Taos Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental Permit

This permit type does not require primary residence. Zoning restriction: Allowed only in zoning districts RA-20, RA-10, RA-6, RA, R-1, R-2, R-3, R-4, R-6, R-14, C-1 and C-2 (conditional use permit required in some districts). Prohibited in Historic Districts, Historic and Hotel Overlay Zones, and the Central Business District (CBD).

Application Process

Apply online via the Town of Taos system (taosgov.com) with the Code Administrator; a separate application is required for each permit. The number of permits issued each year may not exceed 120, issued first-come, first-served; once the cap is reached no new permits are issued until the count falls to 120 or less. New applications are due by September 30 for a permit beginning October 1. At least 10 days before applying, the applicant must mail notice to any HOA, to property owners within 200 feet of the boundary, and to the Town. Application requires proof of life safety/building code inspections (Certified Building Official, NM Licensed Architect or Engineer) and a Certificate of Occupancy. Renewals are due by November 30. Permits are not transferable to another person or property.

Tax Obligations

Combined rate: ~14.175% of gross rental income.

Collection: The owner/operator is responsible for collecting and remitting the Lodger's Tax and for paying gross receipts tax; the Town states it is up to the individual host to collect the necessary taxes. Online payment of Lodger's Tax is not available; hosts contact Town Customer Service for payment options.

Filing: Gross receipts tax is reported and remitted to the New Mexico Taxation and Revenue Department (via the TAP online system); filing frequency is determined by the Department based on revenue volume. Lodger's Tax is reported and transmitted to the Town when due.

Rental Limits

Taos does not impose an annual cap on the number of nights you can rent. Each individual stay must be under 30 days.

Occupancy & Density Limits

Overnight occupancy may not exceed twice the number of bedrooms (family members under age 15 not counted). Total occupancy at any time, including guests, may not exceed two times the overnight limit.

Zoning & Restrictions

Allowed only in RA-20, RA-10, RA-6, RA, R-1, R-2, R-3, R-4, R-6, R-14, C-1 and C-2 zones; conditional use permit required in some. Prohibited in Historic Districts, Historic and Hotel Overlay Zones, and the Central Business District. Not allowed in units sharing a common wall, floor or ceiling (apartments, duplexes, townhomes, multi-dwelling). Citywide cap of 120 permits. Applicants must mail notice to property owners within 200 feet.

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

• Operable smoke detector required
• Carbon monoxide detector required
• Fire extinguisher required
• Other safety features as determined by the Fire Marshal
• Proof of satisfactory life safety and building code inspections by a Certified Building Official, NM Licensed Architect or NM Licensed Engineer
• Certificate of Occupancy required
• Rental packet with host/local responsible party contact and safety information provided to guests

Penalties for Non-Compliance

Maximum penalty: Petty misdemeanor penalty per NMSA 1978 Section 3-17-1(C); permit revocation and one-year ineligibility for a new permit.

Platform Requirements

A valid Short-Term Rental Unit permit number must be included in all advertising of the unit, including listings on all online marketplace platforms.

Compliance Checklist

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

1. Meet safety requirements. Operable smoke detector required. Carbon monoxide detector required. Fire extinguisher required. Other safety features as determined by the Fire Marshal. Proof of satisfactory life safety and building code inspections by a Certified Building Official, NM Licensed Architect or NM Licensed Engineer. Certificate of Occupancy required. Rental packet with host/local responsible party contact and safety information provided to guests.
2. Obtain liability insurance. $1,000,000 minimum.
3. Apply for Short-Term Rental Permit. Submit application + $875 fee.
4. Register for tax accounts. Set up lodging tax accounts with New Mexico Taxation and Revenue Department (gross receipts tax); Town of Taos (Lodger's Tax).
5. Display your permit number. Include your permit/license number in all listings and advertisements.
6. Collect and remit taxes. ~14.175% on all bookings.
7. Renew annually. $875 renewal fee.

Frequently Asked Questions

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

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Taos requires a Short-Term Rental Permit.

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

A Short-Term Rental Permit in Taos costs $875 per year.

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

No. Taos 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 Taos?

Taos 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 Taos?

Short-term rental stays in Taos are subject to a combined ~14.175% in lodging taxes. This combines 5% Town of Taos Lodger's Tax + 9.175% New Mexico Gross Receipts Tax (Taos City, location code 20-126). The host is responsible for collecting and remitting them.