What should Ludlow hosts know about 13% total tax: the rate?

13% Total Tax: The rate is composed of 9% State Rooms tax, 3% State STR surcharge (new as of Aug 2024), and 1% Ludlow Local Option tax (effective July 2025).

What zoning rules apply to STRs in Ludlow?

Septic Capacity: Occupancy is strictly limited by the property's permitted septic capacity; advertising 4 bedrooms when only 3 are permitted is a common source of heavy zoning fines.

What are the permit fees in Ludlow?

No Registry Required: A proposed 2025 ordinance to create a formal registry with high fees ($300-$600) was rejected, meaning only state-level rules currently apply locally.

What are the key requirements for Ludlow hosts?

State Inspection: If your unit sleeps 9 or more guests, you must undergo an official fire safety inspection from the VT Division of Fire Safety.

Ludlow, VT Short-Term Rental Regulations & Compliance Guide

Baseline Verification

100%

Basic verification complete

Verified: Feb 10, 2026

Summary

Ludlow does not currently require a specific local short-term rental permit after recent registry proposals were rejected, but all hosts must comply with state-level registration and a 13% total tax rate.

Restriction Level

✅

Permissive

Score: 3 (restrictive)

Why this classification:

•Reporting required
•No STR-specific permit required
•No night cap
•No primary residence requirement
•No STR-specific fee

In Plain English

There is no local short-term rental permit or registry required by the town as of early 2026. However, you must register with the state for tax collection and post a state safety self-certification form in your unit. Be aware that the town strictly enforces zoning rules regarding bedroom counts; advertising more bedrooms than your septic system is permitted for can result in fines of up to $200 per day.

At a Glance

Permit Required

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

4 Things Hosts Often Miss

1.13% Total Tax: The rate is composed of 9% State Rooms tax, 3% State STR surcharge (new as of Aug 2024), and 1% Ludlow Local Option tax (effective July 2025).
2.Septic Capacity: Occupancy is strictly limited by the property's permitted septic capacity; advertising 4 bedrooms when only 3 are permitted is a common source of heavy zoning fines.
3.No Registry Required: A proposed 2025 ordinance to create a formal registry with high fees ($300-$600) was rejected, meaning only state-level rules currently apply locally.
4.State Inspection: If your unit sleeps 9 or more guests, you must undergo an official fire safety inspection from the VT Division of Fire Safety.

Regulation Details

Eligibility(4)

•Ludlow: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Ludlow allows STRs in the following property types: Single Family, Condo, Townhouse, Multi-Family.
•Ludlow does NOT require the property to be a primary residence. Investment properties are allowed.
•Ludlow: You can have a co-host or property manager help manage your listing.

Requirements(8)

•Ludlow STR warning: Septic Capacity: Occupancy is strictly limited by the property's permitted septic capacity; advertising 4 bedrooms when only 3 are permitted is a common source of heavy zoning fines.
•Ludlow STR warning: No Registry Required: A proposed 2025 ordinance to create a formal registry with high fees ($300-$600) was rejected, meaning only state-level rules currently apply locally.

Application Process(6)

•Step-by-step guide to get an STR permit in Ludlow: Step 1: Register with Vermont Department of Taxes - Obtain a Vermont Business Tax Account and Meals and Rooms Tax account number to collect the 9% rooms tax and 3% STR surcharge. Documents needed: SSN or EIN, Property address. Estimated time: 1 week. More info: https://tax.vermont.gov/business/registration Step 2: Complete State Self-Certification Form - Download and complete the 'Short-Term Rental Safety, Health, and Financial Obligations' form provided by the VT Division of Fire Safety. Documents needed: Self-inspection checklist. Estimated time: 1 day. More info: https://firesafety.vermont.gov/sites/fire/files/files/documents/dfs_str_checklist.pdf Step 3: Verify Zoning Compliance - Ensure your advertised bedroom count matches the count on your property's recorded zoning or septic permit with the Town of Ludlow. Documents needed: Property tax bill, Recorded zoning permit. Estimated time: 1-2 days. More info: https://www.ludlow.vt.us/zoning Step 4: Post Required Documents - Post the completed state safety form and the contact information for the property manager in a visible location inside the unit. Estimated time: 1 day.

Fees & Costs(1)

•Ludlow: No Registry Required: A proposed 2025 ordinance to create a formal registry with high fees ($300-$600) was rejected, meaning only state-level rules currently apply locally.

Taxes(3)

•Vermont has a state sales tax of 0.09% that applies to STR rentals.
•Ludlow charges a Local Option Rooms Tax of 0.01%. This applies to stays under 30 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO generally collect state and local option taxes in VT

Limits & Restrictions(4)

•Ludlow enforces quiet hours: 10pm - 7am.
•Ludlow occupancy calculation: Limited to 8 for state self-certification; 9+ requires commercial fire inspection. Count your bedrooms to determine your max guest limit.
•Ludlow limits STRs to a maximum of 8 guests. Formula: Limited to 8 for state self-certification; 9+ requires commercial fire inspection
•Ludlow limits stays to a maximum of 29 nights.

Safety Requirements(2)

•Ludlow requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, posted maximum occupancy, posted emergency contact, Vermont STR Safety, Health, and Financial Obligations form must be posted, Egress in every sleeping space, GFI outlets in required areas, Secondary means of escape required.

Penalties(2)

•Ludlow: Septic Capacity: Occupancy is strictly limited by the property's permitted septic capacity; advertising 4 bedrooms when only 3 are permitted is a common source of heavy zoning fines.
•Ludlow enforces the following penalties for STR violations: First offense: $200 fine per day. Daily fine: $200 per day.

Exemptions(2)

•Ludlow: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Ludlow exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

Ludlow

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(4)

Requirements(8)

Application Process(6)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(4)

Safety Requirements(2)

Penalties(2)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

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Ludlow

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 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 Ludlow?

2What is the TOT tax rate in Ludlow?

3Are there occupancy or bedroom limits in Ludlow?

4What are the penalties for non-compliance in Ludlow?

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Other Vermont Markets

Bennington

Stowe

St Johnsbury

Montpelier