Maryland Short-Term Rental Laws & Hotel Tax by County (2026)

State license required

Yes

Tax on a stay

12%–15.5%

Next rule change

March 2027

The laws in brief

Who needs it

Hosts in nearly every jurisdiction that has a rental program, including Ocean City, Baltimore City, Annapolis, Montgomery County, Prince George's County, Garrett County's Deep Creek Lake area and unincorporated Worcester County. Maryland issues no statewide short-term rental license.^{4,5,11,14,15,16,17,20,22}

Issued by

County, Baltimore City or town licensing office; Comptroller of Maryland for the tax account

Valid for

Ocean City, Annapolis, Montgomery County, Prince George's County and unincorporated Worcester County licenses run one year; Baltimore City and Garrett County licenses run two years.

Processing

Montgomery County approves or denies applications 30 to 60 days after submission; Ocean City requires an inspection within 30 days of a new license.

On listings

The number must appear on every listing

Platform checks

Baltimore City platforms must check the license with the city before listing a unit and remove a listing within 3 days of notice, and Prince George's County licenses platforms as well as hosts. Since October 1, 2026 every booking service must notify hosts of the state fire-safety requirements and collect proof of compliance.

Fees

Who qualifies

• Baltimore City: the property must be the owner's principal residence, deeded to an individual and free of code violations
• Montgomery County: the owner applies with proof of primary residence; an accessory dwelling unit cannot be rented short term
• Prince George's County: the host must hold the Homestead Tax Credit on the home, which makes it the permanent residence
• Annapolis: owner-occupied homes only while the moratorium lasts; the association must approve if the home is in a condominium or HOA
• Ocean City and unincorporated Worcester County: any owner may apply; R-1 single-family neighborhoods are open to new licenses again

How to apply

1. 1 Confirm which county, city or town the address is in, then check zoning and any HOA or condominium rules.
2. 2 Apply to that jurisdiction's licensing office: Montgomery County DHCA online, Baltimore City DHCD online portal, Annapolis Short Term Rental Portal, Prince George's County DPIE online, Garrett County Licensing and Enforcement, Worcester County rental license program, or Ocean City by mail or in person.
3. 3 Register for a sales and use tax account with the Comptroller of Maryland through Maryland Tax Connect; Baltimore City, Annapolis and Montgomery County applications ask for the number.
4. 4 Equip the unit to the state fire-safety standard, pass any local inspection, and add the license number to the listing where the city requires it.

Permit rules

No state license; counties and cities decide

Maryland has no statewide short-term rental license. State law says it does not require any county or Baltimore City to allow short-term rentals and does not stop them from adding their own rules.¹ In force since October 1, 2026

Booking platforms must notify hosts and collect proof

A booking service must electronically notify every host using it of the fire-safety requirements and require each host to supply the compliance documentation for each unit.¹ In force since October 1, 2026

Baltimore City: license number in every listing

A Baltimore City host must put the license number in every online listing, and platforms must check it with the city before listing the unit.^6,7 Applies to: Baltimore

Ocean City: rental license plus short-term add-on

Every Ocean City rental needs the annual rental license and noise control permit, and a rental of 30 consecutive days or fewer needs the Short-Term Rental Housing Unit License on top of it.¹¹ Applies to: Ocean City

Annapolis: new non-owner-occupied licenses paused

No new short-term rental licenses are issued for homes the owner does not live in for 12 months from the ordinance's effective date (March 2026); renewals and owner-occupied homes are exempt.^19,27 Applies to: Annapolis · In force since March 9, 2026

Garrett County: TVRU license at Deep Creek Lake

Rentals around Deep Creek Lake need a Transient Vacation Rental Unit license from Garrett County before the first booking.¹⁶ Applies to: McHenry · In force since March 1, 2006

Worcester County: license for every rental outside the towns

Every rental in unincorporated Worcester County, including Ocean Pines, needs a county rental license whatever the length of stay; Ocean City, Berlin, Pocomoke City and Snow Hill run their own programs.¹³ Applies to: Ocean Pines

Ocean Pines: community permit and sticker as well

Inside Ocean Pines, a house rented for 28 days or less also needs an Ocean Pines Association rental permit and sticker, renewed each year after an inspection.²⁵ Applies to: Ocean Pines

Baltimore City: license only for your permanent residence

Baltimore City issues a short-term rental license only for the owner's permanent residence, where the owner lives at least 180 days a year, and the license does not transfer when the home is sold.⁴ Applies to: Baltimore

Baltimore City: no new licenses for unhosted rentals

Baltimore City is not issuing new licenses for units where the owner is away during the stay; existing unhosted licenses can be renewed, and new licenses go only to hosted units.¹⁴ Applies to: Baltimore

Annapolis: 10% cap per block face

Annapolis adopted an ordinance on October 13, 2025 that limits short-term rentals to 10% of the residences on a block face.¹⁸ Applies to: Annapolis · In force since October 13, 2025

Annapolis: association approval and local manager

An Annapolis application needs approval from any condominium, homeowners or community association with authority over the home, and the licensee must live in the city or hire a local property manager reachable by telephone at all times.¹⁷ Applies to: Annapolis

Montgomery County: owner's primary residence, DHCA license

Montgomery County licenses short-term residential rentals of under 30 consecutive days through DHCA, and applicants submit proof of primary residence and notify their neighbors.²⁰ Applies to: Silver Spring

Montgomery County: no short-term rental of accessory dwelling units

An accessory dwelling unit in Montgomery County cannot be operated as a short-term rental, and the municipalities of Rockville, Gaithersburg and others outside DHCA's program run their own rules.²¹ Applies to: Silver Spring

Prince George's County: permanent residence with Homestead Credit

A Prince George's County host must show the short-term rental is the permanent residence by holding the Maryland Homestead Tax Credit on it before applying.²² Applies to: National Harbor

1. 1. Ocean City

   Worcester County

   Every Ocean City rental needs an annual rental license and noise control permit, and stays of 30 nights or fewer need a short-term rental license on top, for $246 a year for a single-family home. Unlicensed renting is fined up to $5,000, and new licenses in R-1 neighborhoods resumed in February 2026 after the council repealed its moratorium.^11,12,28

   • Rental license and noise permit $196, short-term add-on $50 ($246 a year)
   • New applications by mail or in person; inspection within 30 days of a new license
   • Local contact who can respond within 60 minutes
   • R-1 districts: 2 persons per bedroom plus 2

2. 2. Baltimore

   Baltimore City County

   Baltimore City licenses a short-term rental only for the owner's permanent residence, for $200 every two years, and is issuing no new licenses for units where the owner is away. Hosts put the license number in every listing and platforms verify it with the city; the hotel room tax is 9.5%.^{4,5,6,7,8,14,23}

   • Owner's permanent residence only (180 days a year), deeded to an individual
   • $200 per dwelling unit every two years
   • No new licenses for unhosted units
   • License number required in every listing; platforms remove listings within 3 days of notice

3. 3. McHenry

   Garrett County

   Around Deep Creek Lake, Garrett County requires a Transient Vacation Rental Unit (TVRU) license before any booking. Occupancy is capped at two persons per bedroom plus four, and the county charges an 8% accommodation tax that licensed owners report monthly.^15,16

   • TVRU license before renting; $50 registration, $200 license and $150 health fee every two years
   • Maximum 8 bedrooms; two persons per bedroom plus four
   • 8% county accommodation tax reported monthly
   • Bear-proof trash container required

4. 4. Annapolis

   Anne Arundel County

   Annapolis licenses short-term rentals for $650 a year (owner-occupied) or $750 (non-owner-occupied), caps them at 10% of a block face and has paused new non-owner-occupied licenses since March 2026. The maximum fine rose to $5,000 in September 2026.^{17,18,19,23,26}

   • License $650 a year owner-occupied, $750 non-owner-occupied
   • No guest may stay more than 90 consecutive days
   • 10% cap per block face (ordinance of October 2025)
   • New non-owner-occupied licenses paused for 12 months from March 2026

5. 5. Silver Spring

   Montgomery County

   Montgomery County licenses short-term residential rentals of under 30 nights through its housing department (DHCA) for $500 a year. Owners apply with proof of primary residence, notify neighbors, and cannot rent an accessory dwelling unit; the room rental and transient tax is 7%.^20,21,23

   • DHCA license $500 a year, approved or denied in 30 to 60 days
   • Proof of primary residence; accessory dwelling units excluded
   • Neighbors notified and may challenge the application
   • Revoked licenses bar the property for 3 years

6. 6. National Harbor

   Prince George's County

   Prince George's County licenses short-term rentals through DPIE and ties the license to the host's permanent residence, shown by the Maryland Homestead Tax Credit. Owner-occupied listings may host up to 180 days a year and unoccupied ones up to 90, and the hotel tax is 7%.^22,23,24

   • Host must hold the Homestead Tax Credit on the home
   • 180 days a year owner-occupied, 90 days if the owner is away
   • Neighbor and HOA notification; 90-day temporary license while the application is reviewed
   • License expires after one year; number required on the listing

7. 7. Ocean Pines

   Worcester County

   Ocean Pines is unincorporated, so Worcester County's rental license applies to every rental whatever its length, and the Ocean Pines Association adds its own permit and sticker for stays of 28 days or less. The county room tax is 6%, and events for non-lodgers are prohibited.^12,13,25

   • Worcester County rental license for every rental, valid one year
   • Ocean Pines Association permit and sticker after a yearly inspection
   • Two off-street parking spaces (three for dwellings permitted after April 17, 2026)
   • No events or functions for non-lodgers

What the host still handles

• A sales and use tax account with the Comptroller of Maryland (Maryland Tax Connect) for bookings Airbnb does not handle; Baltimore City, Annapolis and Montgomery County applications also ask for the number
• A county room or hotel tax account where the platform does not collect, for example with the Worcester County Treasurer for rentals taken outside Airbnb, or the Garrett County accommodation tax return filed monthly by licensed TVRU owners^{2,3,9,10,12,15,23}

Alarms and extinguisher in every rental under 30 nights

Since October 1, 2026, a host must provide a working fire extinguisher and working smoke and carbon monoxide alarms in any unit offered for fewer than 30 consecutive days, and replace alarms that fail or are more than 10 years old.¹ In force since October 1, 2026

Evacuation diagram and emergency numbers posted

The unit must show an evacuation diagram marking every exit and a list of emergency telephone numbers for police and fire rescue in a conspicuous place.¹ In force since October 1, 2026

Annual fire-safety inspections required by 2028

By July 1, 2028 every county and Baltimore City that allows short-term rentals must require an annual inspection of each unit for the fire-safety standard, and may charge a fee to cover it.¹ Takes effect July 1, 2028

Register with the Comptroller for sales tax

Individuals who rent out their homes or rooms count as accommodations providers and must be registered with the Comptroller of Maryland to collect the 6% sales and use tax.⁹

Ocean City: contact who responds within 60 minutes

An Ocean City licensee must name a person authorized to accept legal notices and handle code violations who can respond within 60 minutes.¹¹ Applies to: Ocean City

Ocean City: occupancy in R-1 neighborhoods

In R-1 single-family and mobile-home districts, occupancy is limited to 2 persons per legal bedroom plus 2 additional persons.¹¹ Applies to: Ocean City

Montgomery County: neighbors can challenge the license

After applying, a Montgomery County host must tell the neighbors, who can submit a challenge to the application within 30 days.²¹ Applies to: Silver Spring

Prince George's County: 180 nights hosted, 90 unhosted

Prince George's County lets owner-occupied listings host up to 180 days a calendar year and listings the owner does not occupy up to 90 days.²⁴ Applies to: National Harbor

Garrett County: two guests per bedroom plus four

A TVRU may have at most eight bedrooms and an overnight occupancy of two persons per bedroom plus four additional persons.¹⁵ Applies to: McHenry

• Ocean City: renting without an active rental license is a municipal infraction with a fine of up to $5,000, and each day the violation continues counts as a separate offense.¹¹
• Annapolis: the maximum fine for short-term rental violations rose from $1,000 to $5,000 in September 2026.²⁶
• Baltimore City: operating without a license, or breaking the rental rules, is a misdemeanor with a fine of up to $500 for each offense, and each day counts separately.⁸
• Montgomery County: a revoked license bars the property from being licensed as a short-term rental or bed and breakfast for 3 years, and unlicensed listings receive a notice of violation.²¹
• Prince George's County: a host renting without a license may be permanently barred from the licensing program and face enforcement action.²²

1. July 1, 2028 Upcoming
   Counties must require annual fire-safety inspections

   By July 1, 2028 each county and Baltimore City that allows short-term rentals must require an annual inspection of every unit for the state fire-safety standard.¹

2. January 1, 2028 Upcoming
   State hotel-tax law overrides county agreements with platforms

   From January 1, 2028 the state hotel rental tax rules prevail over any agreement between a county and a booking platform.²

3. July 1, 2027 Upcoming
   Comptroller collects county hotel tax from large platforms

   Chapter 638 of 2025 takes effect: platforms with $100,000 or more in Maryland bookings or 200 or more booking transactions must collect county and municipal hotel rental tax and pay it to the Comptroller, and counties may not tax short-term rentals at a higher rate than other lodging.^2,3

4. March 2027 Upcoming
   Annapolis moratorium reaches its 12-month end

   The moratorium on new non-owner-occupied licenses runs 12 months from its effective date in March 2026, so it ends around March 2027 unless the council extends it.^19,27

5. October 1, 2026
   Statewide fire-safety rules for short-term rentals take effect

   The Jillian and Lindsay Wiener Short-Term Rental Fire Safety Act, approved April 14, 2026, requires alarms, a fire extinguisher, a posted evacuation diagram and emergency numbers in every unit rented for under 30 consecutive days.¹

6. September 28, 2026
   Annapolis raises the maximum fine to $5,000

   The Annapolis City Council voted to raise the maximum fine for short-term rental violations from $1,000 to $5,000.²⁶

7. March 9, 2026
   Annapolis pauses new non-owner-occupied licenses

   The Annapolis City Council adopted Ordinance O-40-25, a 12-month moratorium on new short-term rental licenses for homes the owner does not live in; renewals and owner-occupied homes are exempt.^19,27

8. February 17, 2026
   Ocean City repeals moratorium on new licenses in R-1 districts

   After a referendum petition qualified, the Mayor and Council repealed the moratorium on new short-term rental licenses in the R-1 and MH districts, so owners there can apply again.²⁸

9. January 1, 2026
   Worcester County room tax rises to 6%

   The hotel rental tax on short-term rentals of four months or less in Worcester County, which includes Ocean City and Ocean Pines, went from 5% to 6%.¹²

10. October 13, 2025
    Annapolis adopts 10% block-face cap

    The Annapolis City Council adopted Ordinance O-17-25 limiting short-term rentals to 10% of the residences on a block face.¹⁸

11. July 22, 2025
    Ocean City voters overturn minimum-stay ordinance

    Ocean City voters rejected, by referendum, the ordinance that set a minimum stay for rentals in its single-family districts; the council later extended its pause on new licenses there.²⁸

Estimate what a home could earn

1. 1. Chapter 9 (House Bill 1221), Public Safety - Short-Term Rental Units - Fire Safety (Jillian and Lindsay Wiener Short-Term Rental Fire Safety Act), 2026 · Maryland General Assembly
2. 2. Chapter 638 (Senate Bill 979), Local Government - Accommodations Intermediaries - Hotel Rental Tax - Collection by Comptroller and Alterations, 2025 · Maryland General Assembly
3. 3. Local Government Article section 20-413 (Comptroller duties, effective July 1, 2027) · Maryland General Assembly
4. 4. Baltimore City Code Article 15, section 48-7, Licensing prerequisites · City of Baltimore Law Library
5. 5. Baltimore City Code Article 15, section 48-9, License fee · City of Baltimore Law Library
6. 6. Baltimore City Code Article 15, section 48-15, Hosts · City of Baltimore Law Library
7. 7. Baltimore City Code Article 15, section 48-16, Hosting platforms · City of Baltimore Law Library
8. 8. Baltimore City Code Article 15, section 48-26, Penalties · City of Baltimore Law Library
9. 9. Maryland Sales and Use Tax Alert: Acts of 2016, Chapter 3, Taxable Price - Accommodations · Comptroller of Maryland
10. 10. Business tax tip 8: Calculating Maryland's Sales and Use Tax · Comptroller of Maryland
11. 11. Ocean City Rental Hub · Town of Ocean City
12. 12. Room Tax · Worcester County Treasurer
13. 13. Rental Information · Worcester County Development Review and Permitting
14. 14. Short-Term Rentals · Baltimore City Department of Housing and Community Development
15. 15. Transient Vacation Rental Units (TVRUs) · Garrett County Government
16. 16. TVRU Licensing Procedures · Garrett County Department of Planning and Land Management
17. 17. Rental Licensing Procedures · City of Annapolis
18. 18. File O-17-25, Limiting Short-term Rentals per Blockface · City of Annapolis Legislative Information
19. 19. Ordinance 40-25, Establishing a 12-Month Moratorium on New Non-owner-occupied Short-Term Rental Licenses (signature copy) · City of Annapolis Legislative Information
20. 20. Short-Term Rentals · Montgomery County Department of Housing and Community Affairs
21. 21. Short-Term Rental FAQs · Montgomery County Department of Housing and Community Affairs
22. 22. Short-Term Rental Licensing · Prince George's County Department of Permitting, Inspections and Enforcement
23. 23. Occupancy tax collection and remittance by Airbnb in Maryland · Airbnb Help Center
24. 24. Prince George's County, MD · Airbnb Help Center
25. 25. ARC Guidelines for Short Term Rentals in Ocean Pines · Ocean Pines Association
26. 26. Fines up to $5,000 face short-term rental violators in Annapolis · CBS Baltimore
27. 27. Annapolis City Council: No new short-term rental licenses for one year · The Capital (Capital Gazette)
28. 28. Ocean City Council repeals short-term rental moratorium after petition qualifies for referendum · WBOC