STR Rule Watch

Short-Term Rental Laws in Key West, FL (2026)

RestrictedRestricted

Key West prohibits all unlicensed transient rental (under 30 days / one calendar month) of residential dwellings; short-term rentals are legal only for properties holding a city transient rental business tax receipt and medallion, and the supply of transient licenses is capped, with transient use confined to a handful of commercial and historic-commercial zoning districts. Unlicensed residential properties may only rent for 29 days or more. Hosts owe 12.5% in combined taxes, and the 5% Monroe County tourist development tax must be remitted by the host directly because Airbnb/Vrbo have no collection agreement with the county.

✓ Last verified July 21, 2026 · 9 official sources

Reviewed by the STR Rule Watch research team against 9 official sources. How we verify data

Key West STR rules at a glance

Key short-term rental facts for Key West
Legal statusRestricted
Permit requiredYes
Permit nameTransient rental business tax receipt with transient medallion license (City of Key West); plus State of Florida DBPR lodging license under Chapter 509, F.S.
Permit fee$34.03
RenewalAnnual
Owner occupancy requiredNo
Primary residence onlyNo
Total occupancy taxes~12.5% of gross revenue
EnforcementLicensing Division and Code Compliance enforce the program; transient rental fee revenue funds a dedicated code-enforcement position.
Current rules effective2022-01-19

What will guests pay in taxes on a Key West stay?

Itemized occupancy taxes for Key West, FL — enter your nightly rate to see the real cost breakdown.

Key West occupancy tax calculator

Gross rent$450.00
Florida transient rental (sales) tax (6%)· usually collected by platform$27.00
Monroe County discretionary sales surtax (1.5%)· usually collected by platform$6.75
Monroe County tourist development tax (5%)· host remits$22.50
Total tax (12.5%)$56.25
Guest pays$506.25

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

Permits & licensing

Key West requires Transient rental business tax receipt with transient medallion license (City of Key West); plus State of Florida DBPR lodging license under Chapter 509, F.S. to operate a short-term rental — the fee is $34.03, renewed annually.

Sec. 66-109 sets the annual business tax at $34.03 per unit for 'Transient residential' rental (transient guesthouse or hotel/motel/timeshare units are $19.54 per unit). In addition, Sec. 122-1371(e)(1) requires an annual inspection and enforcement fee 'established by City Commission Resolution' whose current amount is not published in the code; a transfer of a transient medallion license on sale of the property costs 10% of the annual license tax. A separate Florida DBPR vacation rental license is also required.

Zoning & location rules

Unlicensed transient use of residential dwellings is prohibited citywide (Sec. 122-1371(b)). Transient units and licenses exist only where transient use is an allowed zoning use, and the city's Transient Rental Transfer Location map permits transfers to properties zoned CG, HCT, HRCC-1 and HRCC-3; to HNC-1 and HNC-3 only when no on-site displacement of permanent housing occurs; and to HPRD only as a conditional use. The total number of transient units is capped under the Building Permit Allocation System (BPAS) — a transfer 'shall not cause a net increase of units in the city' — so operating generally requires acquiring an existing license/unit via the Planning Board transfer process (Secs. 122-1336 to 122-1340). The special Truman Annex (HPRD) 26-weeks-per-year nonconforming rental permits under Sec. 122-1372 became void on December 22, 2025.

Taxes

TaxRateWho collects
Florida transient rental (sales) taxState sales tax on rentals of 182 nights or less, remitted to the Florida Department of Revenue. Airbnb and Vrbo collect and remit it for platform bookings; hosts must register with FL DOR and remit for direct bookings.6%platform
Monroe County discretionary sales surtaxLocal option surtax remitted with the state sales tax to FL DOR (Monroe County Tax Collector describes the combined state remittance as 7.5%). Platforms collect for platform bookings; hosts remit on direct bookings.1.5%platform
Monroe County tourist development taxSelf-administered by the Monroe County Tax Collector. The Tax Collector states it has no agreement with Airbnb, Vrbo or other platforms and that platforms do not remit this tax — the homeowner must register and remit it directly.5%host

Enforcement & penalties

Licensing Division and Code Compliance enforce the program; transient rental fee revenue funds a dedicated code-enforcement position. Licensed properties must display a city-issued medallion, post a 24-hour contact person, pass an annual fire marshal inspection, keep a tenant and vehicle registration, and use written leases. Advertising an unpermitted residential dwelling for transient rental is itself unlawful, and brokers/realtors who do so face business tax receipt revocation. The city may bring cases to the code enforcement special master, apply for administrative search warrants, and any Key West citizen may seek injunctive relief. The city publishes a map and address list of licensed transient rental properties so the public can verify listings.

Violation is punishable as a misdemeanor and by a fine of up to $500 per day, per unit, per violation; licenses may be revoked for cause. Late renewal of a transient medallion license incurs a 10% penalty for October plus 5% per additional month, capped at 25% of the annual fee.

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

Getting legal in Key West: 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: Unlicensed transient use of residential dwellings is prohibited citywide (Sec. 122-1371(b)). Confirm your parcel's zoning with the city before applying — the full zoning rules are detailed above.

  2. 2

    Check the covenant layer

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

  3. 3

    Apply for the Transient rental business tax receipt with transient medallion license (City of Key West); plus State of Florida DBPR lodging license under Chapter 509, F.S.

    Budget $34.03, renewed annually. Sec. 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: Monroe County tourist development tax (5%) is 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 annually (budget $34.03 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

    Violation is punishable as a misdemeanor and by a fine of up to $500 per day, per unit, per violation; licenses may be revoked for cause. Late renewal of a transient medallion license incurs a 10% penalty for October plus 5% per additional month, capped at 25% of the annual fee. Full enforcement details and penalties are covered above.

Recent rule changes in Key West

  1. December 22, 2025critical

    Truman Annex 26-week transient rental permits expired

    The 20-year transient rental rights granted to roughly 300 Truman Annex property owners under the 2005 settlement (codified at Sec. 122-1372, 26-weeks-per-year cap) expired. Per the city's notice, 'All transient licenses associated with the affected properties will be placed into inactive status and void on Dec. 22, 2025.' City commissioners declined to extend the arrangement.

    Official source →

  2. June 27, 2024

    Governor vetoed statewide vacation-rental preemption bill (SB 280)

    Florida Gov. DeSantis vetoed SB 280, which would have imposed a statewide vacation-rental registration and platform-regulation regime; the veto left Key West's existing local transient-rental ordinances fully in force.

    Official source →

Frequently asked questions

›Is Airbnb legal in Key West?

Airbnb is legal in Key West, FL, but with significant restrictions — check the zoning and eligibility rules on this page before listing. Always confirm current requirements with the city before operating.

›Do I need a permit for a short-term rental in Key West?

Yes. Key West requires a Transient rental business tax receipt with transient medallion license (City of Key West); plus State of Florida DBPR lodging license under Chapter 509, F.S. to operate a short-term rental, which costs $34.03 and must be renewed annually. Always confirm current requirements with the city before operating.

›How much does a Key West short-term rental permit cost?

The Transient rental business tax receipt with transient medallion license (City of Key West); plus State of Florida DBPR lodging license under Chapter 509, F.S. costs $34.03 (annual renewal). Sec. 66-109 sets the annual business tax at $34.03 per unit for 'Transient residential' rental (transient guesthouse or hotel/motel/timeshare units are $19.54 per unit). In addition, Sec. 122-1371(e)(1) requires an annual inspection and enforcement fee 'established by City Commission Resolution' whose current amount is not published in the code; a transfer of a transient medallion license on sale of the property costs 10% of the annual license tax. A separate Florida DBPR vacation rental license is also required.

›Can I Airbnb a non-primary residence in Key West?

Yes — Key West 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 Key West?

Hosts in Key West are subject to: Florida transient rental (sales) tax (6%), Monroe County discretionary sales surtax (1.5%), Monroe County tourist development tax (5%) — roughly 12.5% 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 Key West?

Partially. Platforms collect Florida transient rental (sales) tax (6%), Monroe County discretionary sales surtax (1.5%), but hosts must register for and remit Monroe County tourist development tax (5%) themselves.

›What happens if I operate a short-term rental illegally in Key West?

Violation is punishable as a misdemeanor and by a fine of up to $500 per day, per unit, per violation; licenses may be revoked for cause. Late renewal of a transient medallion license incurs a 10% penalty for October plus 5% per additional month, capped at 25% of the annual fee. See the enforcement section on this page for full details.

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

The current ordinance took effect on January 19, 2022. See the change timeline on this page for amendments since, and the sources section for the official text.

Key West's STR rules changed 1 time recently.

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

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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 Key West and a qualified professional before operating.

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