New rules for short-term rental operators in Salt Lake City

For the first time, short-term rental (STR) operators in Salt Lake City, Utah, must obtain a license and follow other regulations according to a new STR ordinance. The law is designed to address concerns about housing availability and neighborhood nuisance issues as the number of STRs grows.

Key takeaways:

1. Salt Lake City now requires short-term rental licenses. Beginning July 1, 2026, operators must obtain a city license.
2. Short-term rental owners must comply with other new rules. The ordinance includes a two-night minimum stay, a 200-night annual rental cap, and restrictions on STR density in larger multifamily buildings.
3. Lodging tax compliance is still required. Hosts must understand when marketplaces such as Airbnb and Vrbo collect taxes on their behalf and when they’re responsible for collecting, filing, and remitting Utah lodging taxes themselves.

Under the law, STR operators are required to apply for a license to rent their home for periods of less than 30 days. The license costs $198, plus a per-unit fee of $342. Licenses aren’t transferrable, and only one license is allowed per property. Operators must include city-issued license numbers in advertisements or listings.

STR operators must also:

• Provide contact information for a person located in Salt Lake County who can be available 24 hours a day, seven days a week to respond to complaints. That person must arrive at the STR within two hours in case of emergency.
• Post a city-provided notice inside the STR.
• Comply with occupancy limits and safety, noise, garbage, and nuisance rules.
• Agree to allow property inspections.
• Provide at least one off-street parking spot for STR guests.

Other rules include:

• Guests must stay a minimum of two nights, a provision designed to prevent STRs being used for large parties that can disrupt neighborhoods.
• STRs can be rent out a maximum of 200 nights per year to prevent residential units from being used as full-time hotels.
• In buildings with more than 10 units, STRs are limited to a maximum of 10% of the units.
• Homeowners associations must approve STR operation for member properties.

Unlicensed STRs can be fined up to $1,000 every seven days. The city will not issue or renew licenses for properties involved in an unresolved or active nuisance citation. Licensed STRs violating regulations three times within a year can have their license suspended, and the city can revoke a license for properties with three consecutive suspensions.

STRs are generally prohibited in residential areas, but are allowed in several mixed-used zones, including downtown, Central City, the Granary, and major arterials and transit corridors.

The ordinance went into effect July 1, 2026, although the Salt Lake City Council is studying possible amendments.

Salt Lake City STRs are also subject to lodging taxes, which are administered by the state. Operators must register with the Utah State Tax Commission to receive a state tax ID number, collect lodging taxes from guests, and file lodging tax returns.

For tax purposes, Utah defines STRs as reservations of less than 30 consecutive days. Utah imposes transient room tax (TRT) on STR rental charges, including fees such as pet fees, damage fees, reservation fees, and cleaning fees. Some STR charges may also be subject to sales tax.

Guests are exempt from TRT if they pay directly for the accommodations and provide proof of exemption for:

• Federal government agencies
• Foreign diplomats with a U.S.-issued tax exemption
• Qualified religious and charitable organizations

In Utah, “marketplace facilitators” such as Airbnb and Vrbo are required to collect lodging taxes. Operators are still required to file lodging tax returns if a marketplace collects for them, but they don’t need to report transactions made through a marketplace. If taxes aren’t being collected for operators, such as when guests book directly rather than through a marketplace, hosts are responsible for collecting and remitting lodging taxes to tax authorities.

Avalara MyLodgeTax can help Utah STR hosts automate and simplify city and state lodging tax compliance, from registration to tax return filing. If you have tax questions related to Utah STR properties, drop us a line and we’ll get back to you with answers. See our vacation rental tax guide for more on lodging taxes in the state.

Do I need a license to operate a short-term rental in Salt Lake City?

Yes. As of July 1, 2026, anyone renting a property for fewer than 30 days must obtain a Salt Lake City short-term rental license, display the license number in listings, and comply with the city’s operating requirements.

What happens if I operate an unlicensed short-term rental?

The city can fine unlicensed operators up to $1,000 every seven days. Properties with unresolved nuisance violations may be denied a license, and repeated violations can result in license suspension or revocation.

Do Airbnb and Vrbo collect Utah lodging taxes for hosts?

In most cases, yes. Marketplace facilitators such as Airbnb and Vrbo are required to collect and remit applicable lodging taxes. However, hosts must still file lodging tax returns and are responsible for collecting and remitting taxes on bookings made outside a marketplace, such as direct reservations.