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

**Yes**, Carbondale requires a Short-Term Rental License to operate legally. You need to apply for this permit, which ensures compliance with local regulations. The permit helps the town track STR activity and ensure safety standards are met. Operating without a permit could result in fines.

What is the TOT tax rate in Carbondale?

**8% TOT** is the current transient occupancy tax rate for short-term rentals in Carbondale. In addition to this, hosts must pay a 6% excise tax on all STR bookings. You are responsible for collecting the 8% TOT from guests and remitting it to the town. Airbnb and VRBO may automatically collect a portion of this tax.

Are short-term rentals allowed in Carbondale?

**Yes**, short-term rentals are allowed in Carbondale, but are strictly regulated. You must operate from your primary residence, defined as living there for at least nine months of the year. Following the passage of Ballot Measure 2A in 2022, hosts must also adhere to specific rules. Make sure to consult the town's website.

Do I need to live in my property to rent it on Airbnb in Carbondale?

**Yes**, you need to live in the property to rent it out on Airbnb in Carbondale. The town requires that short-term rentals be located in the host's primary residence. Primary residence is defined as living there for at least nine months of the year. This ensures that STRs are owner-occupied and integrated within the community.

How much does an STR permit cost in Carbondale?

**$125** is the fee for a Short-Term Rental License in Carbondale. You need to pay this fee when submitting your application to the town. This is a one-time fee, but permits need to be renewed annually. The revenue from the permit is used to administer the STR program and ensure compliance with the rules.

Carbondale, CO Short-Term Rental Laws

Baseline Verification

80%

Basic verification complete

Verified: Jan 30, 2026

3 Official Sources

Summary

Short-term rentals in Carbondale are strictly regulated and generally limited to an owner's primary residence, defined as living there at least nine months of the year. Following the passage of Ballot Measure 2A in 2022, hosts must pay a 6% excise tax on all STR bookings in addition to standard lodging taxes.

Restriction Level

⛔

Strict

Score: 88 (lenient)

Why this classification:

•Primary residence required
•Owner-occupied required
•Limited to 1 property per owner
•Tenants cannot host
•Permit required
•Reporting required
•No night cap

In Plain English

To host an Airbnb in Carbondale, you must first ensure the home is your primary residence where you live for at least nine months out of the year. You'll need to apply for a town STR license ($125/year) and a sales tax license. Be prepared to collect and pay a total of 8% in town taxes (2% lodging + 6% STR excise tax) and remit these monthly. You must also provide off-street parking and follow strict occupancy limits based on the number of bedrooms you have.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Required

Total Tax Rate

0.1%

Permit Fee

$125

Processing Time

2-4 weeks

7 Things Hosts Often Miss

1.Primary residency is mandatory for STRs in residential zones (9 months/year).
2.The 6% STR Excise Tax is on top of the 2% Lodging Tax, totaling 8% local tax.
3.Maximum occupancy is strictly capped at 2 people per bedroom plus 2, maxing out at 8.
4.Only one STR license is allowed per person.
5.ADUs are allowed for STRs but ONLY if the owner lives in the main house or the ADU as their primary residence.
6.The permit number must be displayed in all online advertisements.
7.Each day of operating without a permit can result in a separate $1,000+ fine.

Regulation Details

Eligibility(8)

•Carbondale, CO: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Carbondale limits hosts to a maximum of 1 STR properties per owner.
•Carbondale does NOT allow tenants to host STRs. Only property owners may operate short-term rentals.
•Carbondale: You can have a co-host or property manager help manage your listing.

Requirements(22)

•Carbondale STR warning: Primary residency is mandatory for STRs in residential zones (9 months/year).
•Carbondale, CO has different permit classes: Owner-Occupied (Primary Residence) vs Non-Owner Occupied. Hosted vs. unhosted rentals have different requirements.
•Carbondale: Hosts must report their rental activity monthly to the city, even if platforms collect taxes.

Application Process(11)

•STR regulations overview for Carbondale: Short-term rentals in Carbondale are strictly regulated and generally limited to an owner's primary residence, defined as living there at least nine months of the year. Following the passage of Ballot Measure 2A in 2022, hosts must pay a 6% excise tax on all STR bookings in addition to standard lodging taxes.

Fees & Costs(1)

•Carbondale charges a registration fee of $125 (annual).

Taxes(3)

•Carbondale charges a Lodging Tax and STR Excise Tax of 8%. This applies to stays under 30 days. Hosts are responsible for collecting and remitting this tax. Note: Hosts are generally responsible for remitting the 6% excise tax directly to the town.
•Colorado has a state sales tax of 2.9% that applies to STR rentals.

Limits & Restrictions(8)

•Carbondale: Each person can only register ONE property for short-term rental. You cannot legally operate multiple STRs.
•Carbondale occupancy calculation: 2 guests per bedroom plus 2 additional guests, not to exceed 8.. Count your bedrooms to determine your max guest limit.
•Carbondale limits STRs to a maximum of 8 guests. Formula: 2 guests per bedroom plus 2 additional guests, not to exceed 8.

Safety Requirements(1)

•Carbondale requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Egress windows must meet code, Adequate trash removal plan, Designated off-street parking.

Penalties(4)

•Carbondale: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Carbondale, CO: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Carbondale: Each day of operating without a permit can result in a separate $1,000+ fine.

Exemptions(3)

•Carbondale: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Carbondale, CO: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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 Colorado Markets

Summit County

Colorado

Moderate

Unincorporated Summit County has strictly regulated STRs via a two-tier overlay system: 'Resort' zones have unlimited permits, while 'Neighborhood' zones are subject to strict precinct caps and a 35-night annual rental limit. All hosts must obtain an annual permit and collect a 2% STR Excise Tax in addition to standard sales taxes.

Permit requiredNight limits

0.1% total tax

Eagle County

Colorado

Moderate

Short-term rentals in unincorporated Eagle County require an annual license and are subject to a 2% County Lodging Tax. The regulations, established in 2022, focus on parking, life safety, and ensuring a local contact is available to respond to complaints within 60 minutes.

Permit required

0.0% total tax

La Plata County

Colorado

Moderate

Short-term rentals in unincorporated La Plata County require a Vacation Rental Permit and must comply with Chapter 90, Article IV of the Land Use Code. Permits are tied to specific occupancy limits based on septic capacity and require wildfire mitigation and bear-proof trash containment.

Permit required

0.0% total tax

Aspen

Colorado

Strict

The City of Aspen requires all short-term rentals to obtain an annual permit categorized into three types: Classic, Lodge, or Investment. Stricter regulations and a significant STR excise tax (5-10%) were implemented following Measure 2A in 2022.

Permit requiredNight limits

0.2% total tax

Carbondale

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

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Regulation Details

Eligibility(8)

Requirements(22)

Application Process(11)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(8)

Safety Requirements(1)

Penalties(4)

Exemptions(3)

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Frequently Asked Questions

Related Content

Other Colorado Markets

Summit County

Eagle County

La Plata County

Aspen

Carbondale

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

Frequently Asked Questions

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

2What is the TOT tax rate in Carbondale?

3Are short-term rentals allowed in Carbondale?

4Do I need to live in my property to rent it on Airbnb in Carbondale?

5How much does an STR permit cost in Carbondale?

Related Content

Other Colorado Markets

Summit County

Eagle County

La Plata County

Aspen