| Rule | Details |
|---|---|
| Regulatory Status | Restricted — rules apply |
| Permit / License Required | Yes — an STR/business license from the Town of Telluride is required before advertising; the license number must appear in all advertising. |
| Tax Rate | Reported total ~10.8% (Colorado state 2.9%, San Miguel County 3.4%, Town of Telluride 4.5%), plus a 2% Town Lodgers' Tax and affordable-housing/SMART |
| Night / Day Cap | In Residential Zone Districts: STRs capped at up to 3 stays per year with a cumulative maximum of 29 nights per year. Non-residential zones generally |
| Minimum Stay | STR period defined as 1–29 consecutive days (under 30 days). Long-term (30+ days) allowed town-wide but limited to 3 rentals/year. |
| Permit Fee | Town business license reported at ~$100/year; STR permit fees reported ranging ~$500–$1,200/year by category/size (per industry sources); context of a |
| Penalties | Violations may be prosecuted as misdemeanors with fines up to $1,000 per offense and up to 90 days imprisonment; each day is a separate offense. |
| Primary Residence Required | No — but permit categories distinguish Primary Residence permits (lower cost) from Investment Property permits. |
| Occupancy Limit | Per industry reporting, residential zones limit occupancy to ~2 guests per bedroom plus 2 additional, max ~10 people (verify with Town). |
Short-term rentals in Telluride, Colorado are allowed but subject to significant restrictions under local regulations as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes — an STR/business license from the Town of Telluride is required before advertising; the license number must appear in all advertising.. The associated permit fees are Town business license reported at ~$100/year; STR permit fees reported ranging ~$500–$1,200/year by .
Short-term rental operators in Telluride should be aware of these tax obligations: Reported total ~10.8% (Colorado state 2.9%, San Miguel County 3.4%, Town of Telluride 4.5%), plus a 2% Town Lodgers' Tax and affordable-housing/SMART components; state+county combined ~6.22%.. Yes — local sales tax number and excise tax number required before collecting/remitting; Town taxes paid monthly via Rentalscape and state/county via .
Key operational rules for vacation rental hosts in Telluride include: Primary residence requirement: No — but permit categories distinguish Primary Residence permits (lower cost) from Investment Property permits.. Rental day cap: In Residential Zone Districts: STRs capped at up to 3 stays per year with a cumulative maximum of 29 nights per year. No. Occupancy limit: Per industry reporting, residential zones limit occupancy to ~2 guests per bedroom plus 2 additional, max ~10 people (ve. Minimum stay: STR period defined as 1–29 consecutive days (under 30 days). Long-term (30+ days) allowed town-wide but limited to 3 ren.
Zoning considerations for short-term rentals in Telluride: Residential Zone Districts (Residential, Historic Residential, Hillside Transitional, Hillside Developing One/Two, West Hillside, Medium Density Residential) carry the 3-stay/29-night annual caps; STR. Density rules: Town-wide cap limiting STR licenses to the number issued as of election day (November 2, 2021). Ownership limit: no person/entity may hold financial i. Insurance: Unknown (not clearly specified in sources)..
Hosts who fail to comply with Telluride's short-term rental regulations may face enforcement action. Violations may be prosecuted as misdemeanors with fines up to $1,000 per offense and up to 90 days imprisonment; each day is a separate offense..
Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Telluride: Town uses automated systems to track activity via Airbnb/VRBO; license number must be displayed in all advertising. Platforms collect/remit some taxes but owner remains responsible..
Apply for your STR permit or registration directly through the official government portal.
Official Source ↗Airbnb and short-term rentals are legal in Telluride but subject to restrictions. Hosts must comply with local permit requirements and zoning rules. Owner representative on call 24/7 during occupancy; contact info filed with Town Clerk and posted inside the property. Random inspections plus an annual self-inspection required. Records of rental dat
Yes. Telluride requires the following for short-term rental operation: Yes — an STR/business license from the Town of Telluride is required before advertising; the license number must appear in all advertising..
Short-term rental hosts in Telluride are subject to the following tax obligations: Reported total ~10.8% (Colorado state 2.9%, San Miguel County 3.4%, Town of Telluride 4.5%), plus a 2% Town Lodgers' Tax and affordable-housing/SMART components; state+county combined ~6.22%..
Hosts who operate without proper permits in Telluride may face enforcement. Violations may be prosecuted as misdemeanors with fines up to $1,000 per offense and up to 90 days imprisonment; each day is a separate offense..
2026 renewals opened November 1, 2025, due January 1, 2026; late fees begin January 7, 2026. A new unified Bulk Notary Affidavit is required.
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