Key West Short-Term Rental Regulations
| Permit | ✓ Required — Business Tax Receipt (Transient Rental License) ($178) |
| Primary Residence | Not required |
| Annual Day Limit | No limit — 29 days or fewer per stay |
| Tax Rate | 11% |
| Max Penalty | 50% of taxes owed (for tax delinquency) per violation |
| Insurance | Not required |
New to short-term rentals? Jump to the compliance checklist →
Permit & Licensing
Business Tax Receipt (Transient Rental License)
| Fee | Amount |
|---|---|
| Initial cost | $178 |
| Renewal | $118-$300 (estimated range for transient rental Business Tax Receipt) / 1 year |
This permit type does not require primary residence.
Application Process
Obtain City of Key West Business Tax Receipt from Licensing Division. Also obtain State of Florida transient rental license. License pool is capped; properties without existing licenses may need to acquire a transferred license.
Tax Obligations
| Tax | Rate | Authority |
|---|---|---|
| Florida State Sales Tax | 6% | Florida Department of Revenue |
| Monroe County Tourist Development Tax | 5% | Monroe County Tax Collector |
Combined rate: 11% of gross rental income.
Collection: Self-remit. Monroe County Tourist Development Tax filed monthly with Monroe County Tax Collector by 1st of following month (delinquent after 20th). Florida state sales tax filed with Florida Dept. of Revenue.
Filing: Monthly. Monroe County TDT returns due by 1st of following month (delinquent after 20th). Returns required even during months with no rental income.
Rental Limits
Key West does not impose an annual cap on the number of nights you can rent. Each individual stay must be 29 days or fewer per stay.
Zoning & Restrictions
Cap-based system with frozen total license pool. Licenses can be transferred with property sales but total pool is fixed. No new licenses issued beyond the cap.
Insurance & Safety
Safety & Operating Requirements
- State of Florida vacation rental license required (DBPR)
- City of Key West Business Tax Receipt required
- Property must meet Florida DBPR safety standards (smoke detectors, fire extinguishers, clean bedding)
Penalties for Non-Compliance
Each day an unlicensed residential unit is rented or advertised for rental constitutes a separate violation. Tax delinquency: minimum 10% penalty per month, maximum 50% of taxes owed.
Platform Requirements
- Listings must include valid Business Tax Receipt number
- Properties without a license from the capped pool cannot legally operate
Compliance Checklist
Follow these steps to legally operate a short-term rental in Key West:
- Meet safety requirements. State of Florida vacation rental license required (DBPR). City of Key West Business Tax Receipt required. Property must meet Florida DBPR safety standards (smoke detectors, fire extinguishers, clean bedding).
- Apply for Business Tax Receipt (Transient Rental License). Submit application + $178 fee.
- Register for tax accounts. Set up hotel occupancy tax accounts with the city tax authority.
- Collect and remit taxes. 11% on all bookings.
- Renew annually. $118-$300 (estimated range for transient rental Business Tax Receipt) renewal fee.
Official Sources
- Map & Addresses of Transient Rental Properties | Key West, FL
- What requirements are there for residential rentals? | City of Key West FAQ
- Article XI - Transient Rentals | Key West Code of Ordinances
- Special Vacation Rental Program | Monroe County, FL - Official Website
- Tourist Development Tax | Monroe County Tax Collector
- How much does a Business Tax Receipt cost? | City of Key West FAQ
- Licensing Division | Key West, FL
- How can I confirm the validity of vacation rentals? | City of Key West FAQ