Santa Barbara Short-Term Rental Regulations

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Permit & Licensing

Business Tax Certificate (Vacation Rental)

This permit type does not require primary residence. Zoning restriction: STRs are regulated as hotels and are prohibited in single-unit and two-unit residential zones; they are allowed only in zones where hotels are permitted (certain commercial, multi-residential, and mixed-use zones), some requiring a Conditional Use Permit.

Application Process

Operating an STR requires a change-of-use approval treating the dwelling as a nonresidential hotel use. A Planner Consultation (Pre-Application) is recommended, then the property must be in a zone that allows or conditionally allows a hotel use (CUP via a Planning (PLN) Application where required; Coastal Development Permit in the coastal zone). A Zoning Clearance is required for the change from residential to nonresidential use, plus a business tax certificate (schedule 37-02 Vacation Rental Coastal or 37-01 Vacation Rental Non-Coastal at santabarbara.bizlicenseonline.com) and registration to remit TOT and TBID within 30 days of commencing operations. A Hotel Conversion Permit is required if more than one dwelling unit is converted (SBMC Chapter 30.155 / 28.88). See SBMC Title 28 (Coastal) and Title 30 (Inland) zoning ordinances.

Tax Obligations

Combined rate: 14% of gross rental income.

Collection: Taxes are collected by the short-term rental operator and remitted to the City monthly; operators submit the remittance form and payment for the preceding month's receipts on or before the 10th calendar day of each month.

Filing: Monthly; remittance form and payment for the preceding month's receipts are due on or before the 10th calendar day of each month.

Rental Limits

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

Zoning & Restrictions

• STRs are classified as Hotels and Similar Uses and are a nonresidential, commercial use of a property.
• STRs in single-unit zones are strictly prohibited; not allowed in R-S or R-2 (Title 30 Inland) or A, E, R-1, R-2 (Title 28 Coastal).
• Allowed Inland Zones: R-MH, C-R, C-G, and M-C.
• Allowed Coastal Zones: R-4, C-L, C-P, C-1, C-2, C-M, HRC-1, HRC-2, HRC-2/OC, and M-1.
• O-R, R-M, R-3, R-O, and O-C zones require a Conditional Use Permit and are only allowed in or on the same lot as a Structure of Merit or City Landmark.
• Properties with an ADU or JADU may not be rented for less than 31 consecutive days.
• STRs in the coastal zone require a Coastal Development Permit (CDP).

Insurance & Safety

Insurance

Santa Barbara 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.

Safety & Operating Requirements

• Conversion may require additional upgrades or reviews from other City reviewing agencies, such as fire partitions between sleeping units.
• Dwellings with six or more sleeping rooms or ten or more occupants changing from permanent to short-term occupancy trigger a change in occupancy from R-3 and R-1.
• Any alterations may trigger accessibility requirements in the Building Code.

Compliance Checklist

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

1. Meet safety requirements. Conversion may require additional upgrades or reviews from other City reviewing agencies, such as fire partitions between sleeping units. Dwellings with six or more sleeping rooms or ten or more occupants changing from permanent to short-term occupancy trigger a change in occupancy from R-3 and R-1. Any alterations may trigger accessibility requirements in the Building Code.
2. Apply for Business Tax Certificate (Vacation Rental). Submit application. Contact city for fee details.
3. Register for tax accounts. Set up lodging tax accounts with City of Santa Barbara (Finance Department).
4. Collect and remit taxes. 14% on all bookings.
5. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Santa Barbara?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Santa Barbara requires a Business Tax Certificate (Vacation Rental).

Does Santa Barbara require a short-term rental to be your primary residence?

No. Santa Barbara 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 Santa Barbara?

Santa Barbara 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 Santa Barbara?

Short-term rental stays in Santa Barbara are subject to a combined 14% in lodging taxes. This combines 12% Transient Occupancy Tax (TOT) + 2% Tourism Business Improvement District (TBID) Assessment. The host is responsible for collecting and remitting them.