Kentucky Short-Term Rental Laws by City (2026)
Short-term rental rules in Kentucky 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 Kentucky 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 Kentucky
Kentucky has no statewide short-term-rental registration or permit; the only state-level obligations are tax-related. Since January 1, 2023 the 6% state sales tax and a 1% statewide transient room tax apply to stays under 30 days, and booking platforms (Airbnb, VRBO) are required by statute to collect and remit both the state and local transient room taxes. There is no state preemption law — cities and counties retain full authority to zone, permit, cap, or ban STRs — though preemption bills (SB 110 in 2025, SB 112 in 2026) have been introduced and so far failed to advance.
Full statewide rules: permits, taxes & enforcement
Kentucky has no statewide short-term-rental registration or permit; the only state-level obligations are tax-related. Since January 1, 2023 the 6% state sales tax and a 1% statewide transient room tax apply to stays under 30 days, and booking platforms (Airbnb, VRBO) are required by statute to collect and remit both the state and local transient room taxes. There is no state preemption law — cities and counties retain full authority to zone, permit, cap, or ban STRs — though preemption bills (SB 110 in 2025, SB 112 in 2026) have been introduced and so far failed to advance.
Reviewed by the STR Rule Watch research team against 8 official sources. How we verify data
Kentucky statewide STR rules at a glance
| Legal status | Unregulated |
|---|---|
| Permit required | No |
| Total occupancy taxes | ~7% of gross revenue |
| Enforcement | Tax enforcement is by the Kentucky Department of Revenue; state transient room tax is reported monthly by accommodations providers and facilitators. |
| Current rules effective | 2023-01-01 |
State law & local authority
No statewide zoning rules for STRs and no enacted preemption statute. Local governments currently retain full zoning authority, including conditional use permits, density caps, and bans. 2025 SB 110 and 2026 SB 112 would have created a new section of KRS Chapter 100 prohibiting local conditional-use-permit requirements and density-based restrictions on STRs, but neither advanced out of committee.
State-level taxes
| Tax | Rate | Who collects |
|---|---|---|
| Kentucky state sales taxApplies to the total sales price for accommodations of less than 30 consecutive days, including any local transient room taxes or local assessments in the base. Platforms/facilitators must collect on bookings they arrange; hosts renting directly must register and remit themselves. | 6% | varies |
| Statewide transient room tax (KRS 142.400)1% of rent on occupancies under 30 continuous days, imposed on accommodations providers and on 'any person that facilitates the rental of the accommodations.' Effective 1/1/2023 platforms must report and pay state AND local transient room taxes on total charges including service fees; hosts doing business exclusively through Airbnb or VRBO do not need to maintain a state Transient Room Tax account. Local transient room taxes (rates vary by city/county under KRS 91A) apply in addition and are not summarized here. | 1% | varies |
Enforcement & penalties
Tax enforcement is by the Kentucky Department of Revenue; state transient room tax is reported monthly by accommodations providers and facilitators. There is no statewide STR operational enforcement regime — operational enforcement is entirely local.
Statewide sources
- KRS 142.400 — Statewide transient room tax — Rate — Exclusions from tax (official statute text)retrieved July 20, 2026
- Kentucky Department of Revenue — Transient Room Taxretrieved July 20, 2026
- Kentucky TAXANSWERS — Transient Room Tax (sales tax and facilitator guidance)retrieved July 20, 2026
- Kentucky General Assembly — 2025 SB 110 (AN ACT relating to short-term rentals) bill recordretrieved July 20, 2026
- Kentucky General Assembly — 2026 SB 112 (AN ACT relating to short-term rentals) bill recordretrieved July 20, 2026
- LINK nky — Covington formally opposes short-term rental bill (SB 112 opposition coverage)retrieved July 20, 2026
- WHAS11 — Kentucky housing bill collapses over Airbnb short-term rental fight (2026 SB 9)retrieved July 20, 2026
- Kentucky Lantern — Housing, data center legislation dies on final day of 2026 session (SB 9 / STR preemption)retrieved July 21, 2026
| City | Status | Permit fee | Last verified |
|---|---|---|---|
| Louisville | Restricted | $250 | 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.