| Rule | Details |
|---|---|
| Regulatory Status | Permitted with registration |
| Permit / License Required | Yes — three permits/licenses required before advertising or operating: (1) Tourist Rooming House (TRH) License from Public Health Madison & Dane Count |
| Tax Rate | City of Madison transient room tax: 10% (on stays <30 days). Wisconsin state sales tax: 5% + Dane County sales tax: 0.5% = 5.5% combined sales tax. To |
| Minimum Stay | 1 night minimum under standard ZTRHP1 permit. Hosts who exclusively advertise/accept stays of 7–29 consecutive nights may qualify for alternate zoning |
| Permit Fee | PHMDC TRH License: $535 initial fee (includes $375 pre-inspection fee); annual renewal ~$160. City ZTRHP1 Zoning Permit: $300 one-time non-refundable |
| Penalties | Not specified in available source |
| Primary Residence Required | Yes — the STR must be the host's primary dwelling (true, fixed, and permanent home for at least 183 days/calendar year) at time of operation AND for t |
| Occupancy Limit | Maximum guests = 2 × number of legal bedrooms, capped at 12 people total. Children under 12 are not counted toward the cap. A legal bedroom must have |
Short-term rental operations in Madison, Wisconsin 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 — three permits/licenses required before advertising or operating: (1) Tourist Rooming House (TRH) License from Public Health Madison & Dane County (PHMDC); (2) City of Madison Finance Department . The associated permit fees are PHMDC TRH License: $535 initial fee (includes $375 pre-inspection fee); annual renewal ~$160. City Z.
Short-term rental operators in Madison should be aware of these tax obligations: City of Madison transient room tax: 10% (on stays <30 days). Wisconsin state sales tax: 5% + Dane County sales tax: 0.5% = 5.5% combined sales tax. Total combined effective rate: ~15.5%. Airbnb collects and remits both room tax and sales tax for plat. Yes — hosts must: (a) obtain a Wisconsin Seller's Permit from the Wisconsin Dept. of Revenue (waived if listing exclusively on Airbnb/VRBO); (b) regis.
Key operational rules for vacation rental hosts in Madison include: Primary residence requirement: Yes — the STR must be the host's primary dwelling (true, fixed, and permanent home for at least 183 days/calendar year) . Occupancy limit: Maximum guests = 2 × number of legal bedrooms, capped at 12 people total. Children under 12 are not counted toward the c. Minimum stay: 1 night minimum under standard ZTRHP1 permit. Hosts who exclusively advertise/accept stays of 7–29 consecutive nights ma.
Zoning considerations for short-term rentals in Madison: TRHs are permitted in all residential dwelling units city-wide, but only within the unit that is the operator's primary residence. Certain zones (particularly near UW campus and historic neighborhoods. Density rules: 190-unit cap on active short-term rental licenses. Insurance: Proof of insurance is strongly recommended and referenced as part of documentation for renewal; host.
Hosts who fail to comply with Madison's short-term rental regulations may face enforcement action. Not specified in available source.
Platform obligations for services like Airbnb, VRBO, and Booking.com operating in Madison: Platforms (Airbnb, VRBO) collect and remit Wisconsin state sales tax (5.5%) and City of Madison room tax (10%) on behalf of hosts for bookings made through their platforms. Hosts using other booking c.
Apply for your STR permit or registration directly through the official government portal.
Official Source ↗Yes, Airbnb and short-term rentals are legal in Madison with proper registration and permits. Madison has enacted a 190-unit cap limiting the number of active short-term rental licenses in the city. Existing permits may be grandfathered, but new licenses are limited to reach this cap.
Yes. Madison requires the following for short-term rental operation: Yes — three permits/licenses required before advertising or operating: (1) Tourist Rooming House (TRH) License from Public Health Madison & Dane County (PHMDC); (2) City of Madison Finance Department Room Tax Registration; (3) City of Madison Zoning Tourist Rooming House Permit (ZTRHP1) from Buildin.
Short-term rental hosts in Madison are subject to the following tax obligations: City of Madison transient room tax: 10% (on stays <30 days). Wisconsin state sales tax: 5% + Dane County sales tax: 0.5% = 5.5% combined sales tax. Total combined effective rate: ~15.5%. Airbnb collects and remits both room tax and sales tax for platform bookings; hosts using other channels (VRBO di.
Hosts who operate without proper permits in Madison may face enforcement. Not specified in available source.
['Hard cap of 190 active short-term rental units citywide', 'Vote passed 4-2 indicating some council opposition', 'Designed to address housing availability concerns']
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