Ocean City requires all property owners to obtain an annual Mercantile License for rental properties, which costs $125 per unit. The process involves a mandatory fire inspection and proof of $500,000 in liability insurance. The county and state levy a combined 15.475% tax on transient accommodations, which is typically remitted by booking platforms.
To host an Airbnb in Ocean City, you must get an annual Mercantile License from the city for $125 per unit. Before you can apply, you need to pass a fire inspection and get a certificate of insurance for at least $500,000. The city also sets occupancy limits at two people per bedroom. Be aware that on top of your earnings, guests will be charged a total of 15.475% in state and county taxes, which Airbnb will handle for you.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
15.5%
Disclaimer
This information is for general guidance only and should not be considered legal advice. Regulations change frequently. Always verify current requirements with local government authorities before operating a short-term rental.
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Permit Fee
$125
Processing Time
2-4 weeks
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