Operating a short-term rental in Orange Beach requires licenses from both the City of Orange Beach (Business License) and Baldwin County (Lodging Tax License). The total lodging tax rate is a significant 16%, although platforms like Airbnb are required to remit this on the host's behalf. The regulations are primarily focused on licensing and taxation, with no specified limits on rental nights or occupancy beyond standard building codes.
To host an Airbnb in Orange Beach, you'll need to get two separate licenses: a Lodging Tax License from Baldwin County and a Business License from the city. The total tax on your bookings will be 16%, but the good news is platforms like Airbnb handle collecting and paying it for you. You still must get the licenses and file tax returns, even if they show zero dollars collected by you. There are no city-imposed limits on how many nights you can rent per year, but make sure you renew both of your licenses annually before they expire on December 31st.
Permit Required
Yes
Night Limit
None
Primary Residence
Not Required
Total Tax Rate
16.0%
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
$124
Processing Time
1-2 weeks
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