Delaware Short-Term Rental Laws & Hotel Tax (2026)

State license required

Yes

Next rule change

Jan 1, 2028

The laws in brief

Who needs it

Hosts in towns that license rentals, including Lewes, Rehoboth Beach, Bethany Beach, Ocean View, Dewey Beach and Millville; owners who book guests without Airbnb or another platform also need the state license.^{1,7,10,11,16,20,22,30}

Issued by

The town or city where the home stands; Delaware Division of Revenue for the state intermediary license

Valid for

Town licenses run for one year: by calendar year in Lewes and Ocean View, June 1 to May 31 in Bethany Beach, May 1 to April 30 in Dewey Beach and Millville. The state intermediary license renews by December 31.

On listings

The number must appear on every listing

Platform checks

State law requires an accommodations intermediary to put its Delaware license number on marketing for each rental unit, and Millville asks owners of weekly or seasonal rentals for the state intermediary license or a link to the platform's license before it issues a town license.

Fees

Who qualifies

• Lewes: the applicant must own the property and attest that no HOA agreement, condo bylaw or covenant bars short-term rental
• Rehoboth Beach: every residential rental needs a license, with a local contact and an annual self-inspection
• Millville: owners of weekly or seasonal rentals must show the Delaware accommodations intermediary license or the platform's license
• Selbyville and Newark: short-term rentals are not allowed

How to apply

1. 1 Check that the town allows short-term rentals; Selbyville prohibits them and Newark treats them as banned.
2. 2 Apply to the town or city hall for its rental license, with proof of ownership and local contact details where required (Lewes, Rehoboth Beach).
3. 3 Register with the town for its rental or accommodations tax and file the return on its schedule.
4. 4 List through Airbnb, which holds the state license and collects the 4.5% state tax; an owner booking directly applies for the state license at onestop.delaware.gov.

Permit rules

No state permit when you list on Airbnb

A host who books guests only through a platform such as Airbnb does not need a Delaware business license; the platform holds the state accommodations intermediary license. Town rental licenses still apply.¹⁰

State license for hosts who book guests directly

An owner who rents without a third-party platform must hold a Delaware accommodations intermediary business license, which costs $25 a year and renews by December 31, and must collect and remit the state tax.^10,11 Applies to: owners booking without a platform

State license number goes on marketing

An accommodations intermediary must put its Delaware license number on all marketing materials for each rental unit.¹ Applies to: accommodations intermediaries

Platforms collect the 4.5% state tax

When an owner books through Airbnb, Vrbo or a similar platform, only the platform collects and remits the 4.5% state tax, and the platform must hold the Delaware accommodations intermediary license.^10,33 In force since January 1, 2025

Rehoboth Beach: residential rental license for every rental

No owner may rent a residential property in Rehoboth Beach without a valid residential rental license, and the rule covers rentals of any duration, including stays of 120 days or less.^5,13 Applies to: Rehoboth Beach

Lewes: short-term rental license, $200 a year

A Lewes short-term rental license costs $200 a year, runs by calendar year, and is available for rentals in all areas of the city; the licensing ordinance took effect on January 1, 2023.^16,19 Applies to: Lewes · In force since January 1, 2023

Lewes: rental ID number in every ad

Every advertisement for a Lewes short-term rental, including listings on booking websites, must show the city's rental identification number.¹⁵ Applies to: Lewes · In force since January 1, 2023

Bethany Beach: rental license for each unit, $100 a year

Anyone renting a property in Bethany Beach at any time of year needs a rental license for each unit; it costs $100 and runs June 1 to May 31.^20,21 Applies to: Bethany Beach

Ocean View: rental license, $150 a year

Anyone renting property in Ocean View needs a rental license, which follows the calendar year and costs $150.²² Applies to: Ocean View

Dewey Beach: annual rental license with window cling

Any owner who rents all or part of a property in Dewey Beach needs an annual rental license (May 1 to April 30) and must show the window cling issued with it; occupancy is limited to two persons per bedroom plus two.²⁴ Applies to: Dewey Beach

Dewey Beach: listing sites must collect the 3% tax

Since an ordinance approved on April 25, 2025, accommodations intermediaries collect and remit Dewey Beach's accommodations tax for the owner unless the owner asks to remit it directly.²⁶ Applies to: Dewey Beach · In force since April 25, 2025

Millville: rental license, $50, plus the state intermediary license

Millville charges $50 a year for a rental license, and owners of weekly or seasonal rentals must give the town their Delaware accommodations intermediary license or a link to the platform's license before the town issues one.³⁰ Applies to: Millville

Lewes: applicant must own the property

A Lewes short-term rental license application attests that the applicant has an ownership interest in the property.⁷ Applies to: Lewes · In force since January 1, 2023

Lewes: no HOA or condo bar on rentals

The applicant attests that no homeowner association agreement, condominium bylaw or covenant bars short-term rental use.⁷ Applies to: Lewes · In force since January 1, 2023

Selbyville: short-term rentals are prohibited

Selbyville defines a short-term rental as a rental of less than one year and prohibits it; the Mayor and Council adopted an ordinance on July 7, 2025 that defines and prohibits it in so many words.^28,29 Applies to: Selbyville · In force since July 7, 2025

Newark: staff treat short-term rentals as banned

Newark's planning department reads its zoning code, which allows only non-transient rentals, as a ban on short-term rentals, and an amendment to spell the ban out was before the Planning Commission on April 7, 2026.³² Applies to: Newark · In force since April 7, 2026

1. 1. Rehoboth Beach

   Sussex County

   Rehoboth Beach requires a residential rental license for every rental, whatever its length, with an occupancy cap of two persons per bedroom plus two. Owners pay a 7% rental tax to the city by February 15 for the previous year.^5,6,13,14

   • Residential rental license required for rentals of any duration
   • Overnight occupancy: two persons per bedroom plus two (children under six not counted)
   • 24/7 local contact and an annual self-inspection submitted to the city
   • 7% gross receipts rental tax paid by the owner, due February 15

2. 2. Lewes

   Sussex County

   Lewes licenses short-term rentals in all areas of the city for $200 a year, and every ad must show the city's rental ID number. The city's rental tax is 5% of gross receipts, rising to 5.5% on January 1, 2028.^7,8,15,16,17

   • Short-term rental license $200 a year; applicant must own the property
   • Rental ID number in every advertisement
   • Local contact available 24 hours a day, able to reach the rental within two hours
   • Occupancy: two persons per bedroom plus two (children 12 and younger not counted)

3. 3. Bethany Beach

   Sussex County

   Bethany Beach requires a rental license for each unit rented at any time of year; it costs $100 and runs from June 1 to May 31. The town also charges a rental tax of 7% of gross rental income, due November 1 and June 1.^20,21

   • Rental license for each unit rented, $100 a year (June 1 to May 31)
   • Rental tax 7% of gross rental income
   • Rental tax due November 1 and June 1

4. 4. Ocean View

   Sussex County

   Ocean View requires a rental license for anyone renting property in town; it costs $150 for the calendar year. The gross rental receipts tax is 6% since January 1, 2025 (5% before), paid twice a year.^22,23

   • Rental license $150, calendar year
   • Gross rental receipts tax 6% since January 1, 2025
   • Tax due August 15 (January to June) and February 15 (July to December)

5. 5. Wilmington

   New Castle County

   Wilmington requires every rental property to be registered, licensed and inspected under its Residential Property Rental License program. A short-term rental ordinance (#0509) would add a $75 owner permit and a 2% city lodging tax, but its filed text shows no passage.^9,10,27

   • Residential Property Rental License required for rental property (City Code section 5-92)
   • Ordinance #0509 (proposed): $75 annual owner permit
   • Ordinance #0509 (proposed): 2% city lodging tax
   • The 4.5% state tax applies through the platform

6. 6. Dewey Beach

   Sussex County

   Dewey Beach requires an annual rental license (May 1 to April 30) for any rented property, with a window cling on display and occupancy of two persons per bedroom plus two. The town's accommodations tax is 3% of gross proceeds, and listing sites must collect it unless the owner remits it.^24,25,26

   • Annual rental license, May 1 to April 30; window cling displayed
   • Occupancy: two persons per bedroom plus two (children 5 and younger not counted)
   • Accommodations tax 3% of gross proceeds
   • Intermediaries collect the tax unless the owner remits it (ordinance of April 25, 2025)

7. 7. Selbyville

   Sussex County

   Selbyville prohibits short-term rentals, defined as rentals of less than one year; the Mayor and Council adopted an ordinance saying so on July 7, 2025. An owner found operating a short-term rental loses the rental license at once and is fined each day.^28,29

   • Short-term rentals (under one year) are prohibited
   • Ordinance adopted July 7, 2025
   • License revoked at once and a daily fine for operating one
   • Annual rental license for longer rentals: $125 per unit

8. 8. Millville

   Sussex County

   Millville charges $50 a year for a rental license, and owners of weekly or seasonal rentals must show the Delaware accommodations intermediary license or a link to the platform's license. The town's gross rental receipts tax is 2%.^30,31

   • Rental license $50 a year (May 1 to April 30)
   • State intermediary license, or the platform's, shown before the license issues
   • Occupancy: two persons per bedroom plus two
   • Gross rental receipts tax 2%

What the host still handles

• A town rental license where the home stands (for example Lewes $200, Ocean View $150, Bethany Beach $100, Millville $50 a year)
• The town's rental or accommodations tax account, with returns filed by the owner (Rehoboth Beach and Bethany Beach 7%, Ocean View 6%, Lewes 5%, Dewey Beach 3%, Millville 2%)
• A Delaware accommodations intermediary business license ($25 a year, renewed by December 31) and monthly state tax returns, only when the owner books guests without a platform^{1,2,3,4,10,33}

Stays up to 31 nights count as short-term rentals

For the state lodging tax a short-term rental is a house, apartment, condominium or other dwelling rented to a tourist or transient guest for no more than 31 consecutive nights.¹ In force since January 1, 2025

Casual rentals of 10 nights or fewer are outside the state tax

A rental arranged directly by the owner on a casual and isolated basis, at rent well below market and for no more than 10 nights in a calendar year, is not a short-term rental for the state tax.¹⁰ In force since January 1, 2025

Town taxes are separate from the state tax

The state tax goes to the Division of Revenue; any tax a Delaware municipality imposes is collected and remitted to that municipality, not to the state.¹⁰

Unincorporated Sussex County: no county tax on short-term rentals

Sussex County's 3% lodging tax covers hotels, motels and tourist homes in unincorporated areas; the County Council voted 3-2 at its December 10, 2024 meeting against extending it to short-term rentals.^4,34 Applies to: unincorporated Sussex County · In force since December 10, 2024

Rehoboth Beach: two guests per bedroom plus two

Overnight occupancy may not exceed two persons per bedroom plus two additional persons; children under six are not counted.¹³ Applies to: Rehoboth Beach

Rehoboth Beach: 24/7 local contact

Each owner names a local contact who can be reached at any hour to deal with problems at the rental.¹³ Applies to: Rehoboth Beach

Lewes: contact within two hours

The owner designates a local contact who is available around the clock and who can reach the rental within two hours when the city asks.¹⁵ Applies to: Lewes · In force since January 1, 2023

Lewes: smoke detectors, CO detectors and extinguisher

Each Lewes short-term rental needs working smoke detectors in every bedroom, outside sleeping areas and on every habitable floor, carbon monoxide detectors where there is a garage or fuel appliance, and a charged fire extinguisher.⁷ Applies to: Lewes · In force since January 1, 2023

Lewes: two guests per bedroom plus two

Overnight occupancy is capped at two persons per bedroom plus two more; children 12 and younger are not counted.⁷ Applies to: Lewes · In force since January 1, 2023

• Lewes: a third license or operational violation draws a $500 fine and a 12-month suspension of the rental license; any fine unpaid after 30 days is doubled.¹⁶
• State tax: short-term rental lodging tax filed late carries a penalty of 5% per month plus interest of 0.5% per month.¹⁰
• Selbyville: a short-term rental license is revoked at once and the owner is fined every day the violation continues.²⁹
• Rehoboth Beach: each day a violation of the Residential Rental Ordinance continues is a separate civil offense, with the assessment set in the city's schedule of fees and penalties.⁵
• Dewey Beach: failing to file the accommodations tax payment form carries a $200 penalty, and late tax is assessed 1.5% a month.²⁵

1. January 1, 2028 Upcoming
   Lewes short-term rental tax rises to 5.5%

   Lewes's gross receipts rental tax on short-term rentals rises from 5% to 5.5% on January 1, 2028; agreements signed earlier are exempt from the increase.⁸

2. April 7, 2026 Not in force
   Newark reviews a zoning amendment to spell out its ban

   Newark's Planning Commission reviewed amendments to the zoning chapter to clarify the city's existing ban on short-term rentals.³²

3. November 21, 2025
   Rehoboth Beach amends its rental violation rules

   Rehoboth Beach amended the violations section of its Residential Rental Ordinance (Ordinance February 1125); each day a violation continues is a separate civil offense.⁵

4. July 7, 2025
   Selbyville prohibits short-term rentals

   Selbyville's Mayor and Council adopted an ordinance that specifically defines and prohibits short-term rentals, defined as rentals of less than one year.²⁸

5. May 12, 2025
   Lewes adopts a higher tax rate for short-term rentals

   Lewes adopted an ordinance setting the gross receipts rental tax on short-term rentals at 5.5% from January 1, 2028; rental agreements signed before that date keep the current 5%.^8,18

6. April 25, 2025
   Dewey Beach puts its accommodations tax on listing sites

   Dewey Beach's Town Council approved an ordinance requiring accommodations intermediaries to collect and remit the 3% accommodations tax unless the owner remits it directly.²⁶

7. January 1, 2025
   Ocean View raises its rental tax to 6%

   Ocean View's gross rental receipts tax rose from 5% to 6% for rental receipts after January 1, 2025.²³

8. January 1, 2025
   State 4.5% short-term rental tax begins

   The 4.5% state lodging tax applies to short-term rental agreements entered into on or after January 1, 2025, and Airbnb collects it.^2,10

9. December 10, 2024 Lapsed
   Sussex County council rejects a 3% short-term rental tax

   The Sussex County Council voted 3-2 not to extend its 3% lodging tax to short-term rentals in unincorporated areas.³⁴

10. November 21, 2024 Not in force
    Wilmington short-term rental ordinance introduced

    Wilmington City Council Ordinance #0509 would require an owner permit ($75 a year) and add a 2% city lodging tax; the filed text shows first and second readings on November 21, 2024 and no passage.⁹

11. September 30, 2024
    Delaware adopts a short-term rental lodging tax

    House Substitute 2 for House Bill 168 was signed on September 30, 2024. It created the 4.5% short-term rental lodging tax and the $25 accommodations intermediary license, and let New Castle and Sussex Counties add up to 3%.^2,12

Estimate what a home could earn

1. 1. Delaware Code Title 30, Chapter 62 - Short-Term Rental Lodging Tax · Delaware General Assembly
2. 2. House Substitute 2 for House Bill 168 (lodging tax) · Delaware General Assembly
3. 3. Delaware Code Title 30, Chapter 61, Subchapter I - Lodging Tax Collection · Delaware General Assembly
4. 4. Sussex County Code, Chapter 103, Article VI - Lodging Tax · Sussex County, Delaware (eCode360)
5. 5. Chapter 210: Residential Rentals · City of Rehoboth Beach (eCode360)
6. 6. Article II: Rental Property (Chapter 245, Taxation) · City of Rehoboth Beach (eCode360)
7. 7. Chapter 150, Article II: Short-Term Rentals · City of Lewes (eCode360)
8. 8. Ordinance: Gross Receipts Rental Tax Rate (adopted May 12, 2025) · City of Lewes
9. 9. Ordinance #0509: Short-Term Residential Rental Regulations · Wilmington City Council
10. 10. Short-Term Rental FAQs · Delaware Division of Revenue
11. 11. Tax Tips for Short Term Rental Intermediaries Conducting Business in Delaware · Delaware Division of Revenue
12. 12. House Substitute 2 for House Bill 168 - bill detail · Delaware General Assembly
13. 13. Residential Rental License · City of Rehoboth Beach
14. 14. Lodging & Rental Taxes · City of Rehoboth Beach
15. 15. Short-Term RESIDENTIAL Rentals · City of Lewes
16. 16. Residential Rental Licensing FAQs · City of Lewes
17. 17. Residential Rental License Application · City of Lewes
18. 18. GRRT Ordinance · City of Lewes
19. 19. Rentals · City of Lewes
20. 20. Licenses & Rental Tax · Town of Bethany Beach
21. 21. Rental License Process and Application · Town of Bethany Beach
22. 22. Business & Rental Licenses · Town of Ocean View
23. 23. Gross Rental Receipts · Town of Ocean View
24. 24. Residential Rental License Application · Town of Dewey Beach
25. 25. Accommodation Tax Form (Code Chapter 167, Article III) · Town of Dewey Beach
26. 26. New Accommodations Tax Legislation Passed · Town of Dewey Beach
27. 27. Residential Rental Properties: How the Program Works · City of Wilmington
28. 28. Short-Term Rentals - Prohibited · Town of Selbyville
29. 29. Single Unit Rentals (House or Trailer) application · Town of Selbyville
30. 30. Residential Rental License Application, per unit (revised 2026-03-12) · Town of Millville
31. 31. Resolution 26-12, fee schedule · Town of Millville
32. 32. Planning Commission meeting minutes, April 7, 2026 · City of Newark, Delaware
33. 33. Occupancy tax collection and remittance by Airbnb in Delaware · Airbnb Help Center
34. 34. County council votes against lodging tax · Coastal Point