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

**Yes**, Lexington requires a Short-Term Rental License for all properties rented for less than 30 days. You need to register your property with the Lexington-Fayette Urban County Government (LFUCG) and complete an inspection. This ensures compliance with local safety standards and regulations before hosting guests. (53 words)

What is the TOT tax rate in Lexington, KY?

**8.5% TOT** is the local transient occupancy tax rate for short-term rentals in Lexington. Hosts are responsible for collecting this tax from guests and remitting it to the city. Platforms like Airbnb may collect this tax on your behalf, but you still need to file monthly reports. (51 words)

Are short-term rentals allowed in Lexington?

**Yes**, short-term rentals are allowed in Lexington, KY, but they are subject to specific regulations. You need to obtain a short-term rental license and comply with occupancy limits based on the number of bedrooms. Ensure your property meets all safety and zoning requirements before listing it. (50 words)

How much does an STR permit cost in Lexington?

**$200** is the annual fee for a Short-Term Rental License in Lexington, KY. You need to renew this license each year to legally operate your Airbnb or vacation rental. This fee helps cover the costs of inspections and administration related to short-term rental regulations in the city. (51 words)

Can renters host on Airbnb in Lexington?

**No**, tenants are not allowed to host on Airbnb in Lexington. The regulations require that only property owners can obtain a short-term rental license. If you are renting a property, you cannot legally list it on short-term rental platforms without the explicit consent and license of the property owner. (55 words)

Lexington, KY Short-Term Rental Laws & Regulations

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Forensically verified with 3+ official sources

Verified: Jan 30, 2026

3 Official Sources

Summary

Lexington-Fayette Urban County Government requires all short-term rentals to be licensed and inspected as of July 2023. Hosts must pay a total local transient tax of 8.5% and comply with strict occupancy limits based on bedroom count.

Restriction Level

⚠️

Moderate

Score: 21 (restrictive)

Why this classification:

•Standard permit fee: $200
•Tenants cannot host
•Permit required
•Reporting required
•No night cap
•No primary residence requirement

In Plain English

To host an Airbnb in Lexington, you must register your property with the city-county government (LFUCG). You'll need to pay a $200 annual fee and have your home inspected to ensure it has proper fire alarms and parking. While platforms like Airbnb collect the 8.5% local tax for you, you still need to file monthly reports. You can host up to 12 people max, but the limit is usually lower depending on how many bedrooms your house has.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$200

Processing Time

14-30 days

7 Things Hosts Often Miss

1.You must have a general business license before you can apply for an STR license.
2.Occupancy is strictly capped at 2 people per bedroom + 2 extra, never exceeding 12.
3.Safety inspections are mandatory and include checks for fire extinguishers and evacuation maps.
4.ADUs (Accessory Dwelling Units) may have additional restrictions or require the owner to live on-site.
5.Parking must be provided off-street as shown on your site plan; street parking may not count toward requirements.
6.Event hosting (weddings, parties) is strictly prohibited in residential STRs.
7.Failing to register by the 2023 deadline or operating without a license results in a $125/day fine.

Regulation Details

Eligibility(7)

•Lexington: You can have a co-host or property manager help manage your listing.
•Lexington allows STRs in the following property types: Single-family homes, Condos, Apartments, Duplexes.
•Lexington does NOT require the property to be a primary residence. Investment properties are allowed.
•Lexington: UNHOSTED DENSITY LIMIT: You cannot get a new permit if there is another unhosted STR within 600 feet.

Requirements(14)

•Common mistakes and gotchas for STR hosts in Lexington: 1. UNHOSTED DENSITY LIMIT: You cannot get a new permit if there is another unhosted STR within 600 feet. 2. GUEST CAP REDUCED: As of Dec 2024, the maximum guest limit was reduced from 12 to 10 people. 3. NO PRIVATE EVENTS: You cannot host weddings, parties, or large commercial events at your STR. 4. ADVERTISING MANDATE: All listings must display the Local Registration Number and maximum occupancy. 5. ANNUAL RENEWAL: Licenses must be renewed by January 31st each year to avoid $500/day penalties. 6. ZONING PERMIT REQUIRED: Simply having a business license is not enough; you must also have a Zoning Compliance Permit.

Application Process(7)

•Step-by-step guide to get an STR permit in Lexington: Step 1: Obtain Zoning Compliance Permit - Apply through the Division of Planning to ensure the property meets zoning standards for STR use. More info: https://www.lexingtonky.gov/permits Step 2: Apply for Business License - Obtain an Occupational License from the Division of Revenue. Cost: 100. More info: https://www.lexingtonky.gov/how-to-start-a-business-lexington Step 3: Register for STR Special Fees License - Complete the STR registration form and pay the annual $200 fee. Documents needed: Proof of Insurance, Zoning Permit. Cost: 200. More info: https://www.lexingtonky.gov/short-term-rentals

Fees & Costs(2)

•Lexington charges a registration fee of $200 (annual). Extended/additional fee: $100 (For each additional unit beyond the first).
•Lexington: ANNUAL RENEWAL: Licenses must be renewed by January 31st each year to avoid $500/day penalties.

Taxes(2)

•Lexington charges a Transient Room Tax of 8.5%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb remits the 8.5% local tax; hosts are responsible for the 1% state tax and 6% sales tax.
•Kentucky has a state sales tax of 6% that applies to STR rentals.

Limits & Restrictions(6)

•Lexington occupancy calculation: 2 per bedroom plus 4 additional guests, total cap of 10 (effective Dec 2024). Count your bedrooms to determine your max guest limit.
•Lexington: GUEST CAP REDUCED: As of Dec 2024, the maximum guest limit was reduced from 12 to 10 people.
•Lexington enforces quiet hours: 11:00 PM - 7:00 AM (No events allowed during these hours).

Safety Requirements(1)

•Lexington requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Evacuation plan must be posted, Trash and recycling information must be provided to guests.

Penalties(2)

•Lexington enforces the following penalties for STR violations: First offense: Notice of violation. Second offense: Citations up to $500 per day. Daily fine: $500. Permit may be revoked for violations.
•Lexington: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions(2)

•Lexington: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Lexington exempts the following from STR regulations: long-term rentals (30+ days), extended stays, Hotels/Motels/B&Bs are exempt from STR specific fees as they fall under different licensing.

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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.

Lexington

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Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

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Regulation Details

Eligibility(7)

Requirements(14)

Application Process(7)

Fees & Costs(2)

Taxes(2)

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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Lexington

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 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 Lexington?

2What is the TOT tax rate in Lexington, KY?

3Are short-term rentals allowed in Lexington?

4How much does an STR permit cost in Lexington?

5Can renters host on Airbnb in Lexington?

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