fined. The city may deny, suspend, or revoke licenses when a property is found not to be the applicant's primary residence or adversely affects public health, safety, or welfare; Denver has revoked or forced surrender of numerous licenses over primary-residence violations, and hosts have faced criminal charges for falsely attesting primary residence.
Fines can be up to $999 per incident, and hosts who do not follow the rules can be fined or lose their license (suspension or revocation). Booking platforms face fines for processing unlicensed rentals. Late license renewal incurs a 20% penalty in the first 30 days and 50% for days 31-90 after expiration.
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Frequently asked questions
›Is Airbnb legal in Denver?
Airbnb is legal in Denver, CO, only for your primary residence — dedicated investment properties generally cannot be short-term rentals. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Denver?
Yes. Denver requires a Short-Term Rental License (Denver Department of Excise and Licenses) to operate a short-term rental, which costs $150 and must be renewed every year. Always confirm current requirements with the city before operating.
›How much does a Denver short-term rental permit cost?
The Short-Term Rental License (Denver Department of Excise and Licenses) costs $150 (annual renewal). Initial cost is $150 total: $50 application fee plus $100 license fee. Annual renewal is $100, with late penalties of 20% during the first 30 days after expiration and 50% for days 31-90. Hosts must also register a Lodger's Tax account with Denver's Treasury Division (eBiz Tax Center) and pay the city's business occupational privilege tax (about $48/year per the city FAQ).
›Can I Airbnb a non-primary residence in Denver?
Generally no. Denver limits short-term rentals to the operator's primary residence, which rules out running a dedicated investment property as a short-term rental in most cases. Always confirm current requirements with the city before operating.
›What taxes do short-term rental hosts pay in Denver?
Hosts in Denver are subject to: Denver Lodger's Tax (10.75%), Colorado state sales tax on lodging (2.9%) — roughly 13.65% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.
›What happens if I operate a short-term rental illegally in Denver?
Fines can be up to $999 per incident, and hosts who do not follow the rules can be fined or lose their license (suspension or revocation). Booking platforms face fines for processing unlicensed rentals. Late license renewal incurs a 20% penalty in the first 30 days and 50% for days 31-90 after expiration. Enforced by the Department of Excise and Licenses. Advertisements must display the license number, and since February 1, 2021 (CB20-1229) booking platforms are prohibited from processing transactions for unlicensed properties and can be fined. The city may deny, suspend, or revoke licenses when a property is found not to be the applicant's primary residence or adversely affects public health, safety, or welfare; Denver has revoked or forced surrender of numerous licenses over primary-residence violations, and hosts have faced criminal charges for falsely attesting primary residence.
STR rules change without warning.
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Related
Nearby covered cities
- Sedona, AZPermit required
- Scottsdale, AZPermit required
- Phoenix, AZPermit required
- Broken Bow, OKRestricted
- Palm Springs, CARestricted
Sources
- Short-term rentals - City and County of Denver (Business Licensing)retrieved July 9, 2026
- New short-term rental application - City and County of Denverretrieved July 9, 2026
- Renewal short-term rental application - City and County of Denverretrieved July 9, 2026
- Short-term rentals laws, rules, and regulations - City and County of Denverretrieved July 9, 2026
- Short-term rental frequently asked questions - City and County of Denverretrieved July 9, 2026
- City and County of Denver Tax Guide Topic No. 52 - Lodger's Taxretrieved July 9, 2026
- Occupancy tax collection and remittance by Airbnb in Colorado - Airbnb Help Centerretrieved July 9, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Denver and a qualified professional before operating.