Madison Short-Term Rental Regulations

Sources verified 2026-07-22
TL;DR
Madison requires an STR permit — 2 types available (fees from $300) and the property must be your primary residence. Combined tax rate is 15% (5% state + 10% city). Annual day limit: 30 days–unlimited (varies by permit type).
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — ZTRHP Permit (Zoning Tourist Rooming House Permit) + Transient Room Tax Permit + Dane County LICHMD License ($300) — See below for other permit types
Primary Residence ✓ Required
Annual Day Limit 30 days–unlimited (varies by permit type)
Tax Rate 15% (5% state + 10% city)
Max Penalty $500-$1,000 per day per violation; doubled if the permit has been revoked + revocation risk
Insurance Not required

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

Permit & Licensing

Which permit type applies to you?

ZTRHP Permit (Zoning Tourist Rooming House Permit) + Transient Room Tax Permit + Dane County LICHMD License (owner-occupied)

FeeAmount
Initial cost$300
Renewal$100 / Annual

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Zoning restriction: Zoning Tourist Rooming House Permit.

ZTRHP Permit (Zoning Tourist Rooming House Permit) + Transient Room Tax Permit + Dane County LICHMD License (non-owner-occupied)

FeeAmount
Initial cost$300
Renewal$100 / Annual

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Zoning restriction: Zoning Tourist Rooming House Permit.

Application Process

Apply for Transient Room Tax Permit (Finance Dept) and Dane County LICHMD License first, then apply for ZTRHP Permit. In-person home inspection required before ZTRHP approval.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

TaxRateAuthority
Wisconsin State Sales Tax 5% Wisconsin Department of Revenue
Madison Transient Room Tax 10% City of Madison Finance Department (Ordinance 4.21)

Combined rate: 15% of gross rental income.

Collection: Self-remit; hosts must apply for Transient Room Tax Permit and file quarterly returns

Filing: Quarterly; due dates: January 31, April 30, July 31, October 31

Rental Limits

Madison annual day limit: 30 days–unlimited (varies by permit type).

Occupancy & Density Limits

Lesser of twice the number of legal bedrooms or 12 people; children under 12 not counted

Zoning & Restrictions

ZTRHP Permit (Zoning Tourist Rooming House Permit) + Transient Room Tax Permit + Dane County LICHMD License: Zoning Tourist Rooming House Permit

Insurance & Safety

Insurance

Madison does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

Penalties for Non-Compliance

Compliance Checklist

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

  1. Determine your permit type. Madison has 2 permit types. Identify which applies to your property (ZTRHP Permit (Zoning Tourist Rooming House Permit) + Transient Room Tax Permit + Dane County LICHMD… (owner-occupied), ZTRHP Permit (Zoning Tourist Rooming House Permit) + Transient Room Tax Permit + Dane County LICHMD… (non-owner-occupied)).
  2. Meet safety requirements. Home inspection by Building Inspection staff before permit approval. Verified photo ID required for operator and all property owners. On-site guest registry required.
  3. Apply for your STR permit. Submit application + $300 fee. See permit types above to determine which applies.
  4. Register for tax accounts. Set up lodging tax accounts with City of Madison Treasury.
  5. Collect and remit taxes. 15% on all bookings.
  6. Renew annually. $100 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Madison?
Yes. Madison requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types. See the permit types above to find which applies to your property.
How much does a short-term rental permit cost in Madison?
A short-term rental permit in Madison costs $300.
Does Madison require a short-term rental to be your primary residence?
Yes. Every Madison permit type requires the property to be your primary residence, so investment or non-owner-occupied rentals generally are not eligible.
How many days a year can you short-term rent in Madison?
Madison's annual rental limit depends on the situation: 30 days–unlimited (varies by permit type).
What taxes do you pay on a short-term rental in Madison?
Short-term rental stays in Madison are subject to a combined 15% in lodging taxes. This combines 5% Wisconsin State Sales Tax + 10% Madison Transient Room Tax. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.
What are the penalties for short-term rental violations in Madison?
Penalties run up to $500-$1,000 per day per violation; doubled if the permit has been revoked (see the Penalties section for the full schedule).

Official Sources

  1. Short-Term Rentals | Building Inspection | City of Madison, WI
  2. Short-Term Rental Regulations | Building Inspection | City of Madison, WI
  3. Chapter 9 - Licenses and Permits (Section 9.29 Tourist Rooming Houses) | Code of Ordinances | Madison, WI | Municode Library
  4. Transient Room Tax | Finance | City of Madison, WI