Madison Short-Term Rental Regulations
| Permit | ✓ Required — Tourist Rooming House Permit — Owner-Occupied (Unlimited) ($300) — See below for other permit types |
| Primary Residence | ✓ Required |
| Annual Day Limit | 30 days–unlimited (varies by permit type) |
| Tax Rate | 15% |
| Max Penalty | $2,000 per day (doubled if permit revoked) |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
- Tourist Rooming House Permit — Owner-Occupied (Unlimited) — Your primary residence (12+ months) — no annual day limit ($300 first year, $100/year renewal)
- Tourist Rooming House Permit — Owner-Absent (30 Days/Year Max) — Your primary residence rented while you're away — strictly limited to 30 days/year ($300 first year, $100/year renewal)
Tourist Rooming House Permit — Owner-Occupied (Unlimited)
| Fee | Amount |
|---|---|
| Initial cost | $300 |
| Renewal | $100 / Annual |
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)
| Fee | Amount |
|---|---|
| Initial cost | $300 |
| Renewal | $100 / Annual |
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
| Tax | Rate | Authority |
|---|---|---|
| Wisconsin State Sales Tax | 5% | Wisconsin Department of Revenue |
| Madison Transient Room Tax | 10% | City of Madison Finance Department (Ordinance 4.21) |
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
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:
- 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)).
- 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.
- Apply for your STR permit. Submit application + $300 fee. See permit types above to determine which applies.
- Register for tax accounts. Set up lodging tax accounts with City of Madison Treasury.
- Collect and remit taxes. 15% on all bookings.
- Renew annually. $100 renewal fee.
Official Sources
- Short-Term Rentals | Building Inspection | City of Madison, WI
- Short-Term Rental Regulations | Building Inspection | City of Madison, WI
- Chapter 9 - Licenses and Permits (Section 9.29 Tourist Rooming Houses) | Code of Ordinances | Madison, WI | Municode Library
- Transient Room Tax | Finance | City of Madison, WI