Short-Term Rental Regulations — Kentucky
Hosts in Louisville must obtain a permit before listing their property on platforms like Airbnb or VRBO. The permit fee is $250, renewable Annual. Louisville allows non-owner-occupied short-term rentals, giving investors and property managers more flexibility. There is no annual day cap on rentals in Louisville. An occupancy tax of 9.5% applies to all short-term rental income. Airbnb and VRBO collect and remit this tax automatically.
Day Limit Notes
Requires conditional use permit for non-owner occupied in residential zones.
⚠ Tax Notes
9.5% Transient Room Tax plus 6% State Sales Tax.
⚠ Prohibited Zones
Non-owner occupied heavily restricted in certain density-capped residential zones.
Do I need a permit to run an Airbnb in Louisville?
Yes. Louisville requires a permit to operate a short-term rental. The permit fee is $250 and must be renewed Annual. You must obtain this permit before listing your property on Airbnb, VRBO, or other platforms.
What is the occupancy tax rate for short-term rentals in Louisville?
Short-term rentals in Louisville are subject to a 9.5% occupancy tax. Airbnb and VRBO automatically collect and remit this tax on behalf of hosts — you do not need to handle it separately. 9.5% Transient Room Tax plus 6% State Sales Tax.
Can I rent out a property I don't live in as an Airbnb in Louisville?
Yes. Louisville allows non-owner-occupied short-term rentals, meaning you can list investment properties or second homes that you do not personally occupy.
How many days per year can I rent my property in Louisville?
Louisville does not impose an annual day cap on short-term rentals. You can rent your property for as many days as you choose, subject to other local regulations. Requires conditional use permit for non-owner occupied in residential zones.
Does Airbnb collect occupancy taxes in Louisville?
Yes. Airbnb and VRBO automatically collect and remit the 9.5% occupancy tax in Louisville on behalf of hosts. You do not need to separately collect or remit this tax — it is handled at the platform level.
Are there any prohibited zones for short-term rentals in Louisville?
Yes. Louisville prohibits short-term rentals in certain areas: Non-owner occupied heavily restricted in certain density-capped residential zones.. Always verify your property's zoning status with the local planning department before listing.
Do I need to register my short-term rental in Louisville?
Yes. Louisville requires short-term rental hosts to register their property with the city. This is separate from any permit requirement and typically involves providing property information and contact details to the local authority.
Official Source
Louisville City Government
Last verified: 2026-03-23 · Always confirm with your local government before listing.