Key West Short-Term Rental Regulations

Last verified: 2026-04-04
TL;DR
Key West requires Business Tax Receipt (Transient Rental License) ($178) with no primary-residence requirement. Combined tax rate is 11%. No annual day limit, but each stay must be 29 days or fewer per stay.
⚠ Before you rely on the summary
The number of STR permits is capped. The permit pool may be full and new permits limited, waitlisted, or currently unavailable — new operators may not be able to obtain one. Confirm current availability (and the rules for your specific zone/permit type) before relying on the figures below.
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 — Business Tax Receipt (Transient Rental License) ($178)
Primary Residence Not required
Annual Day Limit No limit — 29 days or fewer per stay
Tax Rate 11%
Max Penalty 50% of taxes owed (for tax delinquency) per violation
Insurance Not required

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

Permit & Licensing

Business Tax Receipt (Transient Rental License)

FeeAmount
Initial cost$178
Renewal$118-$300 (estimated range for transient rental Business Tax Receipt)

This permit type does not require primary residence.

Application Process

Obtain City of Key West Business Tax Receipt from Licensing Division. Also obtain State of Florida transient rental license. License pool is capped; properties without existing licenses may need to acquire a transferred license.

Tax Obligations

TaxRateAuthority
Florida State Sales Tax 6% Florida Department of Revenue
Monroe County Tourist Development Tax 5% Monroe County Tax Collector

Combined rate: 11% of gross rental income.

Collection: Self-remit. Monroe County Tourist Development Tax filed monthly with Monroe County Tax Collector by 1st of following month (delinquent after 20th). Florida state sales tax filed with Florida Dept. of Revenue.

Filing: Monthly. Monroe County TDT returns due by 1st of following month (delinquent after 20th). Returns required even during months with no rental income.

Rental Limits

Key West does not impose an annual cap on the number of nights you can rent. Each individual stay must be 29 days or fewer per stay.

Zoning & Restrictions

Cap-based system with frozen total license pool. Licenses can be transferred with property sales but total pool is fixed. No new licenses issued beyond the cap.

Insurance & Safety

Insurance

Key West 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

Penalties for Non-Compliance

Each day an unlicensed residential unit is rented or advertised for rental constitutes a separate violation. Tax delinquency: minimum 10% penalty per month, maximum 50% of taxes owed.

Platform Requirements

Compliance Checklist

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

  1. Meet safety requirements. State of Florida vacation rental license required (DBPR). City of Key West Business Tax Receipt required. Property must meet Florida DBPR safety standards (smoke detectors, fire extinguishers, clean bedding).
  2. Apply for Business Tax Receipt (Transient Rental License). Submit application + $178 fee.
  3. Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
  4. Collect and remit taxes. 11% on all bookings.
  5. Renew annually. $118-$300 (estimated range for transient rental Business Tax Receipt) renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Key West?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Key West requires a Business Tax Receipt (Transient Rental License).
How much does a short-term rental permit cost in Key West?
A Business Tax Receipt (Transient Rental License) in Key West costs $178 per year.
Does Key West require a short-term rental to be your primary residence?
No. Key West 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 Key West?
Key West does not cap the total number of nights per year, but each individual stay must be 29 days or fewer.
What taxes do you pay on a short-term rental in Key West?
Short-term rental stays in Key West are subject to a combined 11% in lodging taxes. This combines 6% Florida State Sales Tax + 5% Monroe County Tourist Development Tax. The host is responsible for collecting and remitting them.
What happens if you run a short-term rental without a permit in Key West?
Operating without a permit can cost up to 50% of taxes owed (for tax delinquency).

Official Sources

  1. Map & Addresses of Transient Rental Properties | Key West, FL
  2. What requirements are there for residential rentals? | City of Key West FAQ
  3. Article XI - Transient Rentals | Key West Code of Ordinances
  4. Special Vacation Rental Program | Monroe County, FL - Official Website
  5. Tourist Development Tax | Monroe County Tax Collector
  6. How much does a Business Tax Receipt cost? | City of Key West FAQ
  7. Licensing Division | Key West, FL
  8. How can I confirm the validity of vacation rentals? | City of Key West FAQ