Isle of Palms Short-Term Rental Regulations
| Permit | ✓ Required — Short-Term Rental Business License ($450) |
| Primary Residence | Not required |
| Annual Day Limit | No limit — 3 months or fewer per stay |
| Tax Rate | 14% |
| Max Penalty | $500 per offense (and/or up to 30 days imprisonment) |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Short-Term Rental Business License
| Fee | Amount |
|---|---|
| Initial cost | $450 |
| Renewal | $450 / 1 year |
This permit type does not require primary residence.
Application Process
Apply through the City's Short-Term Rental Application (administered by the Building, Planning and Zoning Department, City Hall, 1207 Palm Boulevard). Applicants must complete the Rental Revenue Affidavit with year-end revenue statements, submit the Fire Safety Acknowledgment Form, and acknowledge the Short-Term Residential Business License Disclosure.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| State Sales Tax | 5.0% | State of SC |
| Local Option Sales Tax | 1.0% | State of SC |
| Charleston County Transportation Tax | 1.0% | State of SC |
| State Accommodations Tax | 2.0% | State of SC |
| Charleston County School Tax | 1.0% | State of SC |
| County of Charleston Accommodations Tax | 2.0% | Charleston County |
| City of Isle of Palms Accommodations Tax | 1.0% | Charleston County |
| City of Isle of Palms Beach Preservation Fee | 1.0% | Charleston County |
Combined rate: 14% of gross rental income.
Collection: Self-remit; an owner may designate an agent to collect and remit the taxes, but the property owner is ultimately responsible for proper payment.
Filing: State/local Accommodations Tax is filed and paid electronically via MyDORWAY, due by the 20th of the month following the end of the filing period; the City STR license fee is due annually by April 30.
Rental Limits
Isle of Palms does not impose an annual cap on the number of nights you can rent. Each individual stay must be 3 months or fewer per stay.
Occupancy & Density Limits
Maximum overnight occupancy is generally two people per bedroom plus two, up to a maximum of twelve for new construction (children under two excluded). At no time may the total exceed 40 persons or twice the maximum overnight occupancy, whichever is less.
Zoning & Restrictions
Short-term rentals are permitted anywhere within the City, regulated under Title 5 (Planning and Development), Chapter 4 (Zoning), Article 9.
Insurance & Safety
Insurance
Isle of Palms 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
- Fire Safety Acknowledgment Form required for both new licenses and renewals
- City-provided written notice about ordinances impacting tenants must be posted inside the residence within 15 feet of the main entrance
- City-provided, weatherproofed noise ordinance notice must be posted on any exterior deck, porch, patio, pool or other gathering area
Penalties for Non-Compliance
A license may be revoked based on founded complaints of unlawful activity; failure to comply with tax provisions may result in monetary penalties and interest charges. It is unlawful to destroy, hide, obstruct, conceal or remove required posted notices.
Compliance Checklist
Follow these steps to legally operate a short-term rental in Isle of Palms:
- Meet safety requirements. Fire Safety Acknowledgment Form required for both new licenses and renewals. City-provided written notice about ordinances impacting tenants must be posted inside the residence within 15 feet of the main entrance. City-provided, weatherproofed noise ordinance notice must be posted on any exterior deck, porch, patio, pool or other gathering area.
- Apply for Short-Term Rental Business License. Submit application + $450 fee.
- Register for tax accounts. Set up lodging tax accounts with South Carolina Department of Revenue.
- Collect and remit taxes. 14% on all bookings.
- Renew annually. $450 renewal fee.
Frequently Asked Questions
- Do you need a permit to run an Airbnb in Isle of Palms?
- Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Isle of Palms requires a Short-Term Rental Business License.
- How much does a short-term rental permit cost in Isle of Palms?
- A Short-Term Rental Business License in Isle of Palms costs $450 per year.
- Does Isle of Palms require a short-term rental to be your primary residence?
- No. Isle of Palms 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 Isle of Palms?
- Isle of Palms 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 Isle of Palms?
- Short-term rental stays in Isle of Palms are subject to a combined 14% in lodging taxes. This combines 5.0% State Sales Tax + 1.0% Local Option Sales Tax + 1.0% Charleston County Transportation Tax + 2.0% State Accommodations Tax + 1.0% Charleston County School Tax + 2.0% County of Charleston Accommodations Tax + 1.0% City of Isle of Palms Accommodations Tax + 1.0% City of Isle of Palms Beach Preservation Fee. The host is responsible for collecting and remitting them.
- What happens if you run a short-term rental without a permit in Isle of Palms?
- Operating without a permit can cost up to $500 per offense (and/or up to 30 days imprisonment).
Tools for Short-Term Rental Hosts
AdServices that help hosts handle the legal, management, pricing, and cleaning side of a short-term rental.