Racine Short-Term Rental Regulations

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Permit & Licensing

Tourist Rooming House Permit (City of Racine Public Health Dept, annual) + Room Tax Permit…

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

Zoning restriction: Permitted only as an accessory use in residential zoning districts (confirmed R1 and R4), subject to the primary-residence (owner-occupied) condition; not a permitted zoning use for whole-home non-owner-occupied operation.

Application Process

Obtain WI Seller's Permit if required; submit Tourist Rooming House Permit Application and Room Tax Permit application to the Dept of Customer Service with fee-schedule payment; contact the Environmental Health Division to schedule a required property inspection. Inspection and permit approval must be completed before renting begins.

Tax Obligations

Combined rate: 13.5% of gross rental income.

Collection: Self-remit; innkeepers must obtain a Room Tax Permit from the City Treasurer and file monthly returns

Filing: Monthly; due by the 20th of the following month

Rental Limits

Racine does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Tourist Rooming House Permit (City of Racine Public Health Dept, annual) + Room Tax Permit (Dept of Customer Service, City Clerk & Treasurer): Permitted only as an accessory use in residential zoning districts (confirmed R1 and R4), subject to the primary-residence (owner-occupied) condition; not a permitted zoning use for whole-home non-owner-occupied operation

Insurance & Safety

Insurance

Racine 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

• Property inspection by the Environmental Health Division required before permit approval; must be completed prior to renting
• Sleeping quarters must be located inside a principal structure and provide proper exiting
• Written or electronic guest register required (name, contact info, arrival/departure dates, number of guests), retained for at least 3 years
• Guest and resident vehicles must be parked on a hard surface (concrete, asphalt, or paver stones)

Penalties for Non-Compliance

• $150 municipal court forfeiture for operating without a required permit (Sec. 22-576)
• Permit suspension, revocation, or nonrenewal for violations of permit conditions (Sec. 22-580)
• Room tax: 25% of prior-year room tax due or $5,000, whichever is less, penalty for delinquent returns, plus 12% annual interest (Sec. 90-60)

Unpaid room tax bears interest at 12% per annum from the due date until paid

Market Snapshot

Demand context for Racine from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

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

1. Confirm eligibility. The property must be your primary residence. Investment properties are not eligible.
2. Meet safety requirements. Property inspection by the Environmental Health Division required before permit approval; must be completed prior to renting. Sleeping quarters must be located inside a principal structure and provide proper exiting. Written or electronic guest register required (name, contact info, arrival/departure dates, number of guests), retained for at least 3 years. Guest and resident vehicles must be parked on a hard surface (concrete, asphalt, or paver stones).
3. Apply for Tourist Rooming House Permit (City of Racine Public Health Dept, annual) + Room Tax Permit… Submit application + $490 fee.
4. Register for tax accounts. Set up lodging tax accounts with City of Racine Treasurer.
5. Collect and remit taxes. 13.5% on all bookings.
6. Renew annually. $210 renewal fee.

Frequently Asked Questions

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

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Racine requires a Tourist Rooming House Permit.

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

A Tourist Rooming House Permit in Racine costs $490 per year. Renewal is $210 per year.

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

Yes. Every Racine 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 Racine?

Racine 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 Racine?

Short-term rental stays in Racine are subject to a combined 13.5% in lodging taxes. This combines 8% Racine Room Tax (Transient Lodging Tax) + 5% Wisconsin State Sales Tax + 0.5% Racine County Sales Tax. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.

What are the penalties for short-term rental violations in Racine?

Penalties run up to $5,000 (or 25% of prior-year room tax due, whichever is less, for delinquent room tax) (see the Penalties section for the full schedule).