Short-Term Rental Rules in California (2025 Guide)

California lacks a single statewide short-term rental license. Compliance involves a local permit, local TOT registration, and state income tax reporting. As of 2025, platforms like Airbnb must collect and remit TOT to local governments under SB 346 (Chapter 751, Statutes of 2025), but direct-booking hosts still handle TOT themselves.

Quick Answer: How Short-Term Rentals Are Regulated in California

California does not have a statewide short-term rental licensing law. Each city and county establishes its own rules on permits, zoning, night caps, and owner-occupancy requirements. State law primarily governs how transient occupancy taxes are collected by platforms.

Compliance for California STR hosts involves two tiers:

Tier 1: Local Rules. Your city or county determines if you can operate, what permit you need, annual night limits, and if you must live on the property. Some cities ban unhosted rentals, while others have few restrictions.

Tier 2: State Obligations. California requires STR facilitators (e.g., Airbnb, Vrbo) to collect and remit transient occupancy taxes (TOT) to local governments on your behalf, per Government Code Chapter 4.6 (commencing with Section 50990), added by SB 346 (Chapter 751, Statutes of 2025). You are also responsible for paying state income tax on rental income.

Typical Compliance Checklist

1. Verify your property is in a zone that allows STRs.
2. Obtain a local business license if required by your city.
3. Apply for an STR or home-sharing permit from your city or county.
4. Register for a local TOT certificate with your city finance or tax department.
5. Post your permit number in your listing, as required by most jurisdictions and major platforms.
6. Confirm whether your booking platform remits TOT under SB 346, or if you must remit directly.
7. Report rental income to the California Franchise Tax Board.

What Changed Recently: SB 346 and the 2025 TOT Facilitator Law

SB 346 (Chapter 751, Statutes of 2025) adds Government Code Chapter 4.6 (§50990 et seq.) to state law, creating a uniform framework for TOT collection by platforms.

What SB 346 Actually Does

The law requires "short-term rental facilitators"—platforms that collect payment from guests—to collect TOT from guests and remit those taxes directly to the applicable local government. This law formalizes a statutory obligation where previously only a patchwork of local agreements existed.

• If you book through a major platform, the platform is legally required to collect TOT from your guests and send it to your city or county. You must still register with your local TOT authority, but the platform handles collection and remittance.
• If you take direct bookings through your own website or any channel where a facilitator does not collect payment, you remain responsible for collecting and remitting TOT.

Does SB 346 Preempt Local TOT Ordinances?

SB 346 supplements, not preempts, local TOT ordinances. Cities retain their existing TOT rates and registration requirements. The state law adds a mandatory collection mechanism for platforms. Consult your local finance department to confirm how your city is implementing the facilitator remittance process.

Enforcement Under SB 346

The statute establishes penalties for facilitators that fail to collect and remit TOT. Consult California Government Code §50990 et seq. for specific penalty provisions. Hosts who operate outside a facilitator platform and fail to remit TOT remain subject to local enforcement, including back taxes, interest, and fines under their city's TOT ordinance.

State-Level Legal Framework: What California Law Actually Requires

No Statewide STR License

California has not enacted a statewide short-term rental licensing statute, leaving regulation to local governments. The state provides a legal framework that shapes local authority.

Residential Tenancy Law and the STR Distinction

California's Civil Code governs residential tenancies. A stay of fewer than 30 consecutive days is generally treated as transient occupancy, not a tenancy. This means standard landlord-tenant protections, including just-cause eviction requirements, do not apply to STR guests. This distinction is the legal basis for separate STR regulations and the application of TOT.

The California Coastal Act

Properties in a coastal zone face an additional regulatory layer. The California Coastal Act gives the California Coastal Commission authority over land use in these zones. Some cities have faced Commission scrutiny when STR ordinances restrict coastal access. If your property is in a coastal zone, check with both your local planning department and the California Coastal Commission.

State Fire and Building Code Requirements

California law imposes baseline safety obligations on all residential units used for transient occupancy:

• Smoke detectors are required under the California Health and Safety Code.
• Carbon monoxide detectors are required under the Health and Safety Code.
• Adequate egress must meet California Building Code standards.

City STR permit inspections typically check for these items, but the state requirements apply regardless of local inspection protocols.

AB 1308 and the Housing Accountability Act

AB 1308 (Chapter 509, Statutes of 2025) amended the Housing Accountability Act (Government Code §65589.5) and added Health and Safety Code §17970.3, focusing on residential building permits and inspections. The bill addresses compliance for general residential permitting processes. It does not appear to directly restrict a city's authority to limit STRs through local ordinance. Consult a California land use attorney if you believe a local STR ban may conflict with state housing law.

State Income Tax

Rental income from STRs is taxable California income. Report it on your California return consistent with Franchise Tax Board guidance. Allowable deductions may include prorated mortgage interest, property taxes, maintenance, and platform fees. Consult the California Franchise Tax Board for rental income reporting rules.

Local Permit Requirements: City-by-City Comparison

Rules change frequently. This table is a starting point. Verify current requirements directly with each city's enforcement agency before listing.

Key City Details

Los Angeles operates under its Home-Sharing Ordinance. You must register your primary residence. Unhosted rentals are capped at 120 nights per calendar year. Hosted rentals have no night cap. Registration is required through the LA City Planning portal, and the registration number must appear in your listing.

San Francisco requires host registration with the Office of Short-Term Rentals under city ordinance. The property must be your primary residence. Unhosted rentals are capped at 90 nights per year. Hosted rentals have no cap. The city actively cross-references listings against its registration database.

Santa Monica has one of the most restrictive regimes. Under its municipal code, unhosted rentals are banned. Only home-sharing (host present during the entire stay) is permitted in the host's primary residence. Enforcement is active and fines are substantial.

Palm Springs requires a vacation rental permit under its municipal code. There is no owner-occupancy requirement in most zones. However, enforcement on noise, parking, and trash violations is aggressive and can lead to permit revocation.

San Diego uses a tiered permit system. Tier 1 covers whole-home rentals for fewer than 20 nights per year. Tier 2 covers whole-home rentals for 20 or more nights per year and is subject to a citywide permit cap. Tier 3 covers hosted home-sharing. Confirm current tier availability with San Diego Development Services.

Irvine and Calabasas effectively prohibit STRs through zoning restrictions. If your city is not listed here, check your municipal code's zoning chapter for "short-term rental," "vacation rental," or "transient occupancy" definitions.

Transient Occupancy Tax (TOT): What Hosts Owe and How to Pay

TOT is a local tax on stays of fewer than 30 consecutive days, collected from the guest and remitted to the local government.

Typical TOT Rates

TOT rates across California's major STR markets generally range from 10% to 15% of gross rental revenue. For example, rates are approximately 14% in Los Angeles and San Francisco, 10.5% in San Diego, and 13.5% in Palm Springs. Rates are subject to change by city council action. Verify the current rate with your local finance department.

How SB 346 Changes the Collection Mechanics

Under Government Code §50990 et seq. (SB 346, Chapter 751, Statutes of 2025), platforms qualifying as short-term rental facilitators must collect TOT from guests and remit it to the local government. For most hosts on major platforms, this process is automatic.

SB 346 does not eliminate your obligation to register with your local TOT authority. Most cities require hosts to hold a TOT certificate even if a platform remits on their behalf. Failure to register can result in fines.

Direct Bookings: You Are Still Responsible

If you accept bookings through any channel where a facilitator is not processing the payment, you must:

1. Collect TOT from the guest at the applicable local rate.
2. Remit it to your local finance or tax department on the required schedule (typically monthly or quarterly).
3. Maintain records of all transactions.

Penalties for Non-Remittance

Consequences for non-remittance typically include back taxes, interest (often 1% to 1.5% per month), and penalty assessments. Some cities also pursue permit revocation for TOT non-compliance.

State Income Tax

Rental income is taxable in California. Report gross rental income and deduct allowable expenses. Consult the Franchise Tax Board for guidance on rental income reporting.

Common Compliance Pitfalls and Enforcement Risks

Operating Without a Permit

Cities like Los Angeles and Palm Springs cross-reference active listings against their permit databases. Listing without a permit can result in a notice of violation, fines, and a bar on future registration.

Violating Owner-Occupancy or Primary-Residence Requirements

This is a common violation in San Francisco and Los Angeles. Cities may audit utility records, voter registration, and driver's license addresses to verify primary residence claims.

Exceeding Annual Night Caps

Los Angeles's 120-night unhosted cap resets each calendar year. Hosts who do not track nights accurately risk exceeding the cap, which is a permit violation.

Failing to Post Your Permit Number

Most cities with registration systems require the permit number to appear in every listing. Major platforms may remove or suppress listings that lack a required permit number.

Noise, Parking, and Trash Complaints

Some cities, particularly resort communities like Palm Springs, have "three-strikes" rules where repeat substantiated complaints can trigger permit revocation.

HOA and CC&R Restrictions

State law does not preempt private HOA bans on short-term rentals. California Civil Code allows HOAs to prohibit STRs through their CC&Rs. Review your HOA governing documents before listing. An HOA violation can result in fines and legal action, regardless of city permit status.

Coastal Commission Enforcement

The California Coastal Commission has enforcement authority under the Public Resources Code for unpermitted activity in coastal zones, which can include STRs that affect coastal access. If your property is in a coastal zone, verify whether your operation requires a coastal development permit.

Platform Delisting Risk

Platforms have agreements with many California cities to enforce local registration. If your city requires a permit number and you do not provide one, your listing can be removed.

Next Steps: How to Get Compliant and Who to Contact

Step-by-Step Compliance Checklist

1. Check local zoning. Use your city's zoning map to confirm STRs are a permitted use for your parcel. Search your municipal code for "short-term rental" or "vacation rental."
2. Apply for your STR permit. Submit the application to your city planning or finance department with all required documentation.
3. Register for a TOT certificate. Contact your local finance or tax department to register, even if a platform will remit the tax.
4. Add your permit number to your listing. Do this before going live.
5. Confirm your platform's TOT collection status. Verify in your host dashboard that the platform is collecting and remitting TOT for your jurisdiction.
6. Set up direct-booking TOT remittance. If you accept bookings outside a facilitator, establish an account with your local finance department for TOT remittance.

Key State Contacts

• California Franchise Tax Board (state income tax): ftb.ca.gov
• California Coastal Commission (coastal zone questions): coastal.ca.gov

Key Local Contacts

• Los Angeles City Planning (STR portal): planning.lacity.gov/home-sharing
• San Francisco Office of Short-Term Rentals: shorttermrentals.sfgov.org
• San Diego Development Services: sandiego.gov/development-services
• Palm Springs Finance Department: palmspringsca.gov/government/departments/finance

Finding Your Local TOT Rate and Registration Portal

The California State Association of Counties (CSAC) maintains a directory of county contacts at counties.org. For city information, search your city's official website for "transient occupancy tax" or call the finance department.

When to Consult a Professional

Hire a California real estate attorney or CPA if you are:

• Operating multiple STR units.
• Located in a coastal zone.
• Facing an HOA dispute over STRs.
• Unsure about primary residence qualifications.
• Receiving a notice of violation or audit.

Monitoring Future Regulatory Changes

• Sign up for your city council's agenda notifications.
• Monitor California Legislative Information at leginfo.legislature.ca.gov for STR-related bills.
• Check your platform's host resource center for updates.

The facilitator remittance requirements under Government Code §50990 et seq. (SB 346, Chapter 751, Statutes of 2025) are now law. Local agencies are still establishing procedures for receiving these funds. Confirm the current implementation status with your local finance department.