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.

Palo Alto

Prohibited

California · City of Palo AltoUpdated Mar 8, 2026

Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Feb 5, 2026Sources 3

Summary

Plain-english overview

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

Severity 100

Classification

Prohibited

100

Severity

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

What this means for you

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

Key numbers

Permit requiredNo

Night limit90/year

Primary residenceRequired

Total tax rate0.2%

Permit fee$50

4 things hosts often miss

Common compliance gaps

1Short-term rentals of an entire home (unhosted) are effectively prohibited in residential zones.
2The 15.5% Transient Occupancy Tax is among the highest in California.
3ADUs (granny flats) cannot be used as short-term rentals.
4Hosted stays are strictly capped at 90 days per year.

Regulation details

Sourced from official code

Eligibility8 rules

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).

Requirements7 rules

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 process5 rules

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 & costs1 rule

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

Taxes1 rule

Palo Alto charges a Transient Occupancy Tax of 0.155%.

Limits & restrictions4 rules

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 requirements1 rule

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.).

Penalties1 rule

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

Exemptions1 rule

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.

How to get permitted

Step-by-step guide for Palo Alto

0/3

steps completed

Step 1

Register for a City Business Registry

All rental operators in Palo Alto must register with the city's business registry program.

1 week$50

Documents needed

Proof of ownership
Valid ID

Official resource

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.

1-2 weeksFree

Documents needed

Business registry number

Official resource

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.

OngoingFree

Documents needed

Evidence of primary residence (Utility bills, Voter ID)

Official resource

Frequently asked questions

4 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes 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.

Researched & verified by Learn STR at GoStudioM

Palo Alto

Prohibited

California · City of Palo AltoUpdated Mar 8, 2026

Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Feb 5, 2026Sources 3

Summary

Plain-english overview

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

Severity 100

Classification

Prohibited

100

Severity

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

What this means for you

At a glance

Key numbers

Permit requiredNo

Night limit90/year

Primary residenceRequired

Total tax rate0.2%

Permit fee$50

4 things hosts often miss

Common compliance gaps

1Short-term rentals of an entire home (unhosted) are effectively prohibited in residential zones.
2The 15.5% Transient Occupancy Tax is among the highest in California.
3ADUs (granny flats) cannot be used as short-term rentals.
4Hosted stays are strictly capped at 90 days per year.

Regulation details

Sourced from official code

Eligibility8 rules

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).

Requirements7 rules

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 process5 rules

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 & costs1 rule

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

Taxes1 rule

Palo Alto charges a Transient Occupancy Tax of 0.155%.

Limits & restrictions4 rules

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 requirements1 rule

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.).

Penalties1 rule

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

Exemptions1 rule

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.

How to get permitted

Step-by-step guide for Palo Alto

0/3

steps completed

Step 1

Register for a City Business Registry

All rental operators in Palo Alto must register with the city's business registry program.

1 week$50

Documents needed

Proof of ownership
Valid ID

Official resource

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.

1-2 weeksFree

Documents needed

Business registry number

Official resource

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.

OngoingFree

Documents needed

Evidence of primary residence (Utility bills, Voter ID)

Official resource

Frequently asked questions

4 answered

Disclaimer

Researched & verified by Learn STR at GoStudioM

Summary

Restriction level

Why this classification

In plain English

At a glance

4 things hosts often miss

Regulation details

How to get permitted

Register for a City Business Registry

Obtain Transient Occupancy Tax (TOT) Certificate

Verify Primary Residence and Fire Safety

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?

Disclaimer

Summary

Restriction level

Why this classification

In plain English

At a glance

4 things hosts often miss

Regulation details

How to get permitted

Register for a City Business Registry

Obtain Transient Occupancy Tax (TOT) Certificate

Verify Primary Residence and Fire Safety

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?

Disclaimer