What zoning rules apply to STRs in Palo Alto?

Short-term rentals of an entire home (unhosted) are effectively prohibited in residential zones.

What should Palo Alto hosts know about the 15.5% transient occupancy tax?

The 15.5% Transient Occupancy Tax is among the highest in California.

What should Palo Alto hosts know about adus (granny flats) cannot be?

ADUs (granny flats) cannot be used as short-term rentals.

What should Palo Alto hosts know about hosted stays are strictly capped?

Hosted stays are strictly capped at 90 days per year.

Short-Term Rental Laws in Palo Alto, CA

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Verified: Feb 5, 2026

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Summary

Palo Alto restricts short-term rentals to primary residences with a host present, capped at 90 nights per year, and requires a 15.5% transient occupancy tax.

Restriction Level

🚫

Prohibited

Score: 100 (lenient)

Why this classification:

•Primary residence required
•Owner-occupied required
•Host presence required (hosted-only)
•Moderate night cap: 90 nights/year
•Limited to 1 property per owner
•Tenants cannot host
•Permit required
•Reporting required

In Plain English

You may only rent out a portion of your home on a short-term basis (less than 30 days) if you are living in the home during the guest's stay. These hosted rentals are limited to 90 days per calendar year, and you must register for a business license and pay a 15.5% hotel tax to the city.

At a Glance

Permit Required

Night Limit

90/year

Primary Residence

Required

Total Tax Rate

0.2%

Permit Fee

$50

4 Things Hosts Often Miss

Regulation Details

Eligibility(8)

•Palo Alto allows STRs in the following property types: Single Family Home (Hosted), Condo (Hosted).
•Palo Alto allows STRs in the following zones: CN (Neighborhood Commercial), CC (Community Commercial), CS (Service Commercial).
•Palo Alto requires the host to be present during STR stays (hosted rentals only).

Requirements(7)

•Palo Alto requires STR registration. Apply at: https://www.paloalto.gov/Departments/Administrative-Services/Treasury-Revenue/Transient-Occupancy-Tax-TOT Renewal: annual. Reporting is required.
•Palo Alto requires liability insurance for STR hosts. Minimum coverage: 1,000,000.
•Palo Alto STR warning: Short-term rentals of an entire home (unhosted) are effectively prohibited in residential zones.

Application Process(5)

•Step-by-step guide to get an STR permit in Palo Alto: Step 1: Register for a City Business Registry - All rental operators in Palo Alto must register with the city's business registry program. Documents needed: Proof of ownership, Valid ID. Estimated time: 1 week. Cost: $50. More info: https://www.paloalto.gov/Business/Business-License-Registry Step 2: Obtain Transient Occupancy Tax (TOT) Certificate - Register for a TOT certificate through the city's third-party administrator, Avenu Insights, to facilitate tax collection. Documents needed: Business registry number. Estimated time: 1-2 weeks. More info: https://paloalto.uprolate.com/ Step 3: Verify Primary Residence and Fire Safety - Ensure the property is your primary legal residence and that smoke alarms and fire extinguishers are installed per city code. Documents needed: Evidence of primary residence (Utility bills, Voter ID). Estimated time: Ongoing. More info: https://www.paloalto.gov/Departments/Fire

Fees & Costs(1)

•Palo Alto charges a registration fee of $50 (annual).

Taxes(1)

•Palo Alto charges a Transient Occupancy Tax of 0.155%.

Limits & Restrictions(4)

•Palo Alto limits STRs to a maximum of 1 vehicles.
•Palo Alto limits STRs to 90 nights per year.
•Palo Alto limits STRs to a maximum of 2 guests.
•Palo Alto has a citywide cap of 90 STR permits.

Safety Requirements(1)

•Palo Alto requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted emergency contact, parking, trash plan, noise restrictions (Compliance with City noise ordinance Chapter 9.10 is mandatory.).

Penalties(1)

•Palo Alto enforces the following penalties for STR violations: First violation: $500 fine. Subsequent violations: $1,000 fine per day.

Exemptions(1)

•Palo Alto exempts the following from STR regulations: bed and breakfast establishments, hotels and motels, long-term stays (30+ days), Stays over 30 consecutive days.

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other California Markets

Los Angeles

California

Strict

The City of Los Angeles requires all short-term rental hosts to register for a Home-Sharing permit and only permits the rental of one's primary residence. Stays are capped at 120 days per year unless an Extended Home-Sharing permit is obtained, and rentals in RSO-regulated buildings or newer ADUs are strictly prohibited.

Permit requiredNight limitsPrimary residence

0.1% total tax

Anaheim

California

Prohibited

Short-term rentals in Anaheim are strictly limited to approximately 277 'pre-moratorium' operators who were grandfathered in 2019. The city currently prohibits the issuance of any new STR permits. Allowed operators must follow rigid 'Good Neighbor' policies, enforce a 3-night minimum stay, and pay a 15% Transient Occupancy Tax.

Permit required

15.0% total tax

Mammoth Lakes

California

Moderate

Short-term rentals are heavily regulated in Mammoth Lakes and generally restricted to multi-family and resort zones (RMF-2, Resort, etc.). Hosts must obtain an STR Certificate and a Business Tax Certificate, and pay a total TOT rate of 13%. Stays of 31 days or longer are exempt from these regulations.

Permit required

0.1% total tax

Big Bear Lake

California

Strict

The City of Big Bear Lake regulates short-term rentals under Chapter 5.44, requiring an annual license, rigorous safety inspections, and a strict guest limit of 2 per bedroom plus 2. Owners are limited to 2 licenses total and must remit a 9% combined TOT and TBID tax quarterly.

Permit required

0.1% total tax

Palo Alto

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Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(8)

Requirements(7)

Application Process(5)

Fees & Costs(1)

Taxes(1)

Limits & Restrictions(4)

Safety Requirements(1)

Penalties(1)

Exemptions(1)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Other California Markets

Los Angeles

Anaheim

Mammoth Lakes

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Palo Alto

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

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

2What is the TOT tax rate in Palo Alto?

3Is there a limit on how many nights I can rent my home?

4Can I rent out a second home in Palo Alto?

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