STR Rule Watch

Short-Term Rental Laws in Denver, CO (2026)

Primary residence onlyPrimary residence only

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.

✓ Last verified July 10, 2026 · 7 official sources

Reviewed by the STR Rule Watch research team against 7 official sources. How we verify data

Denver STR rules at a glance

Key short-term rental facts for Denver
Legal statusPrimary residence only
Permit requiredYes
Permit nameShort-Term Rental License (Denver Department of Excise and Licenses)
Permit fee$150
RenewalAnnual
Owner occupancy requiredYes
Primary residence onlyYes
Max units per owner1
Total occupancy taxes~13.65% of gross revenue
InsuranceHosts 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.
EnforcementEnforced by the Department of Excise and Licenses.
Current rules effective2021-02-01

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 annually.

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

TaxRateWho 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.

Getting legal in Denver: the playbook

Generated from this market's verified rules — each step traces to the sources at the bottom of this page.

  1. 1

    Confirm you qualify

    Denver limits short-term rentals to your primary residence — check this threshold before spending anything on applications. Investment properties generally do not qualify.

  2. 2

    Verify your zoning

    Location rules apply: 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. Confirm your parcel's zoning with the city before applying — the full zoning rules are detailed above.

  3. 3

    Check the covenant layer

    HOA/condo rules may prohibit STRs regardless of city law.

  4. 4

    Apply for the Short-Term Rental License (Denver Department of Excise and Licenses)

    Budget $150, renewed annually. Initial cost is $150 total: $50 application fee plus $100 license fee. Apply through the city — the official application page is linked in the sources below.

  5. 5

    Line up required 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.

  6. 6

    Set up tax collection & remittance

    Platforms don't collect everything here: Denver Lodger's Tax (10.75%), Colorado state sales tax on lodging (2.9%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.

  7. 7

    Configure your listing to the operating limits

    Set your calendar and listing rules to respect the 1-unit-per-owner limit — platform delisting and fines in this market typically start with listings that visibly violate these limits.

  8. 8

    Calendar the renewal before you forget it

    This permit renews annually (budget $150 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.

  9. 9

    Know the cost of getting it wrong

    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. Full enforcement details and penalties are covered above.

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 annually. 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.

›How many short-term rentals can I own in Denver?

Denver caps operators at 1 short-term rental unit, and the unit must be your primary residence. Always confirm current requirements with the city before operating.

›Do I need insurance to run a short-term rental in Denver?

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. Always confirm current requirements with the city before operating.

›Does Airbnb collect taxes automatically in Denver?

No — in Denver hosts are responsible for registering, collecting, and remitting the listed occupancy taxes themselves. Always confirm current requirements with the city before operating.

›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. See the enforcement section on this page for full details.

›When did Denver's current short-term rental rules take effect?

The current ordinance took effect on February 1, 2021. See the change timeline on this page for amendments since, and the sources section for the official text.

STR rules change without warning.

Get an email the moment Denver changes its short-term rental rules — plus renewal reminders before your permit expires.

Watch Denver for changes →

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Sources

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.

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