Airbnb Rules in California: Complete 2026 Compliance Guide for Hosts

California is one of the most active short-term rental markets in the U.S. At the same time, rapid growth has driven cities to adopt detailed (and often strict) Airbnb and vacation rental regulations to protect housing availability, neighborhood character and local tax revenue.

This guide explains how to operate a compliant short‑term rental in California, from statewide definitions to city‑specific rules in major markets like Los Angeles, San Diego, San Francisco, San Jose, Palm Springs and more.

What this guide covers:

This compliance guide focuses on legal and regulatory requirements for California short‑term rentals (STRs), including:

• State‑level definition of a short‑term rental and core concepts

• General registration, licensing and tax obligations across California

• Local rules and restrictions in major STR markets (e.g., LA, San Diego, San Francisco, Palm Springs, San Jose, Long Beach, Oakland, etc.)

• Common operational standards: Safety, occupancy, zoning and neighbor impact rules

• Cities with partial restrictions or complete short‑term rental bans

It does not cover marketing strategies, listing optimization or general hosting tips unrelated to legal compliance.

Who this is for:

This guide is designed for:

• Current California Airbnb and vacation rental hosts

• Property owners considering converting homes, condos or rooms into STRs

• Real estate investors evaluating California cities for short-term rental opportunities

• Managers operating multi‑city portfolios who need city‑by‑city rule comparisons

Whether you’re renting a spare room, your primary residence or a dedicated vacation home (where allowed), you’ll find specific regulatory frameworks and city requirements here.

Why this matters:

California cities have progressively tightened enforcement, adding licensing caps, primary residence rules, zoning limits and steep penalties for non‑compliance. Operating without required licenses, taxes or safety measures can result in:

• Hefty fines and penalties

• License revocation or denial of renewals

• Forced cessation of rental operations

• Potential civil or administrative actions

Because regulations differ widely by city, and can change, understanding your local obligations is essential before you list a property or expand your vacation rental portfolio.

Understanding California’s short-term rental framework

Legal definition of STRs

California short‑term rental regulations generally define a vacation rental as a residential dwelling or portion of a dwelling, rented to guests for 30 consecutive days or less. This definition is reflected in California Senate Bill No. 60, Chapter 307, and serves as the baseline for most municipal rules.

Key points:

• Applies to residential properties (homes, units, rooms), not hotels/motels

• Stays must be 30 days or fewer to fall under STR rules

• Commercially operated hotels, motels, bed‑and‑breakfasts and timeshares are typically excluded

• Many cities use “short‑term rental” and “vacation rental” interchangeably but some ban “vacation rentals” by name, so local terminology matters

Before you invest or list, confirm how your city defines STRs, which property types qualify and whether any category (e.g., vacation rentals vs. home‑sharing) is outright prohibited.

Operational rules and compliance standards

Launching an Airbnb or short-term rental business in California requires more than just creating a listing. You must navigate state and local requirements that typically include:

Business registration

• Most cities require you to register a business entity or obtain a general business license.

• Forming an LLC is optional but often recommended for liability protection.

Transient Occupancy Tax (TOT) Certificate

• Almost all California short-term rentals must collect and remit a local TOT on stays under 30 days.

• Many platforms including Airbnb may collect and remit TOT on your behalf, but you’re still responsible for ensuring compliance and often must hold a TOT certificate in your name.

Licensing and permitting

• California does not issue a statewide STR license; regulation is at the city/county level.

• Most municipalities require an STR permit or registration per unit, renewed annually.

Fee payments

Expect application and annual renewal fees, frequently in the hundreds of dollars range, varying by city.

Health and safety compliance

Local codes commonly require:

• Smoke detectors and carbon monoxide detectors

• Fire extinguishers

• Clear emergency information and exit paths

• Maximum occupancy limits and quiet hours

Safety and building compliance

Common requirements include:

• Posted emergency information and clear directions to fire extinguishers and exits

• Local contact person available 24/7 (especially for unhosted rentals)

• Compliance with all building, fire, and housing codes

Zoning compliance

Some cities restrict STRs to certain zoning districts or bar them from particular neighborhoods or building types (e.g., ADUs, multi‑units).

Short‑term rental insurance

While not legally mandated statewide, short-term rental specific insurance is strongly recommended to cover property damage, liability and lost income.

Occupancy and use rules

Frequently seen provisions include:

• Primary residence requirements: Many cities (e.g., Los Angeles, Pasadena, Berkeley, Sunnyvale, San Francisco) require the STR property to be the host’s primary residence for a minimum number of days per year.

• Guest occupancy limits: Often 2 adults per bedroom, capped at around 10 adults per unit, though specifics vary.

• Minimum stay lengths: Some municipalities impose 2‑ or 3‑night minimums or much longer (weeks/months) in certain zones, effectively discouraging STRs.

• Dwelling type restrictions: ADUs, in‑law units, pool houses, garages or certain multi‑unit buildings may be ineligible.

Neighborhood protections

To reduce community impact, many cities regulate:

• Noise (quiet hours, party bans)

• Parking (on‑street limits, guest parking instructions)

• Trash (bin rules, collection day procedures)

Failure to manage guest behavior often triggers complaints and enforcement actions, even when your paperwork is otherwise in order.

Pro Tip: Research both city and county regulations and consult local legal or tax professionals when in doubt.

Licensing process and application requirements

Most California cities require STR operators to register their business to demonstrate legitimacy and compliance with local codes. This is often the first legal step before applying for STR‑specific permits.

Choosing a legal structure

California short-term rental hosts can choose from several entity types:

• Corporation

• Limited Liability Company (LLC)

• Limited Partnership

• General Partnership

• Limited Liability Partnership

• Sole Proprietorship

Many operators favor an LLC because it separates personal and business assets, reducing personal liability if the business is sued or incurs debts. Even hosts renting out their primary residence often use an LLC for this additional protection.

For full details on entity types, hosts are typically directed to the California Secretary of State’s Entity Types page and the State of California Franchise Tax Board for fees and tax structures.

Business setup

To formally establish your short-term rental business in California, you’ll generally need to:

• File Articles of Organization (LLC) or Articles of Incorporation (Corporation) with the California Secretary of State

• Register your business name

• Obtain an Employer Identification Number (EIN) from the IRS

• Secure any required local business licenses and STR permits

Local city and county requirements vary, so always confirm the exact documentation and approvals needed where the property is located.

Licensing requirements

There is no statewide STR license, but most cities and counties require individual permits per unit for legal operation.

While details differ, most jurisdictions follow a similar pattern:

1. Submit an application with:

• Owner/host contact information

• Property address and dwelling type

• Proof of ownership or lease

• Proof of primary residence if required (e.g., LA, SF, Pasadena)

• Proof of TOT registration

2. Pay fees

Initial application and annual renewal fees, often a few hundred dollars per unit.

3. Pass safety inspections

Inspection by fire or building officials, checking safety equipment and code compliance.

Documentation commonly required

Though each city can add its own requirements, hosts frequently must provide:

• Government ID and contact details

• Proof of ownership or lease (plus owner authorization for tenants)

• Proof of primary residence (where applicable)

• Floor plan or bedroom count for occupancy calculations

• Evidence of insurance coverage

• TOT certificate or proof of application

License validity and renewal

• Most STR licenses/permits are valid for one year (some, like San Diego Tier licenses or SF host certificates, may be valid for two years).

• Renewals usually require:

  • Renewal form

  • Updated safety inspection (if required)

  • Renewal fee payment

Operating without a valid license can lead to significant penalties and ordered shutdown of the STR.

Tax obligations and deductions

Operating an STR in California carries obligations at federal, state and local levels.

Federal income tax treatment

The Internal Revenue Service (IRS) treats your STR as a business if:

• You rent the property at least 14 days per year, and

• You personally use the property for no more than 14 days per year or 10% of total rental days (whichever is greater).

If both conditions are met, rental income is taxable and you may claim deductions for allowable expenses.

State income tax

California imposes state income tax on short-term rental earnings, in addition to federal income tax.

Transient Occupancy Tax (TOT)

Most California cities and counties impose a Transient Occupancy Tax (TOT) on STR stays under 30 days.

Key points:

• Applied as a percentage of the nightly rate (often 6–15%)

• Collected from guests and remitted to the city/county

• Rates vary by jurisdiction:

  • San Diego: 10.5%

  • San Francisco: 14%

  • Many other cities fall between 6% and 15%

Many platforms collect and remit TOT automatically in some jurisdictions, but hosts are responsible for ensuring:

• Proper registration for TOT (where required)

• Correct filing and remittance by deadlines

Here’s a concise table version of that section:

Common tax deductions for STR hosts

Because STRs are businesses, California hosts often can deduct:

• Depreciation on the property (potentially optimized via a cost segregation study)

• Property taxes

• Mortgage interest and mortgage insurance premiums

• STR‑specific insurance policies

• Furniture, appliances, and furnishings

• Management fees (e.g., Airbnb host fees, property management)

• Marketing and advertising

• Utilities

• Cleaning, maintenance, and repair costs

• Professional services (legal, accounting, etc.)

• Home office and business travel (where legitimately applicable)

Consult a tax professional to maximize available deductions while staying compliant with IRS and California Franchise Tax Board rules.

City‑by‑City Short‑Term Rental Rules in California

Below is a structured overview of major California STR markets. Always verify with the latest municipal codes before investing or operating as regulations, particularly at the local level, are subject to frequent changes.

San Diego

San Diego regulates short-term rentals under the Short‑Term Residential Occupancy (STRO) Ordinance and Section 5 of the Municipal Code, using a tiered license system:

Tier 1 – Part‑time rentals

• Up to 20 rental days per year

• Host not required to live on‑site

Tier 2 – Home sharing

• Renting rooms while the host lives on‑site

• Host can be away up to 90 days per year for whole‑home rentals

Tier 3 – Whole‑home (outside Mission Beach)

• Entire home rented more than 20 days per year

• Must be outside Mission Beach CPA

• Minimum 2‑night stay

• Must be rented at least 90 days per year to keep the license

• Capped at 1% of total housing units citywide (excluding Mission Beach)

Tier 4 – Whole‑home (Mission Beach)

• Entire home rentals in Mission Beach, more than 20 days per year

• Minimum 2‑night stay

• Capped at 30% of dwelling units in the Mission Beach CPA

Licensing requirements

• One license per tier per host

• Licenses are non‑transferable (even if the property is sold)

• Required for all STRs since July 2022

Application requirements

• License application form

• TOT Certificate number or proof of application

• Proof of Rental Unit Business Tax payment

• Proof of primary residence for Tier 2

Fees

• Application: $25 (Tiers 1 & 2); $75 (Tiers 3 & 4)

• License: $100 (Tier 1); $225 (Tier 2); $1,000 (Tiers 3 & 4)

• Licenses valid for 2 years, with renewal fees required

Operational rules

• Use must remain residential

• Hosts must prevent nuisances and provide a Good Neighbor Policy to guests

• Property must meet California Fire Code standards

• Exterior posting of TOT Certificate number, license number, and contact info

• Ads must list TOT and license numbers

• In‑unit posting on how to report human trafficking

• Compliance with all relevant Municipal Code chapters

Taxes and fees

• TOT: 10.5% of rental income

• Rental Unit Business Tax:

  • $34 annually (up to 12 employees)

  • $125 + $5/employee for larger businesses

Los Angeles

Los Angeles regulates short-term rentals through the Home Sharing Ordinance (CF 14‑1635‑S2), focused on primary residence home‑sharing.

Home sharing registration (HSR)

• All STR hosts must obtain an HSR number.

• Application is online with an $89 fee.

• Approved hosts receive an 8‑digit registration number (HSR##‑######) that must appear in all listings.

• HSR valid for one year and must be renewed annually.

Property eligibility requirements

• Primary residence: The STR must be the host’s primary residence.

• Maximum of 120 rental nights per year under standard home sharing.

• Proof of residency: driver’s license, insurance bill, pay stub, voter registration, etc.

• Renters need a landlord‑signed affidavit approving STR use.

• Properties subject to the Rent Stabilization Ordinance (RSO) (generally pre‑1978 rentals) cannot be used as STRs.

TOT registration

• Hosts must obtain a Transient Occupancy Tax Registration Certificate from the Department of Finance.

• Stays of 30 days or more are exempt but require a TOT Exemption Form.

Extended home sharing (more than 120 nights)

Hosts may exceed 120 nights by obtaining an extended home sharing permit, if they:

• Have held a valid HSR for at least 6 months or have hosted for 60 days

• Notify neighboring occupants by mail

• Have no more than one citation and no prior suspensions/revocations

Fees:

• Standard extended permit: $850

• With discretionary review: $5,660

Long Beach

Long Beach allows both hosted and unhosted STRs and is comparatively flexible, but still requires compliance with Ordinance 20‑0045.

Annual registration

• All STRs must be registered annually.

• Registration fee: $250 per year.

• Registration number must be displayed in all listings.

Property eligibility and documentation

• For primary residences, documentation such as driver’s license, loan documents or voter registration.

• For LLC‑owned non‑primary residences submit a notarized document stating authority to act for the business.

• Tenants must submit a Property Owner Authorization form.

• Approved dwelling types: Single‑family homes, condos, apartments, maids’ quarters, guest houses.

• Ineligible: Pool houses, casitas, garages and similar outbuildings.

Capacity limits

• In multi‑unit buildings:

  • 2–10 units: 1 STR

  • 11–50 units: up to 10% of units

  • 51–100 units: up to 12% of units

  • 101+ units: up to 15% of units

• Maximum 10 adults per unit (or 2 persons per bedroom).

Santa Clara

Santa Clara currently has no specific STR ordinance.

• No dedicated STR permit or licensing scheme (as of the information provided).

• Hosts must pay TOT of 13.5% on short-term rental income.

• Local reports suggest new regulations may be introduced, so operators should monitor for changes.

San Francisco

As Airbnb’s birthplace, San Francisco has some of the strictest short-term rental regulations in California.

Dual registration: Business and host

• Business Registration Certificate (through the Treasurer & Tax Collector) required for anyone earning STR income. Fees depend on gross receipts:

  • < $100,000: $52

  • $100,000–$250,000: $86

• Short‑Term Residential Rental Certificate from the Office of Short Term Rentals is also required.

  • Application fee: $450

  • Certificate valid for two years.

Residency and property rules

• Property must be the host’s primary residence for at least 275 days/year.

• Host must have lived there at least 60 days before applying.

• STRs prohibited in accessory dwelling units (ADUs) such as in‑law apartments, attic conversions, etc.).

• A host may list only one unit in a multi‑unit property.

• Must comply with HOA/tenant rules where applicable.

Insurance and capacity limits

• Minimum $500,000 liability insurance required

  • AirCover may satisfy this if the listing is Airbnb‑exclusive.

• Capacity:

  • No more than five individual renters or five separate beds at one time per host.

  • Rent‑controlled unit hosts cannot charge more in STR rent than their monthly regulated rent.

Recordkeeping and reporting

• Quarterly reports (January, April, July, October) documenting STR activity.

• Maintain records for residency, insurance and code compliance.

• Post safety signage for fire extinguishers and emergency exits.

Taxes

• TOT: 14% on STR stays, remitted annually by January 31.

• TOT must reflect year of occupancy, not year of payment.

• Tourism Improvement District (TID) fee also applies from January 2024 onwards and can be passed to guests.

• Tourism Improvement District  (TID) fees are due annually alongside TOT (including “zero” filings).

San Jose

San Jose regulates STRs as “Transient Occupancy as an Incidental Use to a Residence” (Municipal Code Section 20.80, Part 2.5).

Eligible properties

• Allowed: single‑family, two‑family, multi‑family dwellings, mobile homes

• Prohibited: ADUs (in‑law units)

Occupancy limits

• Host present:

  • Single‑family & mobile homes: Up to 3 occupants

  • Two‑family & multi‑family: 2 occupants per unit

• Host not present:

  • Studio: 2 occupants

  • 1‑bedroom: 3 occupants

  • Multi‑bedroom: 2 occupants per bedroom, maximum 10 occupants

Rental duration caps

• Owner‑occupied properties: Unlimited days when host is on‑site.

• Non‑owner‑occupied properties: Max 180 days per year.

Additional requirements

• Parking must meet city standards.

• Property must comply with housing codes (Chapter 17.20).

• Hosts must retain records for 3 years, including TOT proof and compliance with caps.

Tax

• TOT: 10% on short-term rental income, collected from guests and remitted directly or via platforms like Airbnb.

Registration

• San Jose does not require STR registration, but violations of occupancy or day limits can result in loss of STR privileges.

Palm Springs

Palm Springs regulates short-term rentals via Ordinance No. 1918, with two main categories:

• Vacation Rental: Entire single‑family dwelling rented for 28 days or fewer without the owner present.

• Homeshare: Similar but requires the owner to be present on‑site during the guest stay.

Both require a Vacation Rental Certificate, valid for one year and non‑transferable. 

Short-term rentals are:

• Allowed only as a secondary use of single‑family dwellings

• Prohibited in apartments

• Capped at 20% of residential units per neighborhood

Rental limits by certificate type

• Vacation Rentals: Up to 26 contracts (stays) per year

• Junior Vacation Rentals: up to 6 contracts per year (with reduced fees)

Application requirements

• Owner and listing agent contact information

• 24/7 local contact person

• Property details, beds, and occupancy limits

• Valid business license and TOT registration certificate

• Proof of at least $500,000 liability insurance

• Signed acknowledgment of city regulations and indemnification agreement

• Written confirmation that HOA rules do not prohibit STRs

Fees

• Vacation rental registration:

  • $1,072 (6–26 stays)

  • $642 (up to 6 stays)

• Homeshare registration: $268

• Land Use Permit (estate homes, 5+ bedrooms): $453

• TOT permit: $25

• Additional admin fees for appeals ($911) and property manager changes ($175)

• One owner may hold only one active certificate at a time

Taxes and assessments

• TOT: 11.5% on rental income

• TBID: 1% Tourism Business Improvement District fee, passed on to guests

Common challenges and solutions

Challenge 1: Conflicting city-by-city rules for multi-property hosts

Solution:

Treat each California property as operating under its own rulebook. Create a simple one-page compliance sheet per property listing its city’s STR rules, permits, caps and renewal dates, and keep a basic calendar to track expirations and reporting deadlines so you don’t mix requirements between cities.

Challenge 2: Primary residence and rent control restrictions in LA and SF

Solution:

Before converting or buying a property for STR in Los Angeles or San Francisco, first confirm whether it’s rent-controlled/RSO and whether you can realistically meet the primary residence occupancy requirement; if either fails, do not plan on using that unit as an STR and instead reposition it for long-term or 30+ day stays.

Challenge 3: High and variable TOT rates across California

Solution:

Configure city-specific tax rules in Hostaway for each listing (TOT, tourism district fees, etc.), then integrate or regularly export to QuickBooks so your books reflect the exact tax collected and owed by property, making it much easier to calculate, file and document TOT and related assessments correctly for every California jurisdiction.

Navigating and Succeeding in California’s STR Market

California’s STR market remains lucrative, but success now depends on regulatory fluency as much as hospitality skills.

To position yourself for long‑term success:

1. Confirm your city’s definitions and zoning before acquiring or listing a property.

2. Register your business, obtain all required STR permits and keep licenses current.

3. Implement robust safety, noise, parking and trash protocols to avoid neighbor complaints.

4. Track and pay all taxes and assessments (TOT, TID/TBID, state and federal income taxes).

5. Monitor local council agendas and municipal updates; STR rules can and do change.

By investing the time and resources upfront to understand California’s legal landscape, you can build a compliant, resilient and profitable short‑term rental operation in one of the country’s most dynamic vacation rental markets.

FAQs

What counts as a short-term rental in California?

A short-term rental (STR) in California is generally any residential dwelling, or portion of it, rented to guests for 30 consecutive days or less. Hotels, motels, traditional B&Bs and timeshares are usually excluded and regulated separately.

Do I need a license or permit to operate an Airbnb in California?

Yes, in most cases. While California does not issue a statewide STR license, most cities and counties require a local STR permit or registration for each rental unit, often with annual renewal, inspections and fees.

Do I need to live in the property to run a short-term rental?

It depends on the city. Many major markets like Los Angeles, San Francisco, Pasadena, Sunnyvale and Berkeley require the STR to be your primary residence, often with minimum days you must live there each year. Other cities allow non‑owner‑occupied or whole‑home rentals but may cap the number of rental days or units.

Are short-term rentals banned in any California cities?

Yes. Some cities have effectively banned or heavily restricted STRs in residential zones, including Burbank, Calabasas and Manhattan Beach (residential areas). Others, like Santa Cruz, allow only limited or hosted STRs with strict caps. Always confirm local rules before buying or listing a property.