Gulf Shores Short-Term Rental Regulations

Last verified: 2026-04-06
TL;DR
Gulf Shores requires Rental License ($45). Combined tax rate is 16%. No annual day limit.
Key Requirements at a Glance
Permit ✓ Required — Rental License ($45)
Primary Residence Not required
Annual Day Limit No limit
Tax Rate 16%
Max Penalty Not publicly specified
Insurance Not required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Rental License

FeeAmount
Initial cost$45
Renewal$45 / 1 year

This permit type does not require primary residence.

Application Process

Online via City of Gulf Shores Licensing Portal, or in-person at City Revenue Office (1905 W 1st St); rental safety inspection required

Tax Obligations

TaxRateAuthority
State Lodgings Tax 4% Alabama Department of Revenue
Baldwin County Lodgings Tax 2% Baldwin County
Local Lodgings Tax 10% City of Gulf Shores

Combined rate: 16% of gross rental income.

Filing: Monthly (standard); Quarterly (if liability < $2,400 annually); Biannual (if liability < $1,200 annually); Annual (if liability < $600 annually)

Rental Limits

Gulf Shores does not impose an annual cap on the number of nights you can rent.

Zoning & Restrictions

Check with local government

Insurance & Safety

Safety & Operating Requirements

Penalties for Non-Compliance

Not publicly specified

Compliance Checklist

Follow these steps to legally operate a short-term rental in Gulf Shores:

  1. Meet safety requirements. Rental safety inspections every 3 years.
  2. Apply for Rental License. Submit application + $45 fee.
  3. Register for tax accounts. Set up lodging tax accounts with Alabama Department of Revenue / City of Gulf Shores Revenue.
  4. Collect and remit taxes. 16% on all bookings.
  5. Renew annually. $45 renewal fee.

Official Sources

  1. Rental License | Gulf Shores, AL - Official Website
  2. Code of Ordinances | Gulf Shores, AL | Municode Library
  3. Lodgings Tax - Alabama Department of Revenue