Short-Term Rental Laws in Salem, OR (2026)
Salem allows short-term rentals citywide but requires an annually renewed city license before operating: a Short-Term Rental License for non-owner-occupied or larger operations, or an Accessory Short-Term Rental License for residents renting rooms or their whole home (non-hosted accessory rentals capped at 95 days/year). Non-resident-operated STRs in the main residential zones (RA, RS, NH) also need a Conditional Use Permit, and STRs are prohibited in three-family, four-family, and multifamily dwellings. Guests pay a 9% city Transient Occupancy Tax, a 2% Tourism Promotion Area fee (extended to STRs for stays booked starting May 1, 2026), and Oregon's 1.5% state lodging tax.
Reviewed by the STR Rule Watch research team against 9 official sources. How we verify data
Salem STR rules at a glance
| Legal status | Allowed with permit |
|---|---|
| Permit required | Yes |
| Permit name | Short-Term Rental License |
| Permit fee | $320 |
| Renewal | Annual |
| Owner occupancy required | No |
| Primary residence only | No |
| Total occupancy taxes | ~12.5% of gross revenue |
| Insurance | Yes. Operators must maintain liability insurance covering use of the property as a short-term rental or accessory short-term rental, in effect during the entire license term (SRC 30.1105(e) and SRC 30.1005(f)). Proof of insurance is required with new applications and renewals. |
| Enforcement | The city-issued license number must appear on any advertisement or listing; advertising without a valid license is prohibited. |
| Current rules effective | 2017-06-12 |
What will guests pay in taxes on a Salem stay?
Itemized occupancy taxes for Salem, OR — enter your nightly rate to see the real cost breakdown.
Salem occupancy tax calculator
| Gross rent | $450.00 |
| City of Salem Transient Occupancy Tax (TOT) (9%)· collection varies | $40.50 |
| Salem Tourism Promotion Area (TPA) Fee (2%)· collection varies | $9.00 |
| Oregon State Transient Lodging Tax (1.5%)· collection varies | $6.75 |
| 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
Salem requires Short-Term Rental License to operate a short-term rental — the fee is $320, renewed annually.
FY 2027 fee schedule (adopted by Resolution 2026-18 on June 8, 2026, effective with FY 2027 beginning July 1, 2026): new Short-Term Rental License and Accessory Short-Term Rental License are each $320.00, prorated per SRC 30.025(b). Annual renewal is $186.00 for either type. Caution on prior-year comparisons: the city's published FY 2026 fee schedule listed the standard Short-Term Rental License at $800.00 (renewal $300.00) and only the Accessory Short-Term Rental License at $311.00 (renewal $181.00), while the FY 2027 schedule's own prior-year column shows $311.00/$181.00 for both types — the two official documents conflict, so only the FY 2027 amounts ($320/$186) should be quoted as current. A Conditional Use Permit, where required by zoning, carries separate planning fees.
Zoning & location rules
Both license types are limited by structure type: STRs are allowed only in single-family or condominium dwelling units (accessory STRs also in two-family dwellings and guest houses); they are not allowed in three-family, four-family, or multifamily dwellings, nor in conjunction with ADUs. If the applicant lives in the home (minimum 270 days/year), an Accessory Short-Term Rental License suffices in residential zones RA, RS, NH, FMU (LI Area) and PM — hosted rentals of up to 3 guest rooms have no night limit; whole-home non-hosted rentals are capped at 95 days per calendar year and 10 guests. Renting 4+ guest rooms, exceeding 95 non-hosted days, or operating without living in the home makes it a Short-Term Rental, which requires a Conditional Use Permit plus license in RA, RS, and NH zones, but only a license in multifamily, commercial, mixed-use, and industrial zones (RM-I/II/III, CO, CR, CG, CB, FMU (MI/AU/VC), SWMU, IC, IP, IG).
Taxes
| Tax | Rate | Who collects |
|---|---|---|
| City of Salem Transient Occupancy Tax (TOT)9% of total gross rents including non-refundable charges such as cleaning and pet fees (SRC Chapter 37). The operator collects from guests and remits monthly to the City; transient lodging intermediaries (platforms) that collect payment also remit. Operators may withhold a 5% operator administrative fee from the net TOT due (SRC 37.150). | 9% | varies |
| Salem Tourism Promotion Area (TPA) Fee2% fee on the same taxable rents as the TOT, remitted monthly with the TOT return. Created by Ordinance Bill No. 16-19 (effective Jan 1, 2020) for hotels/motels and intermediary bookings; Ordinance Bill No. 4-26 (approved March 23, 2026) extended it to short-term rentals for stays booked starting May 1, 2026. The 5% operator administrative fee does not apply to the TPA. | 2% | varies |
| Oregon State Transient Lodging Tax1.5% of the amount charged for occupancy, filed quarterly with the Oregon Department of Revenue. Whoever collects payment for the occupancy (the provider/host, or an intermediary such as Airbnb/Vrbo when booked through the platform) is the transient lodging tax collector responsible for collecting and remitting. | 1.5% | varies |
Enforcement & penalties
The city-issued license number must appear on any advertisement or listing; advertising without a valid license is prohibited. Operators must maintain a guest registry available for city inspection and designate a local representative (the operator or a licensed property management company with a public office in the Salem/Keizer UGB). Rentals must pass a safety certification against the Housing Code (SRC Chapter 59) and are physically inspected at least once every five years. Licenses can be suspended or revoked for non-compliance (SRC 30.060, 30.065), and neighborhood associations are notified when licenses are issued.
Operating without a license or violating license standards is an infraction and subject to a civil penalty of up to $2,000.00 per violation, with each day a separate violation (SRC 30.070, 30.075, 30.080). TOT violations carry the same up-to-$2,000-per-violation civil penalty (SRC 37.190(c)), plus delinquency penalties of 10% of tax due, an additional 25% after 30 days delinquent, and 1% interest per month (SRC 37.090).
⚠️ HOA/condo rules may prohibit STRs regardless of city law.
Getting legal in Salem: the playbook
Generated from this market's verified rules — each step traces to the sources at the bottom of this page.
- 1
Verify your zoning
Location rules apply: Both license types are limited by structure type: STRs are allowed only in single-family or condominium dwelling units (accessory STRs also in two-family dwellings and guest houses); they are not allowed in three-family, four-family, or multifamily dwellings, nor in conjunction with ADUs. If the applicant lives in the home (minimum 270 days/year), an Accessory Short-Term Rental License suffices in residential zones RA, RS, NH, FMU (LI Area) and PM — hosted rentals of up to 3 guest rooms have no night limit; whole-home non-hosted rentals are capped at 95 days per calendar year and 10 guests. Confirm your parcel's zoning with the city before applying — the full zoning rules are detailed above.
- 2
Check the covenant layer
HOA/condo rules may prohibit STRs regardless of city law.
- 3
Apply for the Short-Term Rental License
Budget $320, renewed annually. 025(b). Apply through the city — the official application page is linked in the sources below.
- 4
Line up required insurance
Yes. Operators must maintain liability insurance covering use of the property as a short-term rental or accessory short-term rental, in effect during the entire license term (SRC 30.1105(e) and SRC 30.1005(f)). Proof of insurance is required with new applications and renewals.
- 5
Set up tax collection & remittance
Platforms don't collect everything here: City of Salem Transient Occupancy Tax (TOT) (9%), Salem Tourism Promotion Area (TPA) Fee (2%), Oregon State Transient Lodging Tax (1.5%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.
- 6
Calendar the renewal before you forget it
This permit renews annually (budget $320 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.
- 7
Know the cost of getting it wrong
080). 090). Full enforcement details and penalties are covered above.
Recent rule changes in Salem
July 1, 2026
FY 2027 fee schedule raises STR license fees
The FY 2027 City of Salem Fee Schedule (Resolution 2026-18) raised the Short-Term Rental License and Accessory Short-Term Rental License fee from $311 to $320 and the renewal fee from $181 to $186.
Official source →July 1, 2026
FY 2027 fee schedule sets both STR license types at $320/$186
The FY 2027 City of Salem Fee Schedule (Resolution 2026-18, adopted June 8, 2026) sets the Short-Term Rental License and Accessory Short-Term Rental License at $320 each with a $186 renewal. For the Accessory license this is an increase from the FY 2026 $311/$181; for the standard Short-Term Rental License the city's published FY 2026 schedule had listed $800/$300, which the FY 2027 document's prior-year column ($311/$181) contradicts.
Official source →March 23, 2026material
Short-term rentals added to Tourism Promotion Area (2% fee)
Salem City Council approved Ordinance Bill No. 4-26 including short-term rentals in the Tourism Promotion Area. STRs must collect and remit the 2% TPA fee (on the same taxable rents as the TOT) for stays booked starting May 1, 2026, raising the combined local lodging levy on STR stays to 11% plus the 1.5% state tax.
Official source →
Frequently asked questions
›Is Airbnb legal in Salem?
Yes — Airbnb and other short-term rentals are legal in Salem, OR, but you must obtain a Short-Term Rental License before operating. Always confirm current requirements with the city before operating.
›Do I need a permit for a short-term rental in Salem?
Yes. Salem requires a Short-Term Rental License to operate a short-term rental, which costs $320 and must be renewed annually. Always confirm current requirements with the city before operating.
›How much does a Salem short-term rental permit cost?
The Short-Term Rental License costs $320 (annual renewal). FY 2027 fee schedule (adopted by Resolution 2026-18 on June 8, 2026, effective with FY 2027 beginning July 1, 2026): new Short-Term Rental License and Accessory Short-Term Rental License are each $320.00, prorated per SRC 30.025(b). Annual renewal is $186.00 for either type. Caution on prior-year comparisons: the city's published FY 2026 fee schedule listed the standard Short-Term Rental License at $800.00 (renewal $300.00) and only the Accessory Short-Term Rental License at $311.00 (renewal $181.00), while the FY 2027 schedule's own prior-year column shows $311.00/$181.00 for both types — the two official documents conflict, so only the FY 2027 amounts ($320/$186) should be quoted as current. A Conditional Use Permit, where required by zoning, carries separate planning fees.
›Can I Airbnb a non-primary residence in Salem?
Yes — Salem 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 Salem?
Hosts in Salem are subject to: City of Salem Transient Occupancy Tax (TOT) (9%), Salem Tourism Promotion Area (TPA) Fee (2%), Oregon State Transient Lodging Tax (1.5%) — 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.
›Do I need insurance to run a short-term rental in Salem?
Yes. Operators must maintain liability insurance covering use of the property as a short-term rental or accessory short-term rental, in effect during the entire license term (SRC 30.1105(e) and SRC 30.1005(f)). Proof of insurance is required with new applications and renewals. Always confirm current requirements with the city before operating.
›Does Airbnb collect taxes automatically in Salem?
No — in Salem 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 Salem?
080). 090). See the enforcement section on this page for full details.
›When did Salem's current short-term rental rules take effect?
The current ordinance took effect on June 12, 2017. See the change timeline on this page for amendments since, and the sources section for the official text.
Salem's STR rules changed 3 times recently.
Get an email the moment Salem changes its short-term rental rules — plus renewal reminders before your permit expires.
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Related
Nearby covered markets
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More resources
- How to get a short-term rental permit in Salem
- Salem short-term rental taxes explained
- Can I Airbnb in Salem?
- All Oregon STR laws by city
- Occupancy tax calculator
- Compare STR permit costs across cities
- Salem ranks among most expensive str permit cities
- STR city rankings: strictest, cheapest permits & more
- What is transient occupancy tax?
- Best STR compliance tools, compared
- Latest STR rule changes nationwide
Sources
- Short-Term Rental License | City of Salem, Oregonretrieved July 20, 2026
- What is the Transient Occupancy Tax? | City of Salem, Oregonretrieved July 20, 2026
- Pay Transient Occupancy Tax and Tourism Promotion Area Fee | City of Salem, Oregonretrieved July 20, 2026
- City of Salem Fee Schedule FY 2027 (cityofsalemfeesFY27.pdf)retrieved July 20, 2026
- Salem Revised Code Chapter 30 — Licenses (SRC 30.1000–30.1110, 30.060–30.080)retrieved July 20, 2026
- Salem Revised Code Chapter 37 — Transient Occupancy Taxretrieved July 20, 2026
- Oregon Department of Revenue — Transient Lodging Taxretrieved July 20, 2026
- Salem Legistar File 26-184 — Resolution No. 2026-18, Exhibit A (FY 2027 Fee Schedule), adopted 2026-06-08retrieved July 21, 2026
- City of Salem Fee Schedule FY 2026 (archived; shows STR License $800 / Renewal $300, Accessory $311/$181)retrieved July 21, 2026
This page is informational only and is not legal, tax, or financial advice. Rules change and enforcement varies — verify current requirements with Salem and a qualified professional before operating.