Louisville Short-Term Rental Regulations
| Permit | ✓ Required — Annual STR Registration ($250) — See below for other permit types |
| Primary Residence | Varies by permit type |
| Annual Day Limit | No limit |
| Tax Rate | 15.5% + business license fee |
| Max Penalty | $1,000 per day |
| Insurance | $1,000,000 liability required |
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Permit & Licensing
- Annual STR Registration — You live in the property and rent part or all of it ($250)
- Conditional Use Permit + Annual STR Registration — You don't live at the property ($250)
Annual STR Registration
| Fee | Amount |
|---|---|
| Initial cost | $250 |
| Renewal | $250 / Annual |
The property must be your primary residence. This means investment properties are not eligible for this permit type.
Conditional Use Permit + Annual STR Registration
| Fee | Amount |
|---|---|
| Initial cost | $250 |
| Renewal | $250 / Annual |
This permit type does not require primary residence.
Application Process
Apply online or in person with the Office of Planning; provide Kentucky ID and two residency proofs; $250 fee; administratively approved; 2-4 weeks processing
Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Louisville Metro Transient Room Tax | 8.5% | Louisville Metro Revenue Commission |
| Kentucky Sales Tax | 6% | Kentucky Department of Revenue |
| Kentucky Transient Room Tax | 1% | Kentucky Department of Revenue |
| Business License Tax | $30 plus $3 per $1,000 of gross rental income | Louisville Metro Revenue Commission |
Combined rate: 15.5% + business license fee of gross rental income.
Collection: Platforms (Airbnb, VRBO) auto-remit state taxes; hosts must self-remit Louisville Metro Transient Room Tax and Business License Tax to LMRC unless platform collects
Filing: Monthly; due by 20th of following month; file with Louisville Metro Revenue Commission using form TR1M-S
Rental Limits
Louisville does not impose an annual cap on the number of nights you can rent.
Occupancy & Density Limits
12 adults maximum
Zoning & Restrictions
Allowed in residential (R-1 through R-4) with owner-occupancy or CUP; commercial zones (C-1, C-2, C-3) with administrative approval; prohibited in industrial zones and planned development districts; prohibited in multi-family unless CR, CN, C1, C2, C3, OR3, OTF, or EZ1
Insurance & Safety
Insurance
Operators must maintain at least $1,000,000 in liability insurance covering the property's use as a short-term rental.
Safety & Operating Requirements
- Smoke detectors in each bedroom and per level
- Carbon monoxide detectors (if gas appliances present)
- Fire extinguishers per level
- Clearly marked emergency exits
- Emergency contact information posted
- Adequate nighttime lighting
- Visible address display
Penalties for Non-Compliance
$125 first offense, $250 second offense, $500 third offense, $1,000 for additional violations; each day counts as separate offense
Platform Requirements
- Registration number must appear in all online listings
- Advertising unregistered STRs prohibited
Compliance Checklist
Follow these steps to legally operate a short-term rental in Louisville:
- Determine your permit type. Louisville has 2 permit types. Identify which applies to your property (Annual STR Registration, Conditional Use Permit + Annual STR Registration).
- Meet safety requirements. Smoke detectors in each bedroom and per level. Carbon monoxide detectors (if gas appliances present). Fire extinguishers per level. Clearly marked emergency exits. Emergency contact information posted. Adequate nighttime lighting. Visible address display.
- Obtain liability insurance. $1,000,000 minimum.
- Apply for your STR permit. Submit application + $250 fee. See permit types above to determine which applies.
- Register for tax accounts. Set up lodging tax accounts with Louisville Metro Revenue Commission.
- Display your permit number. Include your permit/license number in all listings and advertisements.
- Collect and remit taxes. 15.5% + business license fee on all bookings.
- Renew annually. $250 renewal fee.