Delaware Short-Term Rental Laws by City (2026)
Short-term rental rules in Delaware are set city by city — a property that is legal to rent nightly in one town can be prohibited a few miles away. The table below covers 1 Delaware city (1 human-verified against official sources), with each city's legal status, permit cost, and last-verified date.
Statewide short-term rental rules in Delaware
Delaware has no statewide short-term rental permit and no state land-use restrictions on STRs; the state's only STR framework is a tax regime. Since January 1, 2025, a 4.5% state short-term rental lodging tax (30 Del. C. ch. 62) applies to stays of 31 nights or less, collected by the booking platform ('accommodations intermediary') or by owners who rent directly, who must hold a $25/year accommodations intermediary business license. There is no state preemption law: municipalities keep full zoning power (22 Del. C. § 301) to restrict, license, or ban STRs, and New Castle and Sussex Counties may add a local lodging tax of up to 3% (9 Del. C. § 8112).
Full statewide rules: permits, taxes & enforcement
Delaware has no statewide short-term rental permit and no state land-use restrictions on STRs; the state's only STR framework is a tax regime. Since January 1, 2025, a 4.5% state short-term rental lodging tax (30 Del. C. ch. 62) applies to stays of 31 nights or less, collected by the booking platform ('accommodations intermediary') or by owners who rent directly, who must hold a $25/year accommodations intermediary business license. There is no state preemption law: municipalities keep full zoning power (22 Del. C. § 301) to restrict, license, or ban STRs, and New Castle and Sussex Counties may add a local lodging tax of up to 3% (9 Del. C. § 8112).
Reviewed by the STR Rule Watch research team against 9 official sources. How we verify data
Delaware statewide STR rules at a glance
| Legal status | Unregulated |
|---|---|
| Permit required | No |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~4.5% of gross revenue |
| Enforcement | Enforcement is by the Delaware Division of Revenue as a tax matter. |
| Current rules effective | 2025-01-01 |
State law & local authority
The state imposes no zoning or land-use rules on STRs and does not preempt local regulation. Under 22 Del. C. § 301, incorporated municipalities may regulate the 'location and use of buildings, structures and land,' and Delaware beach towns (e.g., Rehoboth Beach, Dewey Beach, Lewes, Bethany Beach) use this authority to license, tax, and restrict STRs locally. Counties zone unincorporated areas. Hosts must check municipal/county rules; the state framework is tax-only.
State-level taxes
| Tax | Rate | Who collects |
|---|---|---|
| Delaware short-term rental lodging tax (30 Del. C. § 6202)Applies to residential dwelling rentals of no more than 31 consecutive nights, for agreements entered into on or after January 1, 2025. The accommodations intermediary (platform) collects and remits when the booking goes through a platform; owners renting directly must license themselves and collect/remit. Monthly returns due the 15th of the following month via tax.delaware.gov. Exemptions include hotels/motels/tourist homes (taxed under the separate 8% public accommodations regime), campgrounds, and casual direct rentals substantially below market rate totaling no more than 10 nights per year. Delaware has no state or local general sales tax. Local option: New Castle and Sussex Counties may add up to 3% in unincorporated areas (Sussex County Council rejected adopting it in December 2024); municipalities may levy their own lodging/rental taxes. | 4.5% | varies |
Enforcement & penalties
Enforcement is by the Delaware Division of Revenue as a tax matter. State law includes a data-sharing mandate: accommodations intermediaries (including platforms) must provide the State with all data necessary to enforce 30 Del. C. ch. 62, including at minimum the intermediary's identifiers, the address of each rental unit, the number of nights rented per unit, and aggregate rents collected per property.
Under 30 Del. C. § 6204, interest at the rate of 1% per month, or fraction thereof, is charged on short-term rental lodging tax payments made after the prescribed due date. In addition, the Division of Revenue's STR FAQ states that late-filed returns are subject to a penalty of 5% per month plus interest of 0.5% per month from the original due date until paid, with an additional penalty of 1% per month (not to exceed 25%) for failure to pay (consistent with Title 30's general penalty provisions).
Statewide sources
- 30 Del. C. ch. 62 — Short-Term Rental Lodging Tax (Delaware Code Online)retrieved July 20, 2026
- Delaware Division of Revenue — Short-Term Rental FAQsretrieved July 20, 2026
- Delaware Division of Revenue — Tax Tips for Short Term Rental Intermediaries (2025)retrieved July 20, 2026
- HS 2 for HB 168 (152nd General Assembly) — bill text creating the STR lodging taxretrieved July 20, 2026
- 9 Del. C. § 8112 — County lodging tax (local 3% option for New Castle and Sussex Counties)retrieved July 20, 2026
- 22 Del. C. § 301 — Municipal zoning authority (Delaware Code Online)retrieved July 20, 2026
- Delaware News — Division of Revenue Releases Guidance on New Short-term Rental Lodging Tax (Nov 20, 2024)retrieved July 20, 2026
- Delaware Public Media — Sussex County rejects additional tax on short-term rental properties (Dec 11, 2024)retrieved July 20, 2026
- LegiScan — Delaware HB 474 (2025-2026, 153rd General Assembly)retrieved July 20, 2026
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Rehoboth Beach | Permit required | $50 | July 21, 2026 |
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This page is informational only and is not legal, tax, or financial advice. Regulations change frequently — verify current requirements with each jurisdiction before operating. HOA and condo rules may prohibit short-term rentals regardless of city law.