Nantucket Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental Certificate of Registration (Board of Health)

This permit type does not require primary residence.

Application Process

Register annually online through the Town's GovOS portal (nantucket-ma.munirevs.com); provide DOR identification number, upload a $1,000,000 liability insurance certificate, and attest to compliance. A separate certificate is required per dwelling unit; the certificate does not run with the land. Operators are subject to Board of Health inspection.

Tax Obligations

Combined rate: 11.7% (14.7% for professionally-managed short-term rentals subject to the 3% community impact fee) of gross rental income.

Collection: Operators collect and remit the room occupancy excise and fees to DOR via MassTaxConnect; where an intermediary (hosting platform or agent) collects the rent, the intermediary must file returns and remit the taxes and fees.

Filing: Monthly; returns due on or before the 30th day following the month, filed with DOR via MassTaxConnect

Rental Limits

Nantucket does not impose an annual cap on the number of nights you can rent. Each individual stay must be 31 days or fewer per stay.

Zoning & Restrictions

Check with local government

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

• Provide contact information for the operator and a designated person available to address any issues at the short-term rental within two hours' notice
• Property must have no outstanding building, sanitary, zoning, or fire code violations, orders of abatement, or stop-work orders
• Subject to inspection of the short-term rental by the Board of Health upon reasonable notice, or without notice in the event of an imminent threat to public health or safety

Penalties for Non-Compliance

Chapter 123 provides two distinct enforcement tracks. (1) Noncriminal disposition (§ 123-5B, under G.L. c.40 §21D): $100 first offense; $200 second offense; $300 third and subsequent offense (each day a separate offense). (2) As a separate, independent option, the Town may instead assess a civil penalty under § 123-5D of up to $5,000 per violation (each day a separate offense) — this is the higher figure reflected in Max Penalty, and does not conflict with the $300 noncriminal-disposition tier since it is an alternative enforcement mechanism, not an escalation of it. Certificate may also be suspended or revoked after a hearing; repeat violators may be disqualified from registration for up to three years.

Platform Requirements

Intermediaries (hosting platforms/agents) that collect rent must register with DOR, confirm the operator has registered, include the operator's Certificate of Registration number on returns, and file returns and remit taxes to DOR.

Compliance Checklist

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

1. Meet safety requirements. Provide contact information for the operator and a designated person available to address any issues at the short-term rental within two hours' notice. Property must have no outstanding building, sanitary, zoning, or fire code violations, orders of abatement, or stop-work orders. Subject to inspection of the short-term rental by the Board of Health upon reasonable notice, or without notice in the event of an imminent threat to public health or safety.
2. Obtain liability insurance. $1,000,000 minimum.
3. Apply for Short-Term Rental Certificate of Registration (Board of Health). Submit application + $250 fee.
4. Register for tax accounts. Set up lodging tax accounts with Massachusetts Department of Revenue (MassTaxConnect).
5. Display your permit number. Include your permit/license number in all listings and advertisements.
6. Collect and remit taxes. 11.7% (14.7% for professionally-managed short-term rentals subject to the 3% community impact fee) on all bookings.
7. Renew annually. $250 renewal fee.

Frequently Asked Questions

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

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Nantucket requires a short-term rental permit.

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

A short-term rental permit in Nantucket costs $250 per year.

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

No. Nantucket 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 Nantucket?

Nantucket 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 Nantucket?

Short-term rental stays in Nantucket are subject to a combined 11.7% in lodging taxes. This combines 5.7% State room occupancy excise + 6% Local option room occupancy excise + up to 3% Community impact fee (short-term rentals only). The host is responsible for collecting and remitting them.

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

Operating without a permit can cost up to $5,000.