Madison Short-Term Rental Regulations

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Permit & Licensing

Tourist Rooming House Permit — Owner-Occupied (Unlimited)

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

Tourist Rooming House Permit — Owner-Absent (30 Days/Year Max)

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

Application Process

Apply for Transient Room Tax Permit (Finance Dept) and Dane County LICHMD License first, then apply for ZTRHP Permit. In-person home inspection required before ZTRHP approval.

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

Tax Obligations

Combined rate: 15% of gross rental income.

Collection: Self-remit; hosts must apply for Transient Room Tax Permit and file quarterly returns

Filing: Quarterly; due dates: January 31, April 30, July 31, October 31

Rental Limits

Madison annual day limit: 30 days–unlimited (varies by permit type).

Occupancy & Density Limits

Lesser of twice the number of legal bedrooms or 12 people; children under 12 not counted

Zoning & Restrictions

Allowed citywide in residential and commercial zones with a Zoning Tourist Rooming House Permit (ZTRHP). Property must be the host's primary residence of 12+ months for unlimited rentals; non-primary properties limited to 30 days/year.

Insurance & Safety

Insurance

Madison 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

• Home inspection by Building Inspection staff before permit approval
• Verified photo ID required for operator and all property owners
• On-site guest registry required

Penalties for Non-Compliance

Maximum penalty: $2,000 per day (doubled if permit revoked).

Compliance Checklist

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

1. Determine your permit type. Madison has 2 permit types. Identify which applies to your property (Tourist Rooming House Permit — Owner-Occupied (Unlimited), Tourist Rooming House Permit — Owner-Absent (30 Days/Year Max)).
2. Meet safety requirements. Home inspection by Building Inspection staff before permit approval. Verified photo ID required for operator and all property owners. On-site guest registry required.
3. Apply for your STR permit. Submit application + $300 fee. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with City of Madison Treasury.
5. Collect and remit taxes. 15% on all bookings.
6. Renew annually. $100 renewal fee.

Frequently Asked Questions

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

Yes. Madison requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types. See the permit types above to find which applies to your property.

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

A short-term rental permit in Madison costs $300.

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

Yes. Every Madison 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 Madison?

Madison's annual rental limit depends on the situation: 30 days–unlimited (varies by permit type).

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

Short-term rental stays in Madison are subject to a combined 15% in lodging taxes. This combines 5% Wisconsin State Sales Tax + 10% Madison Transient Room Tax. The host is responsible for collecting and remitting them.

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

Operating without a permit can cost up to $2,000 per day (doubled if permit revoked).