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

**Yes**, a Short-Term Rental Business License is required in Telluride. You need to obtain this license from the Town of Telluride, costing $165 annually. Make sure to include your license number on all online listings to ensure compliance with local regulations, and avoid penalties. *(51 words)*

What is the TOT tax rate in Telluride?

**2.5%** is the excise tax rate for short-term rentals in Telluride, Colorado. This tax is in addition to standard sales taxes. Hosts are responsible for collecting and remitting this tax to the town. Check with the Telluride Finance Department for specific filing deadlines, requirements, and further details. *(47 words)*

Are short-term rentals allowed in Telluride?

**Yes**, short-term rentals are generally allowed in Telluride, but they are strictly regulated. Residential zones have license caps, so there might be a waitlist. Deed-restricted affordable housing is strictly prohibited from being used for short-term rentals. Ensure compliance with all local regulations and licensing requirements. *(49 words)*

How much does an STR permit cost in Telluride?

**$165** is the annual fee for a Short-Term Rental Business License in Telluride. This license is required to legally operate a short-term rental within the town. Make sure to renew your license annually and comply with all other local regulations, like collecting and remitting the excise tax. *(47 words)*

Can renters host on Airbnb in Telluride?

**No**, tenants are not permitted to host on Airbnb in Telluride. Only property owners with the proper licensing can operate short-term rentals. Renting out a property that is deed-restricted as affordable housing is strictly prohibited. Make sure to check with the Town of Telluride for clarification. *(45 words)*

Telluride, CO Short-Term Rental Laws & Rules

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Verified: Jan 30, 2026

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Summary

The Town of Telluride strictly regulates short-term rentals through a licensing system that includes a 2.5% STR excise tax and specific caps on licenses in residential zones. Most properties require an annual business license ($165), and deed-restricted affordable housing is strictly prohibited from being rented short-term.

Restriction Level

⛔

Strict

Score: 36 (restrictive)

Why this classification:

•Standard permit fee: $165
•Limited to 1 property per owner
•Tenants cannot host
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

To host an Airbnb in Telluride, you must obtain a Town Business License specifically for Short-Term Rentals, which costs $165 per year. Be aware that Telluride has a 2.5% 'Excise Tax' on top of standard sales taxes, and you must include your license number on all online listings. If your property is in a residential neighborhood, there may be a waitlist for a license due to local caps. Finally, you must have a local contact person available 24/7 to respond to any issues at the property.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.2%

Permit Fee

$165

Processing Time

1-2 weeks

6 Things Hosts Often Miss

1.Telluride has a strict cap on STR licenses in residential zones; new owners may be placed on a waitlist.
2.A 2.5% STR Excise Tax applies to all rentals, which is separate from the standard 8.5% sales tax.
3.Short-term rentals are strictly prohibited in deed-restricted or employee housing units.
4.Licenses expire on December 31st each year; late renewals (after Jan 1) incur a 100% fee penalty.
5.You must designate a 'Local Representative' who can respond to the property within 60 minutes.
6.The license number must be clearly displayed in the first line of any online advertising (Airbnb/VRBO).

Regulation Details

Eligibility(5)

•Telluride does NOT require the property to be a primary residence. Investment properties are allowed.
•Telluride allows STRs in the following property types: All residential units subject to zoning.
•Telluride: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Telluride: You can have a co-host or property manager help manage your listing.

Requirements(16)

•Telluride STR warning: Airbnb and VRBO do NOT remit Telluride's 11% local taxes; the host is 100% responsible.

Application Process(9)

•Telluride extended permit requirement: Regulatory Fee of $857 per bedroom applies only to 'Classic' licenses. Administrative fee is $288. Residential licenses pay $66 per sleeping room plus $288 admin fee.

Fees & Costs(2)

•Telluride charges a registration fee of $288 (annual). Extended/additional fee: $857 (Regulatory Fee of $857 per bedroom applies only to 'Classic' licenses. Administrative fee is $288. Residential licenses pay $66 per sleeping room plus $288 admin fee.).
•Telluride: The 'Classic' license fee is extremely high due to a $857 per-bedroom regulatory fee.

Taxes(3)

•Telluride: Airbnb and VRBO do NOT remit Telluride's 11% local taxes; the host is 100% responsible.
•Colorado has a state sales tax of 2.9% that applies to STR rentals.

Limits & Restrictions(6)

•Telluride enforces quiet hours: Subject to general town noise ordinance.
•Telluride: Residential Zone properties are capped at 29 total nights per year.
•Telluride limits stays to a maximum of 29 nights.

Safety Requirements(1)

•Telluride requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Self-Inspection Affidavit required annually, Bear-proof trash containers required, 24/7 on-call representative within Town limits.

Penalties(2)

•Telluride enforces the following penalties for STR violations: First offense: Varies by violation. Daily fine: Varies. Permit may be revoked for violations.
•Telluride: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(2)

•Telluride exempts the following from STR regulations: long-term rentals (30+ days), Commercial properties are exempt from the 2.5% Affordable Housing STR Tax.
•Telluride: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

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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 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

Telluride

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

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Regulation Details

Eligibility(5)

Requirements(16)

Application Process(9)

Fees & Costs(2)

Taxes(3)

Limits & Restrictions(6)

Safety Requirements(1)

Penalties(2)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Other Colorado Markets

Summit County

Eagle County

La Plata County

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Telluride

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

6 Things Hosts Often Miss

Step-by-Step Application Guide

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Frequently Asked Questions

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

2What is the TOT tax rate in Telluride?

3Are short-term rentals allowed in Telluride?

4How much does an STR permit cost in Telluride?

5Can renters host on Airbnb in Telluride?

Related Content

Other Colorado Markets

Summit County

Eagle County

La Plata County

Aspen