What should Troy hosts know about combined tax rate is 12%?

Combined tax rate is 12%, which is higher than standard sales tax.

What zoning rules apply to STRs in Troy?

Accessory structures (like sheds or detached garages) are explicitly prohibited from human habitation in the zoning code.

What violations should Troy hosts avoid?

Business licenses must be renewed annually before January 31st to avoid a 15% late penalty.

What should Troy hosts know about stays 180 days or longer?

Stays 180 days or longer are exempt from lodging tax.

Troy, AL Short-Term Rental Regulations: A Complete Guide

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Regulation details

Sourced from official code

Eligibility7 rules

Troy allows tenants to host STRs. Requirements: Requires owner's consent and a valid business license in the tenant's name.
Troy allows STRs in the following property types: Single-family homes, Apartments, Condos, Townhouses.
Troy: You can have a co-host or property manager help manage your listing.

Requirements9 rules

Troy STR warning: Combined tax rate is 12%, which is higher than standard sales tax.

Application process7 rules

Step-by-step guide to get an STR permit in Troy: Step 1: Register with the Alabama Department of Revenue - Obtain a State Lodging Tax account through the My Alabama Taxes (MAT) portal to ensure you can properly report and remit taxes. Documents needed: Federal Tax ID (EIN) or SSN, Property location details. Estimated time: 3-5 days. More info: https://myalabamataxes.alabama.gov/ Step 2: Apply for City Business License - Submit a Municipal Business License Application to the City of Troy Licensing Department. You must provide a sworn statement of expected gross receipts. Documents needed: Municipal Business License Application, Photo ID, State tax account number. Estimated time: 1 week. Cost: 112. More info: https://www.troyal.gov/departments/license_and_inspection/forms_and_ordinances/index.php Step 3: File Monthly Tax Returns - Each month, file a Monthly Lodging Tax Return with the city to report gross receipts and pay the 4% city tax, in addition to state and county filings. Documents needed: Monthly Lodging Tax Return Form. Estimated time: Ongoing. More info: https://www.troyal.gov/departments/license_and_inspection/forms_and_ordinances/index.php

Fees & costs1 rule

Troy charges a registration fee of $112 (annual).

Taxes4 rules

Pike County charges a Pike County Lodging Tax of 0.04%. Platforms like Airbnb collect and remit this tax.
Troy charges a Municipal Lodging Tax of 0.04%. This applies to stays under 180 days. Platforms like Airbnb collect and remit this tax. Note: Major platforms collect state and local taxes, but the host remains ultimately responsible for reporting.

Limits & restrictions2 rules

Troy enforces quiet hours: 10pm-7am.
Troy limits stays to a maximum of 179 nights.

Safety requirements1 rule

Troy requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, Compliance with International Building Code (IBC) and Fire Code.

Penalties3 rules

Troy: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
Troy enforces the following penalties for STR violations: First offense: 15% late penalty. Second offense: 30% late penalty. Third offense: Potential license revocation. Permit may be revoked for violations.

Exemptions3 rules

Troy exempts the following from STR regulations: long-term rentals (30+ days), extended stays.
Troy: Stays 180 days or longer are exempt from lodging tax.
Troy: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

Troy

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Frequently asked questions

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Summary

Restriction level

Why this classification

In plain English

At a glance

4 things hosts often miss

Regulation details

How to get permitted

Upgrade to Pro

Frequently asked questions

1Do I need a permit for short-term rentals in Troy?

2What is the TOT tax rate in Troy?

3Are there rental night limits in Troy?

4What are the penalties for non-compliance in Troy?

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