STR Rule Watch

Short-Term Rental Laws in Rehoboth Beach, DE (2026)

Permit requiredAllowed with permit

Short-term rentals are legal throughout Rehoboth Beach, but every rental property needs an annual Residential Rental License ($50 base fee plus $20 per bedroom over two), a 24/7 local contact person, and must observe occupancy limits of two persons per bedroom plus two. There are no owner-occupancy rules, night caps, or minimum-stay requirements. Hosts owe the city's 7% gross rental tax (remitted by the owner annually) plus Delaware's 4.5% state short-term rental lodging tax, which platforms like Airbnb and Vrbo collect on platform bookings.

✓ Last verified July 21, 2026 · 8 official sources

Reviewed by the STR Rule Watch research team against 8 official sources. How we verify data

Rehoboth Beach STR rules at a glance

Key short-term rental facts for Rehoboth Beach
Legal statusAllowed with permit
Permit requiredYes
Permit nameResidential Rental License
Permit fee$50
RenewalAnnual
Owner occupancy requiredNo
Primary residence onlyNo
Total occupancy taxes~11.5% of gross revenue
EnforcementEnforced by the Building & Licensing Department (302-227-6181 ext. 222) as civil offenses under Chapter 126. New rentals (or those unlicensed for two years) are inspected by the city; licensed rentals submit an annual safety self-certification. The owner must designate a local contact person reachable 24/7 during rental terms who must respond to complaints by telephone or in person when directed by the City Police Department or other City official (Chapter 210 sets no fixed response deadline); failure of the local contact to cooperate is grounds for penalties. The license and occupancy limits must be posted inside the unit. After three or more distinct violations (including noise/disorderly conduct) in a 12-month license period without resolution, the City Manager shall not issue a rental license for the next rental period.
Current rules effective2016-04-04

What will guests pay in taxes on a Rehoboth Beach stay?

Itemized occupancy taxes for Rehoboth Beach, DE — enter your nightly rate to see the real cost breakdown.

Rehoboth Beach occupancy tax calculator

Gross rent$450.00
City of Rehoboth Beach gross receipts rental tax (7%)· host remits$31.50
Delaware state short-term rental lodging tax (4.5%)· collection varies$20.25
Total tax (11.5%)$51.75
Guest pays$501.75

Estimate only. Platform collection varies by listing site and agreement; verify rates with the taxing authorities.

Permits & licensing

Rehoboth Beach requires Residential Rental License to operate a short-term rental — the fee is $50, renewed annual.

Per the city's official application: $50 for each home/condo/apartment with at least one bedroom, plus $20 for each bedroom in excess of two; efficiency apartments (one room and bath) are $41. Example: a 4-bedroom house is $50 + $40 = $90. Several secondary sites claim a $150 annual fee, but that figure does not appear on the city's official application form (posted January 2025).

Zoning & location rules

Rehoboth Beach does not confine short-term rentals to particular zoning districts and has no STR overlay; the Residential Rental Ordinance (Chapter 210) applies citywide to single- and multiple-family dwellings 'of any duration,' reflecting the city's finding that homes have long been used in the resort community for rental purposes. Hotels, motels, inns, tourist homes, rooming/boardinghouses, cabins, and cottages are excluded from Chapter 210 and regulated separately under the Zoning Code (Chapter 270).

Taxes

TaxRateWho collects
City of Rehoboth Beach gross receipts rental taxRaised from 6% to 7% effective for rental agreements entered into on or after April 1, 2024. Owners with rental licenses receive a gross rental tax form from the city each December 1; payment is due February 15. Platforms do not collect this city tax.7%host
Delaware state short-term rental lodging taxApplies to rentals of 31 consecutive nights or less under agreements entered into on or after January 1, 2025 (HS2 for HB 168, signed September 30, 2024). Accommodations intermediaries (Airbnb, Vrbo, listing agents) must collect and remit for bookings they facilitate; owners who book directly must collect and remit themselves. Delaware has no general sales tax, and Sussex County voted 3-2 on December 10, 2024 NOT to impose its authorized 3% county STR lodging tax.4.5%varies

Enforcement & penalties

Enforced by the Building & Licensing Department (302-227-6181 ext. 222) as civil offenses under Chapter 126. New rentals (or those unlicensed for two years) are inspected by the city; licensed rentals submit an annual safety self-certification. The owner must designate a local contact person reachable 24/7 during rental terms who must respond to complaints by telephone or in person when directed by the City Police Department or other City official (Chapter 210 sets no fixed response deadline); failure of the local contact to cooperate is grounds for penalties. The license and occupancy limits must be posted inside the unit. After three or more distinct violations (including noise/disorderly conduct) in a 12-month license period without resolution, the City Manager shall not issue a rental license for the next rental period.

Civil assessment of $250 per violation, with each day the violation remains deemed a separate civil offense; license non-renewal after three or more unresolved distinct violations in a 12-month license period; late-licensing penalties plus interest as set by City Commissioners resolution.

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

Getting legal in Rehoboth Beach: the playbook

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

  1. 1

    Verify your zoning

    Location rules apply: Rehoboth Beach does not confine short-term rentals to particular zoning districts and has no STR overlay; the Residential Rental Ordinance (Chapter 210) applies citywide to single- and multiple-family dwellings 'of any duration,' reflecting the city's finding that homes have long been used in the resort community for rental purposes. Hotels, motels, inns, tourist homes, rooming/boardinghouses, cabins, and cottages are excluded from Chapter 210 and regulated separately under the Zoning Code (Chapter 270). Confirm your parcel's zoning with the city before applying.

  2. 2

    Check the covenant layer

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

  3. 3

    Apply for the Residential Rental License

    Budget $50 (annual renewal). Per the city's official application: $50 for each home/condo/apartment with at least one bedroom, plus $20 for each bedroom in excess of two; efficiency apartments (one room and bath) are $41. Example: a 4-bedroom house is $50 + $40 = $90. Several secondary sites claim a $150 annual fee, but that figure does not appear on the city's official application form (posted January 2025). Apply through the city — the official application page is linked in the sources below.

  4. 4

    Set up tax collection & remittance

    Platforms don't collect everything here: City of Rehoboth Beach gross receipts rental tax (7%), Delaware state short-term rental lodging tax (4.5%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.

  5. 5

    Calendar the renewal before you forget it

    This permit renews annual (budget $50 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.

  6. 6

    Know the cost of getting it wrong

    Civil assessment of $250 per violation, with each day the violation remains deemed a separate civil offense; license non-renewal after three or more unresolved distinct violations in a 12-month license period; late-licensing penalties plus interest as set by City Commissioners resolution. Enforced by the Building & Licensing Department (302-227-6181 ext. 222) as civil offenses under Chapter 126. New rentals (or those unlicensed for two years) are inspected by the city; licensed rentals submit an annual safety self-certification. The owner must designate a local contact person reachable 24/7 during rental terms who must respond to complaints by telephone or in person when directed by the City Police Department or other City official (Chapter 210 sets no fixed response deadline); failure of the local contact to cooperate is grounds for penalties. The license and occupancy limits must be posted inside the unit. After three or more distinct violations (including noise/disorderly conduct) in a 12-month license period without resolution, the City Manager shall not issue a rental license for the next rental period.

Recent rule changes in Rehoboth Beach

  1. January 1, 2025material

    Delaware 4.5% state short-term rental lodging tax takes effect

    HS 2 for HB 168 (signed September 30, 2024) imposes a 4.5% state lodging tax on short-term rentals (31 nights or less) for agreements entered into on or after January 1, 2025. Accommodations intermediaries such as Airbnb and Vrbo must obtain a state license and collect/remit the tax; direct-booking owners must collect and remit themselves.

    Official source →

  2. December 10, 2024

    Sussex County declines 3% county STR lodging tax

    Sussex County Council voted 3-2 against imposing the 3% short-term rental lodging tax authorized by HB 168, so no county STR tax applies (the county's existing 3% hotel lodging tax covers only unincorporated areas, not Rehoboth Beach).

    Official source →

  3. February 16, 2024material

    City rental tax raised from 6% to 7%

    Rehoboth Beach commissioners voted February 16, 2024 to increase the gross receipts rental tax from 6% to 7%, effective for all rental agreements entered into on or after April 1, 2024, to help close a $4.4 million FY2025 budget deficit.

    Official source →

Frequently asked questions

›Is Airbnb legal in Rehoboth Beach?

Yes — Airbnb and other short-term rentals are legal in Rehoboth Beach, DE, but you must obtain a Residential Rental License before operating. Always confirm current requirements with the city before operating.

›Do I need a permit for a short-term rental in Rehoboth Beach?

Yes. Rehoboth Beach requires a Residential Rental License to operate a short-term rental, which costs $50 and must be renewed every year. Always confirm current requirements with the city before operating.

›How much does a Rehoboth Beach short-term rental permit cost?

The Residential Rental License costs $50 (annual renewal). Per the city's official application: $50 for each home/condo/apartment with at least one bedroom, plus $20 for each bedroom in excess of two; efficiency apartments (one room and bath) are $41. Example: a 4-bedroom house is $50 + $40 = $90. Several secondary sites claim a $150 annual fee, but that figure does not appear on the city's official application form (posted January 2025).

›Can I Airbnb a non-primary residence in Rehoboth Beach?

Yes — Rehoboth Beach does not limit short-term rentals to primary residences. Zoning and other restrictions may still apply. Always confirm current requirements with the city before operating.

›What taxes do short-term rental hosts pay in Rehoboth Beach?

Hosts in Rehoboth Beach are subject to: City of Rehoboth Beach gross receipts rental tax (7%), Delaware state short-term rental lodging tax (4.5%) — roughly 11.5% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.

›Does Airbnb collect taxes automatically in Rehoboth Beach?

No — in Rehoboth Beach 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 Rehoboth Beach?

Civil assessment of $250 per violation, with each day the violation remains deemed a separate civil offense; license non-renewal after three or more unresolved distinct violations in a 12-month license period; late-licensing penalties plus interest as set by City Commissioners resolution. Enforced by the Building & Licensing Department (302-227-6181 ext. 222) as civil offenses under Chapter 126. New rentals (or those unlicensed for two years) are inspected by the city; licensed rentals submit an annual safety self-certification. The owner must designate a local contact person reachable 24/7 during rental terms who must respond to complaints by telephone or in person when directed by the City Police Department or other City official (Chapter 210 sets no fixed response deadline); failure of the local contact to cooperate is grounds for penalties. The license and occupancy limits must be posted inside the unit. After three or more distinct violations (including noise/disorderly conduct) in a 12-month license period without resolution, the City Manager shall not issue a rental license for the next rental period.

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

The current ordinance took effect on April 4, 2016. See the change timeline on this page for amendments since, and the sources section for the official text.

Rehoboth Beach's STR rules changed 2 times recently.

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

Watch Rehoboth Beach for changes →

Free monthly digest · same-day alerts from $5/mo · cancel anytime

Related

Nearby covered markets

More resources

Sources

This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Rehoboth Beach and a qualified professional before operating.

Spot an error? Report an issue

Reports go straight into our verification queue. Thank you — corrections make the dataset better for everyone.