Telluride Short-Term Rental Regulations
Last verified: 2026-04-07
TL;DR
Telluride requires an STR permit — 3 types available (fees $288–$453 by type) with no primary-residence requirement.
Combined tax rate is 17.22% (2.9% state + 3.32% county + 11% city).
Annual day limit: 29 days–unlimited (varies by permit type). 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 — Classic License ($453+) — See below for other permit types |
| Primary Residence | ✗ Not required |
| Annual Day Limit | 29 days–unlimited (varies by permit type) |
| Tax Rate | 17.22% (2.9% state + 3.32% county + 11% city) |
| Max Penalty | $1,000 per day |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Which permit type applies to you?
- Classic License — You don't live at the property (investment / non-owner-occupied) — Available in non-residential zones (no annual night limit) ($453+/year)
- Limited License — You don't live at the property (investment / non-owner-occupied) — limited to 29 days/year ($370.50+/year)
- Residential License — You don't live at the property (investment / non-owner-occupied) — For Residential Zone Districts (HT, HD-1, HD-2, R, HR, MDR); limited to 3 stays per year, each under 29 nights ($288+/year)
Classic License
| Fee | Amount |
|---|---|
| Initial cost | $453+ |
| Renewal | $453+ / Annual |
This permit type does not require primary residence. Zoning restriction: Available in non-residential zones (no annual night limit).
Limited License
| Fee | Amount |
|---|---|
| Initial cost | $370.50+ |
| Renewal | $370.50+ / Annual |
This permit type does not require primary residence.
Residential License
| Fee | Amount |
|---|---|
| Initial cost | $288+ |
| Renewal | $288+ / Annual |
This permit type does not require primary residence. Zoning restriction: For Residential Zone Districts (HT, HD-1, HD-2, R, HR, MDR); limited to 3 stays per year, each under 29 nights.
Application Process
Online only via Town of Telluride STR portal. Annual self-inspection checklist required. License non-transferable.
Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.
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Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Telluride sales tax | 4.5% | City of Telluride |
| Town Lodgers' Tax | 2% | City of Telluride |
| Lodging excise tax (airline guarantee) | 2% | City of Telluride |
| Affordable Housing STR Tax | 2.5% | City of Telluride |
| Colorado state sales tax | 2.9% | State of Colorado |
| San Miguel County sales tax | 1.0% | County |
| San Miguel Co RTA TR | 1.07% | County |
| SMART Visitor Benefit Tax | 1.25% | County |
Combined rate: 17.22% of gross rental income.
Collection: Self-remit
Filing: Monthly
Rental Limits
Telluride annual day limit: 29 days–unlimited (varies by permit type).
Zoning & Restrictions
- Classic License: non-residential zones only, no annual night limit.
- Residential License: Residential Zone Districts (HT, HD-1, HD-2, R, HR, MDR), max 3 stays per year (each under 29 nights).
- Limited License: any zone, capped at 29 rental nights per year.
Insurance & Safety
Insurance
Telluride 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
- Annual self-inspection checklist certifying basic life and safety features
- Random inspections may occur throughout the year
- License must be posted prominently on the property
Penalties for Non-Compliance
- Misdemeanor punishable by fine up to $1,000, or imprisonment up to 90 days, or both
- Each day a violation continues is a separate offense
Platform Requirements
- Platforms have no tax agreements with the Town
- Hosts must self-remit. License number must be displayed in all advertisements.
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Compliance Checklist
Follow these steps to legally operate a short-term rental in Telluride:
- Determine your permit type. Telluride has 3 permit types. Identify which applies to your property (Classic License, Limited License, Residential License).
- Meet safety requirements. Annual self-inspection checklist certifying basic life and safety features. Random inspections may occur throughout the year. License must be posted prominently on the property.
- Apply for your STR permit. Submit application. Fees vary by type: Classic License $453+; Limited License $370.50+; Residential License $288+. See permit types above to determine which applies.
- Register for tax accounts. Set up lodging tax accounts with Town of Telluride.
- Display your permit number. Include your permit/license number in all listings and advertisements.
- Collect and remit taxes. 17.22% on all bookings.
- Renew annually. Renewal fees vary by permit type ($453+ / $370.50+ / $288+). See permit types above.
Frequently Asked Questions
- Do you need a permit to run an Airbnb in Telluride?
- Yes. Telluride requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 3 permit types. See the permit types above to find which applies to your property.
- Does Telluride require a short-term rental to be your primary residence?
- No. Telluride 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 Telluride?
- Telluride's annual rental limit depends on the situation: 29 days–unlimited (varies by permit type).
- What taxes do you pay on a short-term rental in Telluride?
- Short-term rental stays in Telluride are subject to a combined 17.22% in lodging taxes. This combines 4.5% Telluride sales tax + 2% Town Lodgers' Tax + 2% Lodging excise tax (airline guarantee) + 2.5% Affordable Housing STR Tax + 2.9% Colorado state sales tax + 1.0% San Miguel County sales tax + 1.07% San Miguel Co RTA TR + 1.25% SMART Visitor Benefit Tax. The host is responsible for collecting and remitting them.
- What are the penalties for short-term rental violations in Telluride?
- Penalties run up to $1,000 per day (see the Penalties section for the full schedule).
Tools for Short-Term Rental Hosts
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