State College Short-Term Rental Regulations

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Short-Term Rental License under Borough Code Chapter X (Licenses and Permits), Part I, Short-Term Rentals (§10-901 through §10-907), enacted by Ord. No. 2160 (6/30/2021) and amended by Ord. Nos. 2187, 2210, 2211, and 2242. A single license class applies borough-wide; there is no separate non-owner-occupied class because the license requires the property to be a principal residence (owner or tenant resident 8+ months/year) -- non-primary-residence short-term rentals are not eligible for licensing under this Part.

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

Application Process

Applicants must first obtain a Rental Housing Permit from Centre Region Code Administration (CRCA) before they may submit a Short-Term Rental License application; the license application itself is filed annually with the Borough Planning Department through the Rentalscape online portal at least 30 days before starting short-term rental use, together with a deed (or LLC membership list), two documents proving principal residence, a parking plan, proof of $100,000 liability insurance, and (if applicable) the tenant's lease, plus the $450 fee due at submission.

Tax Obligations

Combined rate: 11% of gross rental income.

Collection: Operators (or their booking agent, if the platform confirms it collects and remits) must self-collect the 6% PA hotel occupancy tax from guests and remit it via myPATH under a Sales, Use, and Hotel Occupancy Tax License, and separately collect and remit the 5% Centre County Hotel Room Tax to the Centre County Treasurer's Office using the county's Hotel Tax Filing Form, after first registering with the County via the Hotel Room Tax Property Registration Form.

Filing: Centre County Hotel Room Tax returns are due on the same reporting deadline as the operator's Pennsylvania state sales tax return (monthly, quarterly, or semi-annually depending on the operator's assigned PA sales-tax filing frequency).

Rental Limits

State College limits short-term rentals to 120 days per year. Individual-stay rule: Fewer than 30 consecutive days per booking; a rental to the same person for 30 or more consecutive days falls outside the ordinance's definition of a short-term rental.

Zoning & Restrictions

Short-Term Rental License under Borough Code Chapter X (Licenses and Permits), Part I, Short-Term Rentals (§10-901 through §10-907), enacted by Ord. No. 2160 (6/30/2021) and amended by Ord. Nos. 2187, 2210, 2211, and 2242. A single license class applies borough-wide; there is no separate non-owner-occupied class because the license requires the property to be a principal residence (owner or tenant resident 8+ months/year) -- non-primary-residence short-term rentals are not eligible for licensing under this Part.: For a one-family dwelling containing a single accessory apartment, the owner or tenant meeting the principal-residence requirement must live in the one-family dwelling itself, not the apartment; short-term rental use is prohibited in the one-family dwelling if the resident occupies only the apartment. If the one-family dwelling is owner/tenant-occupied as a principal residence, the separate apartment may be used as a short-term rental without an occupant claiming it as a principal residence

Insurance & Safety

Insurance

Operators must maintain at least $100,000 minimum general liability coverage in insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• One off-street parking space per bedroom offered for short-term rental, each space at least 8 feet wide by 15 feet long
• Operator must maintain a 12-month activity log of rental nights, occupant counts per rental, and vehicles parked, available to the Borough on request and submitted with annual license renewal
• Operator must download and provide short-term rental platform activity data (e.g., from Airbnb/VRBO) to the Borough on request and at renewal

Penalties for Non-Compliance

First offense for operating/advertising without a license or without publishing the license number in advertisements: a warning letter with 14 days to apply for a license. Second and subsequent violations, and any other violation of the Part, are prosecuted before a Magisterial District Judge with a fine of not less than $300 nor more than $1,000 plus costs of prosecution; each day a violation continues is a separate offense. Licenses are also subject to suspension for nuisance/criminal violations once 10 or more offense points accumulate at the property within a rolling 12-month period.

Platform Requirements

The Short-Term Rental License number must be published in every print, digital, or internet advertisement and property listing in which the short-term rental is advertised, including on booking platforms such as Airbnb or VRBO. Failure to publish the license number results in a warning letter (first violation) then escalating fines (subsequent violations).

Compliance Checklist

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

1. Confirm eligibility. The property must be your primary residence. Investment properties are not eligible.
2. Meet safety requirements. One off-street parking space per bedroom offered for short-term rental, each space at least 8 feet wide by 15 feet long. Operator must maintain a 12-month activity log of rental nights, occupant counts per rental, and vehicles parked, available to the Borough on request and submitted with annual license renewal. Operator must download and provide short-term rental platform activity data (e.g., from Airbnb/VRBO) to the Borough on request and at renewal.
3. Obtain liability insurance. $100,000 minimum general liability coverage minimum.
4. Apply for Short-Term Rental License under Borough Code Chapter X (Licenses and Permits), Part I, Short-Term Rentals (§10-901 through §10-907), enacted by Ord. No. 2160 (6/30/2021) and amended by Ord. Nos. 2187, 2210, 2211, and 2242. A single license class applies borough-wide; there is no separate non-owner-occupied class because the license requires the property to be a principal residence (owner or tenant resident 8+ months/year) -- non-primary-residence short-term rentals are not eligible for licensing under this Part. Submit application + $450 fee.
5. Register for tax accounts. Set up lodging tax accounts with Pennsylvania Department of Revenue (state Sales, Use, and Hotel Occupancy Tax); Centre County Treasurer's Office (Centre County Hotel Room Tax).
6. Display your permit number. Include your permit/license number in all listings and advertisements.
7. Collect and remit taxes. 11% on all bookings.
8. Renew annually. $450 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in State College?

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

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

A short-term rental permit in State College costs $450 per year.

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

Yes. Every State College permit type requires the property to be your primary residence, so investment or non-owner-occupied rentals generally are not eligible.

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

State College limits short-term rentals to 120 days per year.

What taxes do you pay on a short-term rental in State College?

Short-term rental stays in State College are subject to a combined 11% in lodging taxes. This combines 6% Pennsylvania Hotel Occupancy Tax + 5% Centre County Hotel Room Tax. The host is responsible for collecting and remitting them.

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

First offense for operating/advertising without a license or without publishing the license number in advertisements: a warning letter with 14 days to apply for a license.