Birmingham Short-Term Rental Regulations

Sources verified 2026-07-21
TL;DR
Birmingham requires General Business License ($100-$250) with no primary-residence requirement. Combined tax rate is 17.5% + $3/night per room (4% state + 7% county + 6.5% city). No annual day limit.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — General Business License ($100-$250)
Primary Residence ✗ Not required
Annual Day Limit No limit
Tax Rate 17.5% + $3/night per room (4% state + 7% county + 6.5% city)
Max Penalty No STR-specific maximum penalty is set; no adopted STR ordinance. General business-license and lodging-tax enforcement applies.
Insurance Not required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

General Business License

FeeAmount
Initial cost$100-$250
Renewal$100-$250 / 1 year

This permit type does not require primary residence.

Application Process

Apply online through the City of Birmingham Online Permit Center; the business-license classification is assigned by the city case-by-case.

Tax Obligations

TaxRateAuthority
Alabama State Lodgings Tax 4% Alabama Department of Revenue
Jefferson County Lodgings Tax 7% Jefferson County
City of Birmingham Lodgings Tax 6.5% plus $3 per night per room City of Birmingham

Combined rate: 17.5% + $3/night per room of gross rental income.

Collection: State 4% is collected by ALDOR; the City of Birmingham (6.5% + $3/night) and Jefferson County (7%) lodging taxes are self-administered (self-remitted to the local jurisdiction).

Rental Limits

Birmingham does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Check with local government

Insurance & Safety

Insurance

Birmingham does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Penalties for Non-Compliance

No short-term-rental-specific penalty schedule exists (no adopted STR ordinance). Operating without the required general city business license is subject to the City of Birmingham general business-license enforcement.

Market Snapshot

Demand context for Birmingham from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

MetricValueSource
Population (2025 est.) 195,893 (-2.2% since 2020) U.S. Census Bureau

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Birmingham:

  1. Apply for General Business License. Submit application + $100-$250 fee.
  2. Register for tax accounts. Set up lodging tax accounts with Alabama Department of Revenue; City of Birmingham and Jefferson County. Register separately with the local city and/or county for their lodging taxes (self-administered — not collected by the state).
  3. Collect and remit taxes. 17.5% + $3/night per room on all bookings.
  4. Renew annually. $100-$250 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Birmingham?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Birmingham requires a General Business License.
Does Birmingham require a short-term rental to be your primary residence?
No. Birmingham allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.
How many days a year can you short-term rent in Birmingham?
Birmingham does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.
What taxes do you pay on a short-term rental in Birmingham?
Short-term rental stays in Birmingham are subject to a combined 17.5% + $3/night per room in lodging taxes. This combines 4% Alabama State Lodgings Tax + 7% Jefferson County Lodgings Tax + 6.5% plus $3 per night per room City of Birmingham Lodgings Tax. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.
What are the penalties for short-term rental violations in Birmingham?
No short-term-rental-specific penalty schedule exists (no adopted STR ordinance).

Official Sources

  1. City of Birmingham Permitting — Department of Planning, Engineering & Permits
  2. Birmingham, AL Code of Ordinances (Municode Library) — incl. Appendix D Zoning
  3. Transient Occupancy (Lodgings) Tax — Alabama Department of Revenue
  4. Birmingham & Jefferson County lodging tax rates — ALDOR Local Lodgings Report + City Code 3A-6-2
  5. City of Birmingham Business License Fee Schedule (Real Estate Lease-Rental and Lodging Houses)