Louisville Short-Term Rental Regulations

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Permit & Licensing

Annual STR Registration

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Conditional Use Permit + Annual STR Registration

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

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:

1. Determine your permit type. Louisville has 2 permit types. Identify which applies to your property (Annual STR Registration, Conditional Use Permit + Annual STR Registration).
2. 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.
3. Obtain liability insurance. $1,000,000 minimum.
4. Apply for your STR permit. Submit application + $250 fee. See permit types above to determine which applies.
5. Register for tax accounts. Set up lodging tax accounts with Louisville Metro Revenue Commission.
6. Display your permit number. Include your permit/license number in all listings and advertisements.
7. Collect and remit taxes. 15.5% + business license fee on all bookings.
8. Renew annually. $250 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Louisville?

Yes. Louisville requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in Louisville?

A short-term rental permit in Louisville costs $250.

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

It depends on the permit type. At least one Louisville permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.

How many days a year can you short-term rent in Louisville?

Louisville 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 Louisville?

Short-term rental stays in Louisville are subject to a combined 15.5% in lodging taxes. This combines 8.5% Louisville Metro Transient Room Tax + 6% Kentucky Sales Tax + 1% Kentucky Transient Room Tax + $30 plus $3 per $1,000 of gross rental income Business License Tax. The host is responsible for collecting and remitting them.

What happens if you run a short-term rental without a permit in Louisville?

Operating without a permit can cost up to $1,000 per day.