State Airbnb laws2026 28 sources cited

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

Short-term rentals are legal in Kentucky with no state license, but each city sets its own rules: Louisville registration is $250 a year, Lexington's license $200, and Airbnb collects 6% sales tax, 1% state tax and 8.5% local tax.^{3,4,10,11,14,19,22}

Source: AirROI Reviewed by Jun Zhou, Founder @ AirROI Rules checked October 17, 2026

From 26 official sources and 2 Airbnb help pages. Not legal advice.

The short answer

Kentucky Airbnb Laws in Brief

No state license: permits, zoning and fines are set by each city or county.
Louisville: $250 a year to register; a conditional use permit ($560 to $1,260) for homes that are not the owner's primary residence in residential zones.
Lexington: Special Fees License at $200 for the first unit and $100 for each additional unit; fines up to $500 a day without one.
Taxes: 6% sales tax plus 1% state transient room tax, and 8.5% more in Louisville and Lexington (15.5% in all).

At a glance

Kentucky Short-Term Rental Laws at a Glance

State license required: Yes
Latest rule change: Jan 23, 2025

The laws in brief

The rules a Kentucky host meets first, each linked to the ordinance, statute or official page it comes from. Details and exceptions follow below.

Kentucky Short-Term Rental Laws at a Glance
Topic	Rule
Permit	Permits and zoning are set locally^7,8
Who can host	Louisville: owner's primary residence, registration only¹⁰
Where	Louisville: conditional use permit for other homes¹⁰
Building rules	Louisville: multi-family buildings generally barred¹¹
Night cap	Frankfort: 24 days a year while away⁴
Minimum stay	Rules apply to stays under 30 nights^4,6,15
Platforms	Platforms pay the state and local lodging taxes^5,6
Insurance	Lexington: $1 million liability insurance¹⁴
Neighbors	Lexington: no parties between 11 p.m. and 7 a.m.¹⁶

Your home

Can You Host an Airbnb in Kentucky? It Depends on the Home

Whether you can host in Kentucky turns on whose home it is and whether you live there.

Your own home, rented whole while you're away

Allowed with conditions

Louisville allows it with the $250 annual registration when the home is your primary residence in a residential zone. Lexington counts a rental as hosted only while the primary resident stays on the property, so an away rental is unhosted and faces density limits; Frankfort keeps owner-occupied status for up to 24 days a year away.^4,10,15,17

A room in your home with you present

Allowed

The simplest case: Lexington defines a hosted rental as one where the primary resident stays on site, and Louisville approves primary-residence rentals administratively. The local registration or license, tax number and fee still apply.^10,14,15

A second home or investment property you don't live in

Allowed with conditions

Louisville requires a conditional use permit ($1,260 plus a $200 pre-application, with a public hearing) in residential zones; Lexington applies density limits to unhosted rentals; Covington and Frankfort cap non-owner-occupied rentals in some districts. Nine small Jefferson County cities do not permit them.^4,10,17

A rented home (tenant hosting)

Allowed with conditions

Louisville's registration form requires the property owner's signature, and Lexington asks for an owner affidavit when someone other than the owner applies. Leases that bar subletting still apply.^10,11,14

An apartment, condo or HOA building

Allowed with conditions

Louisville generally bars short-term rentals in multi-family buildings unless the zoning is commercial, and condo and homeowner association rules and deed restrictions remain enforceable.^10,11

Permit

Do You Need a License for Airbnb in Kentucky?

Yes. Kentucky hosts need the Local short-term rental registration from the City, county or consolidated-government planning and revenue offices (for example the Louisville Metro Office of Planning and the Lexington Division of Revenue). It costs $250.^{3,4,10,11,14,19,22}

Who needs it: Hosts in cities and counties that regulate short-term rentals, including every host in Louisville, Lexington, Covington and Frankfort.^{3,4,10,11,14,19,22}
Issued by: City, county or consolidated-government planning and revenue offices (for example the Louisville Metro Office of Planning and the Lexington Division of Revenue)
Valid for: Louisville registrations last one year and Lexington and Covington licenses are renewed annually; Bowling Green's permit is a one-time building permit.
Processing: Louisville registration-only applications are approved administratively; a Louisville conditional use permit typically takes 4 to 5 months.
On listings: The number must appear on every listing
Platform checks: Covington bars hosting platforms that do not give hosts a field for the license number, and Louisville fines advertising a short-term rental that is not registered.

Fees

Fees
Fee	Amount	When
Louisville annual registrationApplication fee for each property, renewed every year.	$250	annual
Louisville conditional use permit pre-applicationRequired before a formal conditional use permit application.	$200	one-time
Louisville conditional use permit (owner occupied)Formal application fee where a conditional use permit is required for an owner-occupied rental.	$560	one-time
Louisville conditional use permit (non-owner occupied)Formal application fee for a rental that is not the owner's residence.	$1,260	one-time
Lexington Special Fees License (first unit)Renewed annually; each additional unit costs $100.	$200	annual
Lexington Special Fees License (each additional unit)For each unit after the first.	$100	annual
Covington initial licenseInitial short-term rental dwelling license fee.	$500	one-time
Covington license renewalAnnual renewal of the short-term rental dwelling license.	$250	annual
Frankfort annual regulatory licenseFor each short-term rental unit.	$250	annual
Bowling Green short-term rental permitBuilding permit for the change of use, with an inspection.	$45	one-time
Stanton annual business license (first unit)Each additional unit costs $100.	$300	annual

Who qualifies

Louisville: primary-residence owners in residential zones register administratively; other homes in residential zones also need a conditional use permit from the Board of Zoning Adjustment
Lexington: a Zoning Compliance Permit, a business license and a Special Fees License; unhosted rentals face density limits
Covington: a license for each unit; hosting platforms must carry the license number
Frankfort: owner-occupied rentals register; non-owner-occupied rentals need a conditional use permit in the Special Capital and Special Historic Districts
Some small cities, such as nine inside Jefferson County, have adopted no short-term rental rules and do not permit them

How to apply

Check the rules for the address with the city or county planning office (Louisville publishes an eligibility map; Lexington asks for a zoning verification form first).
Get the local tax reporting number or business license (a tax reporting number from the Louisville Metro Revenue Commission; a business license from the Lexington Division of Revenue).
Apply for the registration or license and pay the fee (in Louisville $250 with two proofs of residency; in Lexington through str.lexingtonky.gov).
Where the zoning requires a conditional use permit, apply to the Board of Zoning Adjustment or Board of Adjustment; in Louisville this typically takes 4 to 5 months.
Add the license or registration number to the listing and renew every year.

Permit rules

Permits and zoning are set locally: Kentucky has no state short-term rental license; cities and counties set their own registration, zoning and fines. The 2026 omnibus housing bill (Senate Bill 9), which would have limited local rules, died when the House and Senate conferees could not agree.^7,8
Platforms pay the state and local lodging taxes: Since January 1, 2023, short-term rental platforms such as Airbnb must report and pay the local transient room tax on the total charge, including service fees, as well as the 1% state tax.^5,6 In force since January 1, 2023
Louisville: annual registration, $250: Every short-term rental in Louisville Metro registers each year with the Office of Planning for a $250 fee per property, after getting a tax reporting number from the Revenue Commission.^10,11 Applies to: Louisville · In force since September 28, 2023
Louisville: conditional use permit costs: A Louisville conditional use permit costs a $200 pre-application fee plus $560 (owner occupied) or $1,260 (non-owner occupied), and typically takes 4 to 5 months including a public hearing.¹⁰ Applies to: Louisville
Lexington: Special Fees License, $200 a year: Lexington operators need a Zoning Compliance Permit, a business license and a Special Fees License renewed annually at $200 for the first unit and $100 for each additional unit.¹⁴ Applies to: Lexington
Covington: license, $500 first year then $250: Covington requires a short-term rental dwelling license for each unit, at $500 for the initial license from June 1, 2024 and $250 to renew each year.³ Applies to: Covington · In force since June 1, 2024
Covington: platforms must show the license number: A hosting platform that offers no field for the Covington license number cannot provide services for short-term rentals in the city.³ Applies to: Covington
Frankfort: annual registration, $250: Frankfort hosts submit an annual registration form to the Department of Planning and Community Development with a $250 regulatory license fee for each unit.⁴ Applies to: Frankfort

Who can host

What Kentucky Cities and Counties Can and Can't Regulate

Louisville: owner's primary residence, registration only: An owner who lives in the home as a primary residence in a residential or office-residential zone can usually operate with the annual registration alone, approved administratively, after showing two documents that prove residency.¹⁰ Applies to: Louisville
Louisville: conditional use permit for other homes: A rental that is not the owner's primary residence in a residential or office-residential zone needs a conditional use permit from a public board as well as the annual registration; industrial and planned-development zones are likely prohibited.¹⁰ Applies to: Louisville
Louisville: 600 feet between permitted rentals: To win a conditional use permit in Louisville, a short-term rental must be at least 600 feet from another rental that holds one.¹⁰ Applies to: Louisville
Louisville: multi-family buildings generally barred: A short-term rental in a Louisville multi-family building is generally prohibited unless the zoning is CR, CN, C1, C2, C3, OR3, OTF or EZ1.¹¹ Applies to: Louisville
Jefferson County: nine small cities have no short-term rental rules: Anchorage, Douglass Hills, Graymoor-Devondale, Hurstbourne, Indian Hills, Jeffersontown, Prospect, Shively and St. Regis Park have adopted no short-term rental regulations, so rentals there are not permitted; Lyndon, Middletown and St. Matthews have their own rules.¹⁰ Applies to: Jefferson County cities
Leases, HOA rules and deeds still apply: Louisville's rules do not override leases, homeowner association bylaws, covenants or deed restrictions that prohibit subletting or short-term rental use.¹⁰ Applies to: Louisville
Lexington: zoning compliance permit first: Every Lexington operator needs a Zoning Compliance Permit from the Division of Planning before the license, and hosted rentals must show two documents proving a permanent resident lives in the home.¹⁴ Applies to: Lexington
Lexington: density limits for unhosted rentals: Lexington's Planning Commission set the limit on unhosted rentals at 2% of the homes within 1,000 feet, with a 600-foot buffer between unhosted units, and the Urban County Council adopted the amendments on December 5, 2024.¹⁷ Applies to: Lexington · In force since December 5, 2024
Lexington: rural rentals need a conditional use permit: In Lexington's agricultural zones every short-term rental needs a conditional use permit from the Board of Adjustment, hosted rentals are the norm, and occupancy is limited to two people per bedroom.¹⁷ Applies to: Lexington · In force since January 23, 2025
Frankfort: caps on non-owner-occupied rentals: Non-owner-occupied rentals in Frankfort's Special Historic District are capped at 8 and those in the Special Capital District at 5% of dwelling units, each by conditional use permit.⁴ Applies to: Frankfort · In force since December 9, 2024
Paducah: conditional use permit in most residential zones: In Paducah, rentals in the R-2, R-3, Planned Office Park and Neighborhood Services zones are allowed by conditional use permit only; the R-1 zone allows only special-event rentals of up to seven days, two weeks a year.²¹ Applies to: Paducah
Stanton: R-1 and R-2 only, by conditional use permit: Stanton allows short-term rentals only in its R-1 and R-2 zones, by a conditional use permit from the Board of Adjustment that is reviewed each year.²² Applies to: Stanton · In force since January 1, 2022

Local rules

Local Rules in Kentucky's 8 Largest Airbnb Markets

A state license doesn't replace local rules. Cities and counties still set registration, occupancy, parking and safety requirements. These are Kentucky's largest markets by active Airbnb listings, with the share of each market's listings that display a registration or license number.

1. Louisville
Jefferson County (Louisville Metro) County
Louisville Metro requires every short-term rental to register each year for $250 and to hold a tax reporting number. A primary-residence owner in a residential zone registers administratively, while other homes in residential zones also need a conditional use permit with a public hearing.^10,11,12,13
- Annual registration, $250 per property; valid one year
- Conditional use permit for non-primary residences in residential zones: $200 pre-application plus $560 or $1,260, 600 feet from other permitted rentals
- Generally barred in multi-family buildings outside commercial zones
- Fines $125 to $1,000 per offense; advertising without registration an extra $125 a day
2. Lexington
Fayette County (Lexington-Fayette) County
Lexington licenses every short-term rental through a Zoning Compliance Permit, a business license and an annual Special Fees License of $200 for the first unit. Unhosted rentals in residential zones face a 2% density limit and a 600-foot buffer, and the local transient tax is 8.5%.^14,16,17,18
- Special Fees License $200 first unit, $100 each additional unit, renewed annually
- Zoning Compliance Permit, business license and $1,000,000 liability insurance
- Unhosted rentals: 2% of homes within 1,000 feet and 600 feet between units
- Fines up to $500 a day without a license; revocation after two citations
3. Covington
Kenton County
Covington requires a short-term rental dwelling license for each unit, at $500 for the initial license and $250 a year to renew. Listing an unlicensed rental is unlawful, platforms must carry the license number, and operating without a license is fined up to $500 a day.^2,3,27
- License for each unit: $500 initial (from June 1, 2024), $250 renewal
- Unlicensed rentals may not be listed or advertised
- Hosting platforms must offer a license-number field
- Fine up to $500 a day and a 12-month licensing bar
4. Frankfort
Franklin County
Frankfort requires an annual registration with a $250 license fee per unit and a rental housing inspection at first registration. Non-owner-occupied rentals are conditional uses in the Special Capital and Special Historic Districts, capped at 5% of dwelling units and 8 rentals respectively.⁴
- Annual registration; $250 regulatory license fee per unit
- Non-owner-occupied rentals by conditional use permit in the two special districts, with caps
- Maximum occupancy of twice the bedrooms plus four
- Owner-occupied status allows up to 24 days a year away
5. Bowling Green
Warren County
Bowling Green treats a new short-term rental as a change of use that needs an inspection and a $45 Short Term Rental Permit from the Building Division, with a maximum of 10 occupants per rental unit. Airbnb collects a 3% transient room tax and a 1% additional tax.^19,20,27
- Short Term Rental Permit, $45, with a change-of-use inspection
- Maximum 10 occupants per rental unit
- Transient room tax 3% plus 1% additional, collected by Airbnb
6. Paducah
McCracken County
Paducah allows short-term rentals by right only in R-4 and higher-density zones; the R-2, R-3, Planned Office Park and Neighborhood Services zones need a conditional use permit. Hosts also need a city business license and must file the McCracken County transient room tax form.²¹
- Conditional use permit in R-2, R-3, POP and NSZ zones; by right in R-4 and denser zones
- R-1 allows only special-event rentals of up to seven days, two weeks a year
- City business license and McCracken County transient room tax form
7. Stanton
Powell County
Stanton, the gateway to the Red River Gorge, allows short-term rentals only in R-1 and R-2 zones by an annually reviewed conditional use permit. Hosts pay a business license of $300 for the first unit and $100 for each additional one, plus a 3% city and a 3% Powell County transient room tax.²²
- Registration with Planning and Zoning; R-1 and R-2 zones only
- Conditional use permit from the Board of Adjustment, reviewed annually
- Business license $300 first unit, $100 each additional
- 3% city and 3% Powell County transient room tax
8. Williamstown
Grant County
Williamstown requires the Zoning Administrator's approval, a zoning permit and an occupational license before a short-term rental opens, with at most two adult guests per bedroom plus two more adults. Grant County requires a business license for every rental and an additional county permit outside Williamstown, Dry Ridge and Crittenden.^23,24
- Zoning Administrator approval, zoning permit and occupational license; annual renewal by June 1
- No more than two adult guests per bedroom, plus two additional adults
- At least two off-street parking spaces
- Grant County business license; county permit outside the three cities

Taxes

Kentucky Short-Term Rental Taxes

At least 7% on every stay under 30 nights (6% sales tax and 1% state transient room tax), and 15.5% in Louisville and Lexington once the 8.5% local tax is added; the sales tax is also charged on the local transient taxes.

Kentucky Short-Term Rental Taxes
Tax	Rate	Collected by
Kentucky sales tax 6% of the listing price, including cleaning fees, for stays of 29 nights or fewer	6%^6,27	Airbnb
Kentucky state transient room tax 1% of the listing price, including cleaning and guest fees, for stays of 29 nights or fewer	1%^5,27	Airbnb
Louisville Metro transient room tax 8.5% of the listing price including cleaning and guest fees, for stays of 29 nights or fewer	8.5%^12,27	Airbnb
Lexington-Fayette transient room tax 8.5% of the listing price including cleaning and guest fees, for stays of 29 nights or fewer	8.5%²⁷	Airbnb
Northern Kentucky transient room taxes (Boone, Campbell and Kenton counties) 3% plus a 1% special tax and a 1% additional tax, 5% in all	5%²⁷	Airbnb
Bowling Green transient room taxes 3% plus a 1% additional tax, 4% in all	4%²⁷	Airbnb
Other cities and counties: local transient room tax Set locally; state law caps the base tax at 3% (4% for an urban-county government), and Stanton and Powell County each charge 3%	—^1,22	Host

What the host still handles

A Kentucky transient room tax account with the Department of Revenue for any rent received outside a platform (not needed if every booking comes through Airbnb or VRBO)
In Louisville, a tax reporting number from the Revenue Commission, which also requires Net Profit returns on rental income
In Lexington, a business license from the Division of Revenue; in Stanton, an annual business license and monthly transient room tax reports to the city and to Powell County
In Grant County, a county business license (and a county permit outside Williamstown, Dry Ridge and Crittenden)^{5,6,12,22,24,27}

Operating rules

Operating Rules for Kentucky Short-Term Rentals

Rules apply to stays under 30 nights: Lexington defines a short-term rental as a dwelling rented for a tenancy of fewer than 30 consecutive days, and Frankfort uses the same threshold; stays of 30 days or more are also exempt from the transient room taxes.^4,6,15
Lexington: $1 million liability insurance: A Lexington license application must include proof of general liability insurance of at least $1,000,000 per occurrence, kept in force while the rental operates.¹⁴ Applies to: Lexington
Lexington: no parties between 11 p.m. and 7 a.m.: A licensed Lexington short-term rental cannot host private events such as weddings or parties between 11 p.m. and 7 a.m., or ticketed commercial events at any time.¹⁶ Applies to: Lexington
Frankfort: 24 days a year while away: An owner-occupied Frankfort rental keeps that status only if the owner rents it for no more than 24 days a year while not living there.⁴ Applies to: Frankfort

Fines

How to Avoid Airbnb Fines in Kentucky

Fines in Kentucky fall on hosting without the Local short-term rental registration, or outside the rules above. With it in hand and the rules followed, none of the fines below apply.

Louisville: operating an unregistered short-term rental is fined $125 for a first offense, $250 for a second, $500 for a third and $1,000 for a fourth or later offense, and each day may count as a separate offense.¹⁰
Louisville: advertising a short-term rental on a platform without a registration draws an additional $125 fine per day.¹⁰
Lexington: unlicensed short-term rentals can be fined up to $500 per day, and a license can be revoked after two citations.¹⁶
Covington: operating without a license is a civil offense with a fine of up to $500 per day, and the property cannot be licensed for 12 months.³
Frankfort: a first citation is $100, then $25 for each further day the violation continues after a Notice of Violation, and the license is revoked if it is not corrected.⁴

Changes

What's Changed in Kentucky's Airbnb Rules

No change was scheduled when the rules were checked on October 17, 2026; the most recent are listed first.

April 15, 2026 Lapsed
2026 Senate Bill 9 and two short-term rental bills die
The omnibus housing bill (Senate Bill 9), whose House version restricted local short-term rental rules, ended in a conference committee that could not agree before the session adjourned sine die on April 15, 2026. Senate Bills 54 and 112, which would have respectively expanded and limited local authority, never left committee.^7,8,25,26
March 2025 Lapsed
2025 Senate Bill 61 amendment on short-term rentals stalls
The House added a short-term rental amendment limiting local density rules to Senate Bill 61 and passed it 59-28 on March 14, 2025, but the Senate never concurred.⁹
January 23, 2025
Lexington adopts rural short-term rental rules
The Urban County Council adopted rules for short-term rentals in agricultural zones on January 23, 2025, requiring a conditional use permit and health department approval of septic capacity.¹⁷
December 9, 2024
Frankfort adopts caps and a $250 license fee
Frankfort's Ordinance 22, 2024 Series was finally adopted on December 9, 2024, with caps on non-owner-occupied rentals, an annual $250 license fee and set penalties.⁴
December 5, 2024
Lexington tightens urban short-term rental rules
On December 5, 2024 the Urban County Council adopted the amendments to the short-term rental regulations, which include the 2% density limit and the 600-foot buffer for unhosted rentals.¹⁷
September 28, 2023
Louisville's updated short-term rental ordinance takes effect
Metro Council's 2023 review of the short-term rental ordinances took effect on September 28, 2023.¹⁰
June 28, 2023
Covington adopts short-term rental licensing
Covington passed Chapter 127 (Ordinance O-11-23) on June 28, 2023 and amended it on May 14, 2024 (Ordinance O-08-24); the initial license fee became $500 on June 1, 2024.³
January 1, 2023
Platforms must pay state and local transient room taxes
House Bill 8 made short-term rental platforms responsible for the 1% state transient room tax and the local transient room taxes on the full rental charge, and exempted continuous stays of 30 days or more.^5,6

Listing data

What Kentucky's Listings Show

What officials report

1,226: Louisville Metro short-term rental registrations · as of October 17, 2026Louisville Metro's open data layer lists 1,226 short-term rental registrations, opened between June 2025 and October 2026; registrations last one year.¹³
738: Lexington licensed short-term rental locations · as of September 2, 2026Lexington's open data layer of locations licensed by the Division of Revenue holds 738 short-term rentals, last edited on September 2, 2026.¹⁸

Earnings

What Could a Short-Term Rental in Kentucky Earn?

The rules shape the numbers: a permit that costs $250 a year, a cap of 24 nights a year and taxes of 7% that Airbnb adds to guests' bills. For a specific address, the Airbnb profit calculator estimates revenue, occupancy and nightly rate from comparable listings, so you can test the numbers before applying.

Estimate what a home could earn

FAQ

Kentucky Short-Term Rental Laws: Frequently Asked Questions

Is Airbnb legal in Kentucky?

Yes. Kentucky has no state ban or state license, and rentals of fewer than 30 nights are allowed under local rules: Louisville, Lexington, Covington and Frankfort each require a registration or license, and nine small Jefferson County cities do not permit them.^3,4,10,14

Do I need a permit for Airbnb in Kentucky?

Usually yes, from the city or county. Louisville requires an annual registration, Lexington a Special Fees License plus a Zoning Compliance Permit, Covington and Frankfort a license, and Bowling Green a $45 short-term rental permit; there is no state license.^3,4,10,14,19

How much is a short-term rental license in Kentucky?

It depends on the city: Louisville $250 a year, Lexington $200 for the first unit and $100 for each additional unit, Covington $500 for the initial license and $250 to renew, Frankfort $250 a year, Bowling Green $45 and Stanton $300 a year.^{3,4,10,14,19,22}

Can I rent a home I don't live in on Airbnb in Kentucky?

Sometimes. Louisville requires a conditional use permit ($1,260 plus a $200 pre-application) for such homes in residential zones, Lexington limits unhosted rentals to 2% of homes within 1,000 feet, and Frankfort caps non-owner-occupied rentals in its Special Historic and Special Capital Districts.^4,10,17

Does Airbnb collect hotel tax in Kentucky?

Yes for the state taxes: Airbnb collects the 6% sales tax and the 1% transient room tax, plus local transient room taxes in Lexington, Louisville, Northern Kentucky, Oldham County, Woodford County and Bowling Green. Hosts who book only through Airbnb or VRBO need no state transient room tax account.^5,6,27

What is the lodging tax on an Airbnb stay in Kentucky?

At least 7% statewide (6% sales tax plus 1% state transient room tax). In Louisville and Lexington an 8.5% local tax brings it to 15.5%, in Northern Kentucky the local tax is 5% and in Bowling Green 4%.^6,27

What is the fine for an illegal Airbnb in Kentucky?

Louisville fines $125 for a first offense up to $1,000 for a fourth, with each day possibly counting separately; Lexington and Covington fine up to $500 a day, and Frankfort $100 for a first citation then $25 a day.^3,4,10,16

Can Kentucky cities limit or ban short-term rentals?

Yes. State law does not stop them: bills to limit local rules, including Senate Bill 9 in 2026 and an amendment to Senate Bill 61 in 2025, did not pass. Lexington caps unhosted rentals by density and Frankfort caps non-owner-occupied rentals in two districts.^4,7,8,9,17

Is there a limit on how many nights I can host in Kentucky?

No statewide night cap applies, and Louisville and Lexington set none for registered primary residences. Frankfort keeps owner-occupied status only if the owner rents the home no more than 24 days a year while away.^4,10,14

Do I have to register for Kentucky's transient room tax?

Not if every rental goes through Airbnb or VRBO, which collect and pay the 1% state tax. If you take any rent directly, you must register, report all rental receipts and remit tax on the part received directly.^5,6

Do I need to show a license number on my Airbnb listing in Kentucky?

In Covington, yes: platforms must offer a field for the license number or cannot serve the city. Louisville fines advertising a short-term rental that is not registered at $125 a day.^3,10

Are short-term rentals allowed in small cities near Louisville?

Often not. Anchorage, Douglass Hills, Graymoor-Devondale, Hurstbourne, Indian Hills, Jeffersontown, Prospect, Shively and St. Regis Park have adopted no rules, so rentals are not permitted there, while Lyndon, Middletown and St. Matthews have their own regulations.¹⁰

Method

How These Rules Were Checked

Each rule on this page was checked in October 2026 against the official source cited beside it: the ordinance or statute, the permit office's own pages and the tax authority. Airbnb's help pages are cited on their own only for what Airbnb itself does, such as the taxes it collects and the permit checks it runs, and otherwise only beside an official source; news reports only for when a change was announced. Rules that could not be confirmed on an official page are left out. The Louisville Metro Planning and Revenue Commission pages and the American Legal Publishing pages for Covington's code were read in a browser because they block scripts.

Rules change with council votes, court rulings and new state laws, so the page is rechecked every three months and whenever a scheduled change takes effect. It summarizes the rules for information and is not legal advice; the state agency and your city or county has the final word on any application.

Sources

Each rule above links to the source it comes from. Official ordinances, statutes and government pages come first, then Airbnb's own help pages.

1. KRS 91A.390 Room tax -- Special transient room tax · Kentucky Legislative Research Commission
2. Covington Code of Ordinances, Chapter 127: Short-Term Rentals · City of Covington (American Legal Publishing)
3. Covington Code of Ordinances, Sections 127.16 to 127.99 (fees, platform obligations, penalty) · City of Covington (American Legal Publishing)
4. Ordinance No. 22, 2024 Series - Short Term Rentals · City of Frankfort
5. Transient Room Tax · Kentucky Department of Revenue
6. Transient Room Tax (Tax Answers) · Kentucky Department of Revenue
7. 26RS SB 9 (AN ACT relating to housing districts) · Kentucky Legislative Research Commission
8. 2026 Regular Session Legislative Record · Kentucky Legislative Research Commission
9. 25RS SB 61 (House Floor Amendment 1, short-term rentals) · Kentucky Legislative Research Commission
10. Short Term Rental Information · Louisville Metro Office of Planning
11. Short Term Rental Annual Registration Form (October 2025) · Louisville Metro Office of Planning
12. Transient Room Tax · Louisville Metro Revenue Commission
13. Louisville Metro KY - Short-Term Rentals (open data) · Louisville Metro Government
14. Short-Term Rentals: Licensure requirements and permitting · Lexington-Fayette Urban County Government
15. Short-Term Rentals (STRs) · Lexington-Fayette Urban County Government
16. Short-Term Rentals: Community resources · Lexington-Fayette Urban County Government
17. Short-Term Rental Regulation Review · Engage LexingtonKY (Lexington-Fayette Urban County Government)
18. Short Term Rental - Public view (open data) · Lexington-Fayette Urban County Government
19. Permit Applications (Short Term Rental Permit) · City of Bowling Green Neighborhood and Community Services
20. Short Term Rental Guide · City of Bowling Green Neighborhood and Community Services
21. Short-Term Rentals · City of Paducah Planning Division
22. Short Term Rentals · City of Stanton Planning & Zoning
23. Short-Term Vacation/Housing Rental Guidelines · City of Williamstown
24. Short Term Rental Property · Grant County Fiscal Court
25. 26RS SB 54 (AN ACT relating to short-term rentals) · Kentucky Legislative Research Commission
26. 26RS SB 112 (AN ACT relating to short-term rentals) · Kentucky Legislative Research Commission
27. Occupancy tax collection and remittance by Airbnb in Kentucky · Airbnb Help Center
28. Louisville, KY · Airbnb Help Center

Kentucky Airbnb Laws in Brief

Kentucky Short-Term Rental Laws at a Glance

The laws in brief

Can You Host an Airbnb in Kentucky? It Depends on the Home

Your own home, rented whole while you're away

A room in your home with you present

A second home or investment property you don't live in

A rented home (tenant hosting)

An apartment, condo or HOA building

Do You Need a License for Airbnb in Kentucky?

Fees

Who qualifies

How to apply

Permit rules

What Kentucky Cities and Counties Can and Can't Regulate

Local Rules in Kentucky's 8 Largest Airbnb Markets

1. Louisville

2. Lexington

3. Covington

4. Frankfort

5. Bowling Green

6. Paducah

7. Stanton

8. Williamstown

Kentucky Short-Term Rental Taxes

What the host still handles

Operating Rules for Kentucky Short-Term Rentals

How to Avoid Airbnb Fines in Kentucky

What's Changed in Kentucky's Airbnb Rules

What Kentucky's Listings Show

What officials report

What Could a Short-Term Rental in Kentucky Earn?

Kentucky Short-Term Rental Laws: Frequently Asked Questions

How These Rules Were Checked

Sources