Philadelphia Short-Term Rental Regulations
| Permit | ✓ Required — Limited Lodging Operator License ($150) — See below for other permit types |
| Primary Residence | Varies by permit type |
| Annual Day Limit | No limit |
| Tax Rate | 14.5% |
| Max Penalty | Not publicly specified |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
- Limited Lodging Operator License — Primary residence required ($150/year)
- Rental License (hotel designation) — No primary residence requirement ($69/year)
Limited Lodging Operator License
| Fee | Amount |
|---|---|
| Initial cost | $150 |
| Renewal | $150 / 1 year |
The property must be your primary residence. This means investment properties are not eligible for this permit type.
Rental License (hotel designation)
| Fee | Amount |
|---|---|
| Initial cost | $69 |
| Renewal | $69 / 1 year |
This permit type does not require primary residence.
Application Process
Apply online with Department of Licenses and Inspections (L&I). Requires Commercial Activity License and Zoning Permit for limited lodging use. Virtual inspection required before license issued and at renewal.
Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| City of Philadelphia Hotel Tax | 8.5% | City of Philadelphia |
| Pennsylvania State Hotel Occupancy Tax | 6% | Pennsylvania Department of Revenue |
Combined rate: 14.5% 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:
- Determine your permit type. Philadelphia has 2 permit types. Identify which applies to your property (Limited Lodging Operator License, Rental License (hotel designation)).
- 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).
- 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.
- Register for tax accounts. Set up lodging tax accounts with City of Philadelphia Department of Revenue.
- Collect and remit taxes. 14.5% on all bookings.
- 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 14.5% in lodging taxes. This combines 8.5% City of Philadelphia Hotel Tax + 6% Pennsylvania State Hotel Occupancy Tax. The host is responsible for collecting and remitting them.
- What happens if you run a short-term rental without a permit in Philadelphia?
- Booking agents must remove non-compliant listings within 5 business days of City notification.
Tools for Short-Term Rental Hosts
AdServices that help hosts handle the legal, management, pricing, and cleaning side of a short-term rental.