Philadelphia Short-Term Rental Regulations

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Permit & Licensing

Limited Lodging Operator License

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

Rental License (hotel designation)

This permit type does not require primary residence.

Application Process

Submit an application on a form established by the Department of Licenses and Inspections. The applicant must have a valid commercial activity license, no outstanding Title 4 violation notices for the property, and must provide confirmation of authority to operate the property, including satisfaction of zoning requirements.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 15.5% of gross rental income.

Collection: Self-remit (host/operator responsible for city hotel tax monthly)

Filing: Monthly

Rental Limits

Philadelphia does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

Maximum 3 people total (including owner and renters, excluding persons related by blood, marriage, life partnership, adoption, or foster-child status)

Zoning & Restrictions

Property must be zoned for limited lodging use (Zoning Permit required for limited lodging)

Insurance & Safety

Insurance

Philadelphia 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

• Smoke alarms in each bedroom
• Smoke alarms in hallway near bedrooms
• Smoke alarms on each floor including basement
• Carbon monoxide alarms within 15ft of bedroom entrance
• CO alarms centrally on wall or ceiling (not in front of bathroom door or within 5ft of cooking appliance)

Penalties for Non-Compliance

Booking agents must remove non-compliant listings within 5 business days of City notification

Platform Requirements

Booking agents (Airbnb, VRBO) must hold a Limited Lodging and Hotels Booking Agent License ($7,000 initial, $5,000 renewal). Must verify host license before listing. Must remove listings within 5 business days of City non-compliance notification.

Compliance Checklist

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

1. Determine your permit type. Philadelphia has 2 permit types. Identify which applies to your property (Limited Lodging Operator License, Rental License (hotel designation)).
2. Meet safety requirements. Smoke alarms in each bedroom. Smoke alarms in hallway near bedrooms. Smoke alarms on each floor including basement. Carbon monoxide alarms within 15ft of bedroom entrance. CO alarms centrally on wall or ceiling (not in front of bathroom door or within 5ft of cooking appliance).
3. Apply for your STR permit. Submit application. Fees vary by type: Limited Lodging Operator License $150; Rental License (hotel designation) $69. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with City of Philadelphia Department of Revenue.
5. Collect and remit taxes. 15.5% on all bookings.
6. Renew annually. Renewal fees vary by permit type ($150 / $69). See permit types above.

Frequently Asked Questions

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

Yes. Philadelphia 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 Philadelphia?

Permit costs in Philadelphia vary by type: Limited Lodging Operator License $150; Rental License (hotel designation) $69.

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

It depends on the permit type. At least one Philadelphia 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 Philadelphia?

Philadelphia 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 Philadelphia?

Short-term rental stays in Philadelphia are subject to a combined 15.5% in lodging taxes. This combines 8.5% City of Philadelphia Hotel Tax + 6% Pennsylvania State Hotel Occupancy Tax + 1% Philadelphia County Local Hotel Tax. The host is responsible for collecting and remitting them.

What are the penalties for short-term rental violations in Philadelphia?

Booking agents must remove non-compliant listings within 5 business days of City notification.