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Isle of Palms

South Carolina · United States
Active
Last updated: 2026-07-29  ·  Last verified: 2026-07-29  ·  Region: US

At a Glance — Isle of Palms Airbnb & STR Rules

RuleDetails
Regulatory StatusPermitted with registration
Permit / License RequiredYes
Tax RateSC State Sales Tax: 5% of gross rental receipts; SC State Accommodations Tax: 2% of gross rental receipts; Charleston County Accommodations Tax: appli
Minimum StayNo citywide minimum stay requirement identified. IOP defines STR broadly; any rental for any length of time requires a business license.
Permit FeeAnnual STR business license required; fee is based on prior-year gross rental income (graduated scale per City fee schedule). Fire Safety Acknowledgme
PenaltiesOperating without a valid business license is a code violation subject to fines and license denial. Specific penalty schedule available through Isle o
Occupancy LimitMaximum overnight occupancy: two people per bedroom plus two additional people, up to a maximum of 12 occupants (excluding children under age 2). Occu
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Isle of Palms Airbnb & Vacation Rental Regulation Overview

Isle of Palms Short-Term Rental Regulations Overview

Short-term rental operations in Isle of Palms, South Carolina are permitted under an active regulatory framework as of 2026. Hosts operating on Airbnb, VRBO, or other vacation rental platforms must obtain proper licensing: Yes. The associated permit fees are Annual STR business license required; fee is based on prior-year gross rental income (graduated scal.

Tax Requirements for Airbnb Hosts in Isle of Palms

Short-term rental operators in Isle of Palms should be aware of these tax obligations: SC State Sales Tax: 5% of gross rental receipts; SC State Accommodations Tax: 2% of gross rental receipts; Charleston County Accommodations Tax: applicable county rate; City of Isle of Palms local accommodations tax: applicable local rate. Residentia.

Hosting Rules and Restrictions in Isle of Palms

Key operational rules for vacation rental hosts in Isle of Palms include: Occupancy limit: Maximum overnight occupancy: two people per bedroom plus two additional people, up to a maximum of 12 occupants (excludi. Minimum stay: No citywide minimum stay requirement identified. IOP defines STR broadly; any rental for any length of time requires a b.

Zoning and Location Requirements in Isle of Palms

Zoning considerations for short-term rentals in Isle of Palms: All residential unit types (houses, condos, apartments, hotel rooms) may be licensed for STR use. No blanket prohibition on STRs in residential zones. A 2022 moratorium (Ordinance 2022-14) was a tempo. Density rules: No density cap currently in effect. A cap was considered and rejected, reinforcing Isle of Palms' commitment to preserving property rights. STR licens. Insurance: Yes.

Penalties for Non-Compliance in Isle of Palms

Hosts who fail to comply with Isle of Palms's short-term rental regulations may face enforcement action. Operating without a valid business license is a code violation subject to fines and license denial. Specific penalty schedule available through Isle of Palms Building, Planning, and Zoning Dept (843-8.

Platform Obligations in Isle of Palms

Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Isle of Palms: Airbnb and VRBO collect and remit state sales and accommodations taxes for bookings made through their platforms. Property owners remain ultimately responsible for all local and county taxes not colle.

Full Regulatory Details

Regulatory Status
Active
License / Registration
Yes
Tax Registration
Yes
Permit Fee
Annual STR business license required; fee is based on prior-year gross rental income (graduated scale per City fee schedule). Fire Safety Acknowledgment Form required for new licenses and renewals. Rental Revenue Affidavit required annually. Portable parking permits: up to 4 per calendar year available from Police Dept.
Occupancy Limit
Maximum overnight occupancy: two people per bedroom plus two additional people, up to a maximum of 12 occupants (excluding children under age 2). Occupancy is set based on bedroom count per applicable building/bedroom standards.
Tax Rate
SC State Sales Tax: 5% of gross rental receipts; SC State Accommodations Tax: 2% of gross rental receipts; Charleston County Accommodations Tax: applicable county rate; City of Isle of Palms local accommodations tax: applicable local rate. Residential rentals of 30 days or less (for Charleston County/IOP) or 90 days or less (for SC state) require collection and remittance. Non-primary-residence properties assessed at 6% of fair market value for property tax purposes (SC Code § 12-43-220).
Zoning Restrictions
All residential unit types (houses, condos, apartments, hotel rooms) may be licensed for STR use. No blanket prohibition on STRs in residential zones. A 2022 moratorium (Ordinance 2022-14) was a temporary pause to evaluate proposed regulations; the moratorium has since expired and the STR licensing program is actively operating. No density cap enacted as of available records.
Minimum Stay
No citywide minimum stay requirement identified. IOP defines STR broadly; any rental for any length of time requires a business license.
Density Rules
No density cap currently in effect. A cap was considered and rejected, reinforcing Isle of Palms' commitment to preserving property rights. STR license records actively tracked (IOP STRL Records as of 06/30/2026 available in city council documents).
Insurance Required
Yes
Platform Obligations
Airbnb and VRBO collect and remit state sales and accommodations taxes for bookings made through their platforms. Property owners remain ultimately responsible for all local and county taxes not collected by platforms. Annual rental revenue statements from all property managers and/or booking sites must be submitted to the city.
Compliance Notes
All property owners renting residential units for any length of time must obtain an Isle of Palms STR business license. The short-term rental ordinance specifies maximum overnight occupancy calculations. All personal property used to furnish rental units must be assessed and an annual report filed between January 1 and April 30 with Charleston County. State law (SC Code) governs property tax assessment for non-primary-residence rentals at 6% of FMV. SC Senate Bill S.442 (2025) applies statewide.
Effective Date
2007-01-01
Key Notes
Isle of Palms is one of the more permissive STR markets in the Charleston metro area, with no density cap and no prohibition on non-owner-occupied STRs. The city actively tracks STR licenses (IOP STRL Records as of 06/30/2026 show ongoing active licensing). Fire Safety Acknowledgment Form is mandatory for both new and renewal applications. Parking regulations apply (up to 4 portable parking permits/year).
Penalties
Operating without a valid business license is a code violation subject to fines and license denial. Specific penalty schedule available through Isle of Palms Building, Planning, and Zoning Dept (843-886-9912).
Additional Context
Isle of Palms is located approximately 12 miles from historic Charleston on a 7-mile barrier island. The STR license payment portal is available through SC.GOV. City contact: Building, Planning, and Zoning Dept, 1207 Palm Boulevard, Isle of Palms, SC 29451. STR data is tracked in city council documents showing active license counts as recently as June 30, 2026.
Sources
City of Isle of Palms – Rental Licenses Page: https://www.isleofpalms.gov/building-and-planning/rental-licenses
City of Isle of Palms – Building, Planning & Zoning: https://www.isleofpalms.gov/building-planning-and-zoning
IOP STR License Payment Portal (SC.GOV): https://ssl.sc.gov/checkout/IsleOfPalms/ShortTermRental.html
IOP Council Workshop Packet (06/30/2026 STR data): https://www.isleofpalms.gov/sites/default/files/uploads/agendas/ways-and-means-packet-7-14-26.pdf
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Frequently Asked Questions

Is Airbnb legal in Isle of Palms?

Yes, Airbnb and short-term rentals are legal in Isle of Palms with proper registration and permits. All property owners renting residential units for any length of time must obtain an Isle of Palms STR business license. The short-term rental ordinance specifies maximum overnight occupancy calculatio

Do you need a permit for Airbnb in Isle of Palms?

Yes. Isle of Palms requires the following for short-term rental operation: Yes.

What taxes apply to short-term rentals in Isle of Palms?

Short-term rental hosts in Isle of Palms are subject to the following tax obligations: SC State Sales Tax: 5% of gross rental receipts; SC State Accommodations Tax: 2% of gross rental receipts; Charleston County Accommodations Tax: applicable county rate; City of Isle of Palms local accommodations tax: applicable local rate. Residential rentals of 30 days or less (for Charleston Count.

What are the penalties for illegal Airbnb hosting in Isle of Palms?

Hosts who operate without proper permits in Isle of Palms may face enforcement. Operating without a valid business license is a code violation subject to fines and license denial. Specific penalty schedule available through Isle of Palms Building, Planning, and Zoning Dept (843-886-9912)..

What are the key STR compliance requirements in Isle of Palms?

Isle of Palms is one of the more permissive STR markets in the Charleston metro area, with no density cap and no prohibition on non-owner-occupied STRs. The city actively tracks STR licenses (IOP STRL Records as of 06/30/2026 show ongoing active licensing). Fire Safety Acknowledgment Form is mandatory for both new and renewal applications. Parking regulations apply (up to 4 portable parking permit

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