Williamsburg Short-Term Rental Regulations

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Permit & Licensing

Short-Term Rental Special Exception (Board of Zoning Appeals)

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

Application Process

In-person special exception application to the Board of Zoning Appeals; requires title/ownership certification, $500,000 liability insurance, a property management plan, HOA/POA written confirmation (if applicable), and a business license from the Commissioner of the Revenue (due within 30 days after approval, before occupancy)

Tax Obligations

Combined rate: 14% + $2/night of gross rental income.

Collection: Accommodations provider collects tax on direct bookings; accommodations intermediary collects and remits tax on bookings made through it

Filing: Monthly

Rental Limits

Williamsburg limits short-term rentals to 104 days per year.

Occupancy & Density Limits

No more than two transient visitors may occupy the rented room at the same time, excluding minor children of the transient occupants

Zoning & Restrictions

Short-term rental of a room to transient visitors is allowed only as a business accessory use in owner-occupied (or, under Sec. 21-605.3, lessee-occupied) single-family detached dwellings throughout residential districts, contingent on a special exception approved by the Board of Zoning Appeals. Only one room in the principal dwelling may be rented, no more than two transient visitors may occupy that room at a time, event rentals and meal service are prohibited, and a property already used as a residential rental property may not also be used as a short-term rental.

Insurance & Safety

Insurance

Operators must maintain at least $500,000 in liability insurance covering the property's use as a short-term rental.

Safety & Operating Requirements

• General liability insurance policy in the owner's name covering the rental, with coverage of not less than $500,000.00, must remain in place at all times while offered for short-term rental
• Property management plan for managing the rental and minimizing impact on neighboring properties, submitted to the Planning Department for review and approval
• Copy of Chapter 12 of the City Code (noise ordinance) must be provided at the short-term rental dwelling

Penalties for Non-Compliance

• Special exception may be revoked for failure to comply with a required condition, or for more than three violations of related state/local laws
• Tax violation: Class 2 misdemeanor if unpaid tax is $1,000 or less
• Tax violation: Class 1 misdemeanor if unpaid tax exceeds $1,000

Platform Requirements

For short-term rentals booked through an accommodations intermediary (e.g. Airbnb, VRBO), the intermediary reports and remits Virginia sales tax on the entire transaction on its Virginia sales tax return.

Compliance Checklist

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

1. Confirm eligibility. The property must be your primary residence. Investment properties are not eligible.
2. Meet safety requirements. General liability insurance policy in the owner's name covering the rental, with coverage of not less than $500,000.00, must remain in place at all times while offered for short-term rental. Property management plan for managing the rental and minimizing impact on neighboring properties, submitted to the Planning Department for review and approval. Copy of Chapter 12 of the City Code (noise ordinance) must be provided at the short-term rental dwelling.
3. Obtain liability insurance. $500,000 minimum.
4. Apply for Short-Term Rental Special Exception (Board of Zoning Appeals). Submit application + $500 fee.
5. Register for tax accounts. Set up lodging tax accounts with City of Williamsburg Department of Finance.
6. Collect and remit taxes. 14% + $2/night on all bookings.
7. Renew annually. Contact city for renewal fee details.

Frequently Asked Questions

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

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

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

A short-term rental permit in Williamsburg costs $500 per year.

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

Yes. Every Williamsburg 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 Williamsburg?

Williamsburg limits short-term rentals to 104 days per year.

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

Short-term rental stays in Williamsburg are subject to a combined 14% in lodging taxes. This combines 7% Virginia Retail Sales and Use Tax (Historic Triangle rate) + 7% Williamsburg Transient Lodging Tax + $2.00/night Williamsburg Additional Transient Occupancy Tax (flat, Historic Triangle Marketing Fund). The host is responsible for collecting and remitting them.

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

Operating without a permit can cost up to $1,000 fine and/or 12 months confinement (Class 1 misdemeanor, tax violation).