STR Rule Watch

Short-Term Rental Laws in Madison, WI (2026)

Primary residence onlyPrimary residence only

Madison allows short-term rentals (legally 'Tourist Rooming Houses') only in the host's primary residence, and requires three approvals before advertising: a Zoning Tourist Rooming House Permit (ZTRHP1) from Building Inspection, a Tourist Rooming House license from Public Health Madison & Dane County, and a City Transient Room Tax Permit. Hosted stays are unlimited, but un-hosted rentals are capped at 30 nights per licensing year (July 1-June 30). Lodging is taxed at 5% Wisconsin sales tax plus 0.5% Dane County sales tax and Madison's 10% municipal room tax.

✓ Last verified July 21, 2026 · 11 official sources

Reviewed by the STR Rule Watch research team against 11 official sources. How we verify data

Madison STR rules at a glance

Key short-term rental facts for Madison
Legal statusPrimary residence only
Permit requiredYes
Permit nameZoning Tourist Rooming House Permit (ZTRHP1)
Permit fee$300
RenewalAnnual
Owner occupancy requiredYes
Primary residence onlyYes
Max units per owner1
Night cap per year30 nights
Minimum stay1 night
Total occupancy taxes~15.5% of gross revenue
EnforcementPermits are enforced by the Zoning section of Building Inspection. A staff home visit of all habitable spaces is required before ZTRHP approval, and PHMDC inspects the unit once every licensing year. Permit holders must file quarterly reports (due Feb 1, May 1, Aug 1, Nov 1) listing advertising sources, guest names, stay dates, and whether the operator was present; missing two quarterly reporting deadlines triggers permit revocation. The permit is non-transferable and only the permit holder may operate the rental.

What will guests pay in taxes on a Madison stay?

Itemized occupancy taxes for Madison, WI — enter your nightly rate to see the real cost breakdown.

Madison occupancy tax calculator

Gross rent$450.00
Wisconsin state sales tax (5%)· collection varies$22.50
Dane County sales and use tax (0.5%)· collection varies$2.25
City of Madison room tax (Transient Room Tax) (10%)· collection varies$45.00
Total tax (15.5%)$69.75
Guest pays$519.75

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

Permits & licensing

Madison requires Zoning Tourist Rooming House Permit (ZTRHP1) to operate a short-term rental — the fee is $300, renewed annual.

$300 one-time non-refundable ZTRHP application fee plus a $100 annual permit fee (paid after approval; permit year July 1-June 30). Separately, the required Public Health Madison & Dane County Tourist Rooming House license costs $941.38 for a new 1-unit license (PHMDC annual fee $337.44 + state fee $41.44 + $562.50 pre-inspection fee; fee schedule effective May 4, 2026), and a City of Madison Transient Room Tax Permit must be obtained from the Treasury.

Zoning & location rules

Madison does not publish a list of zoning districts where STRs are allowed or prohibited; instead the zoning permit (ZTRHP1) ties the use to the operator's dwelling. The STR must be the host's primary dwelling (their home for at least 183 days/year) while operating and for the 12 months before starting, so in practice STRs can exist in any legal dwelling unit citywide that is the operator's primary residence. Operators may be owners or renters whose lease explicitly allows it; condominium units need association approval (form ZTRHP1-C). Max guest occupancy is the lesser of twice the number of legal bedrooms or 12 people (children under 12 not counted). Properties renting only in 7-29 consecutive-night blocks may qualify for different rules through the Zoning office.

Taxes

TaxRateWho collects
Wisconsin state sales taxApplies to lodging furnished for less than one month. Marketplace providers (Airbnb/Vrbo) must collect and remit on sales they facilitate; hosts taking direct bookings must hold a seller's permit and remit themselves (Wisconsin DOR Publication 219).5%varies
Dane County sales and use taxThe 0.5% county sales and use tax applies to taxable lodging in Dane County and is reported on the Wisconsin sales and use tax return; collected by the marketplace for platform bookings, by the host for direct bookings.0.5%varies
City of Madison room tax (Transient Room Tax)Madison imposes a 10% room tax under Wis. Stat. 66.0615 and MGO 4.21 (rate above the 8% cap is allowed because of convention-center debt). Marketplace providers must collect and remit municipal room tax to the city (Form RT-200); hosts with direct bookings must obtain a Transient Room Tax Permit and file/pay quarterly (due Jan 31, Apr 30, Jul 31, Oct 31). Stays of 30+ consecutive days are exempt.10%varies

Enforcement & penalties

Permits are enforced by the Zoning section of Building Inspection. A staff home visit of all habitable spaces is required before ZTRHP approval, and PHMDC inspects the unit once every licensing year. Permit holders must file quarterly reports (due Feb 1, May 1, Aug 1, Nov 1) listing advertising sources, guest names, stay dates, and whether the operator was present; missing two quarterly reporting deadlines triggers permit revocation. The permit is non-transferable and only the permit holder may operate the rental.

Violations are subject to fines of $500-$1,000 per day; after a permit is revoked for violations, fines are doubled. PHMDC separately charges $375 for operating without a health license.

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

Getting legal in Madison: the playbook

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

  1. 1

    Confirm you qualify

    Madison limits short-term rentals to your primary residence — check this threshold before spending anything on applications. Investment properties generally do not qualify.

  2. 2

    Verify your zoning

    Location rules apply: Madison does not publish a list of zoning districts where STRs are allowed or prohibited; instead the zoning permit (ZTRHP1) ties the use to the operator's dwelling. The STR must be the host's primary dwelling (their home for at least 183 days/year) while operating and for the 12 months before starting, so in practice STRs can exist in any legal dwelling unit citywide that is the operator's primary residence. Operators may be owners or renters whose lease explicitly allows it; condominium units need association approval (form ZTRHP1-C). Max guest occupancy is the lesser of twice the number of legal bedrooms or 12 people (children under 12 not counted). Properties renting only in 7-29 consecutive-night blocks may qualify for different rules through the Zoning office. Confirm your parcel's zoning with the city before applying.

  3. 3

    Check the covenant layer

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

  4. 4

    Apply for the Zoning Tourist Rooming House Permit (ZTRHP1)

    Budget $300 (annual renewal). $300 one-time non-refundable ZTRHP application fee plus a $100 annual permit fee (paid after approval; permit year July 1-June 30). Separately, the required Public Health Madison & Dane County Tourist Rooming House license costs $941.38 for a new 1-unit license (PHMDC annual fee $337.44 + state fee $41.44 + $562.50 pre-inspection fee; fee schedule effective May 4, 2026), and a City of Madison Transient Room Tax Permit must be obtained from the Treasury. Apply through the city — the official application page is linked in the sources below.

  5. 5

    Set up tax collection & remittance

    Platforms don't collect everything here: Wisconsin state sales tax (5%), Dane County sales and use tax (0.5%), City of Madison room tax (Transient Room Tax) (10%) are remitted by the host. Register with the taxing authority before your first booking and calendar the filing deadlines.

  6. 6

    Configure your listing to the operating limits

    Set your calendar and listing rules to respect the 30-night annual cap, 1-night minimum stay, 1-unit-per-owner limit — platform delisting and fines in this market typically start with listings that visibly violate these limits.

  7. 7

    Calendar the renewal before you forget it

    This permit renews annual (budget $300 again). Most cities take weeks to process renewals and don't send reminders — our Host plan emails you at 60/30/7 days out.

  8. 8

    Know the cost of getting it wrong

    Violations are subject to fines of $500-$1,000 per day; after a permit is revoked for violations, fines are doubled. PHMDC separately charges $375 for operating without a health license. Permits are enforced by the Zoning section of Building Inspection. A staff home visit of all habitable spaces is required before ZTRHP approval, and PHMDC inspects the unit once every licensing year. Permit holders must file quarterly reports (due Feb 1, May 1, Aug 1, Nov 1) listing advertising sources, guest names, stay dates, and whether the operator was present; missing two quarterly reporting deadlines triggers permit revocation. The permit is non-transferable and only the permit holder may operate the rental.

Recent rule changes in Madison

  1. May 4, 2026

    PHMDC license fee schedule updated

    Public Health Madison & Dane County's General License Fees took effect May 4, 2026: a new 1-unit Tourist Rooming House license now totals $941.38 (agency fee $337.44 + state fee $41.44 + $562.50 pre-inspection fee).

    Official source →

  2. January 25, 2026material

    Updated Wisconsin ATCP 72 lodging rules took effect

    Wisconsin DATCP finalized updates to Wis. Admin. Code ch. ATCP 72 (Hotels, Motels, Tourist Rooming Houses), effective January 25, 2026. This is the state health/safety code that Madison's required PHMDC Tourist Rooming House license enforces, so operational and compliance requirements for Madison STRs changed at the state level.

    Official source →

  3. July 9, 2025material

    Wisconsin appeals court voids a primary-residence STR permit requirement as preempted

    In Wisconsin Realtors Association, Inc. v. City of Neenah (No. 2024AP994, filed July 9, 2025; published as 2025 WI App 49, 25 N.W.3d 663), the Wisconsin Court of Appeals held that a city ordinance prohibiting owners from obtaining an STR permit unless the property is their primary residence logically conflicts with Wis. Stat. 66.1014 ('right to rent' law) and is preempted and void. Madison's ZTRHP regime rests on the same primary-residence requirement; as of 2026-07-20 Madison's official pages still state and enforce that requirement, but its legal enforceability is now in doubt under this published precedent.

    Official source →

Frequently asked questions

›Is Airbnb legal in Madison?

Airbnb is legal in Madison, WI, only for your primary residence — dedicated investment properties generally cannot be short-term rentals. Always confirm current requirements with the city before operating.

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

Yes. Madison requires a Zoning Tourist Rooming House Permit (ZTRHP1) to operate a short-term rental, which costs $300 and must be renewed every year. Always confirm current requirements with the city before operating.

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

The Zoning Tourist Rooming House Permit (ZTRHP1) costs $300 (annual renewal). $300 one-time non-refundable ZTRHP application fee plus a $100 annual permit fee (paid after approval; permit year July 1-June 30). Separately, the required Public Health Madison & Dane County Tourist Rooming House license costs $941.38 for a new 1-unit license (PHMDC annual fee $337.44 + state fee $41.44 + $562.50 pre-inspection fee; fee schedule effective May 4, 2026), and a City of Madison Transient Room Tax Permit must be obtained from the Treasury.

›Can I Airbnb a non-primary residence in Madison?

Generally no. Madison limits short-term rentals to the operator's primary residence, which rules out running a dedicated investment property as a short-term rental in most cases. Always confirm current requirements with the city before operating.

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

Hosts in Madison are subject to: Wisconsin state sales tax (5%), Dane County sales and use tax (0.5%), City of Madison room tax (Transient Room Tax) (10%) — roughly 15.5% total on gross rental revenue. Platforms like Airbnb collect some of these automatically; check each line's collection method on this page.

›How many nights per year can I rent out my home in Madison?

Madison caps short-term rentals at 30 nights per year, with a minimum stay of 1 night. Always confirm current requirements with the city before operating.

›How many short-term rentals can I own in Madison?

Madison caps operators at 1 short-term rental unit, and the unit must be your primary residence. Always confirm current requirements with the city before operating.

›Does Airbnb collect taxes automatically in Madison?

No — in Madison 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 Madison?

Violations are subject to fines of $500-$1,000 per day; after a permit is revoked for violations, fines are doubled. PHMDC separately charges $375 for operating without a health license. Permits are enforced by the Zoning section of Building Inspection. A staff home visit of all habitable spaces is required before ZTRHP approval, and PHMDC inspects the unit once every licensing year. Permit holders must file quarterly reports (due Feb 1, May 1, Aug 1, Nov 1) listing advertising sources, guest names, stay dates, and whether the operator was present; missing two quarterly reporting deadlines triggers permit revocation. The permit is non-transferable and only the permit holder may operate the rental.

Madison's STR rules changed 3 times recently.

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

Watch Madison for changes →

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

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