Is Airbnb Legal in Philadelphia? 2026 Rules, Permits & Taxes

License required

Yes

Taxes on a stay

15.5%

Fine for hosting without a permit

Up to $1,000

Listings showing a permit number

89%

Latest rule change

Aug 22, 2026

Listing figures: AirROI, 12 months to September 2026. A number on a listing doesn't prove the permit or license is valid, and a missing one doesn't prove there is none.

The rules in brief

Who needs it

Anyone renting a primary residence, or a room in it, for 30 consecutive days or less. A home that is not the host's primary residence needs a Rental License with a hotel designation instead.^{1,6,7,8,9,22,25}

Issued by

Department of Licenses and Inspections (L&I), City of Philadelphia

Valid for

The license must be renewed annually through eCLIPSE with proof of residency, current City taxes, no open L&I violations and a renewal inspection.

Processing

L&I reviews online applications within five business days. The virtual inspection needs at least 10 business days' notice, and an application whose inspection is not scheduled within 60 days of approval is cancelled.

On listings

The number must appear on every listing

Platform checks

A dwelling may be operated as limited lodging only through a booking agent licensed by the City, and the host must give the platform proof of an active license before listing. When L&I notifies a platform that a license is missing, the platform must remove the listing within five business days, and platforms report their Philadelphia bookings to L&I every quarter.

Fees

Who qualifies

• Primary residence only: an owner who lives in the home and holds the Homestead Exemption, or a tenant who lives there more than half the year with the owner's written authorization
• In the Tenth Council District only an owner-occupant qualifies; a tenant cannot hold the license
• A Commercial Activity License, current City taxes and no outstanding L&I violations on the property
• A zoning permit for limited lodging and a lead-free or lead-safe certification from the Department of Public Health
• A passed L&I inspection, usually virtual, before the license is issued and again at each renewal

How to apply

1. 1 Register the business with the City: get a Philadelphia Tax Identification Number and the free Commercial Activity License before applying for anything else.
2. 2 Get a zoning permit for limited lodging from L&I (a home with no primary resident needs a visitor-accommodations permit instead). The permit must be in hand before the license application.
3. 3 Apply for the Limited Lodging Operator License in eCLIPSE with proof of residency and ownership or a lease, the zoning permit and the lead-safe certification, and pay the $20 application fee.
4. 4 After L&I approves the application, schedule the virtual inspection (at least 10 business days' notice), pass it and pay the balance of the $150 license fee.
5. 5 Download the license from eCLIPSE, put the number in every listing and list only through a licensed booking agent such as Airbnb.
6. 6 Notify the building: by the earlier of 30 days after getting the license or seven business days before first listing the home with a booking agent, tell the owner (if you rent), the residents of every unit in the building and the other owners you know of.

Permit rules

Limited Lodging Operator License required

Renting a primary residence, or a room in it, for 30 consecutive days or less requires a Limited Lodging Operator License from L&I. Operating without it violates Chapter 9-3900 of the Philadelphia Code.^1,6 In force since April 1, 2022

Commercial Activity License and tax account

Hosts need a free Commercial Activity License to rent a home short term, must be current on all City taxes, and cannot have outstanding L&I violations on the property.^6,7,8

List only through a licensed booking agent

A dwelling may be operated as limited lodging only through a booking agent licensed by the City, and the operator must show the platform that the license is active before listing.^1,3 In force since April 1, 2022

License number in every advertisement

The operator must show the license number conspicuously in all advertising and communications offering the dwelling as limited lodging.^1,25 In force since April 1, 2022

Platforms remove unlicensed listings in five business days

When the City notifies a booking agent that the required license is missing, the platform must remove the listing within five business days and confirm it has done so. L&I began sending these notices on July 12, 2023.^3,17 In force since July 12, 2023

Platforms report bookings to L&I each quarter

Booking agents report the operator, license number and street address for every Philadelphia booking to L&I each quarter, which is how the City matches listings to licenses.^9,15

Primary residents only

Only an owner or tenant who lives in the property as a primary residence is eligible for the license, and owners prove residency with a Pennsylvania or Philadelphia identification card.^1,2,6 In force since April 1, 2022

Owners need the Homestead Exemption

An owner counts as a primary resident only if they are a natural person who lives in the home and is entitled to the Homestead Exemption for it.^2,8 Applies to: owners

Tenants need the owner's signed authorization

A tenant must live in the home as a primary domicile for more than half the year, hold an active lease and Rental License, and obtain a signed statement from the owner authorizing the short-term rental.^6,8 Applies to: tenants

Tenth Council District: owners only

In the Tenth Council District a primary resident must also own the property to get the license; renters there cannot hold one.^1,6 Applies to: Tenth Council District · In force since April 1, 2022

Homes that are not a primary residence need hotel-type zoning

A unit with no primary resident is a visitor-accommodations use, which needs a Rental License with a hotel designation and a zoning district that allows it; the zoning code does not permit the use in lower-density residential neighborhoods, and a refused permit can be appealed to the Zoning Board of Adjustment.^8,25 Applies to: non-primary residences

Zoning permit comes first

The property must be zoned for limited lodging, and the zoning permit must be submitted with the license application; limited lodging is an accessory use to a household-living dwelling.^6,8

A city license does not override your lease or HOA

L&I's permit does not cancel any ban on short-term rental in a lease, HOA agreement or similar contract, so apartment and condo hosts check those first.^8,25 Applies to: tenants and condo owners

Notify the building and the owner

Since August 22, 2026 a licensee must notify the owner (if the licensee rents) and, in writing, the residents of every unit in the building and the other owners known to the licensee, by the earlier of 30 days after getting the license or seven business days before first listing the home with a booking agent. Landlords of multi-family buildings must also say in each lease whether limited lodging is licensed in the building.⁴ In force since August 22, 2026

L&I inspection before issue and at renewal

Applicants must pass an L&I inspection, usually done by video, before the license is issued and again to renew it; a failed inspection can be repeated once within 60 days.^6,9

Lead-safe certification

The property must be certified as lead-free or lead-safe by the Department of Public Health before the license is issued or renewed.^6,9

Smoke and carbon monoxide alarms

Limited lodging homes need smoke alarms in each bedroom, in the hallway near the bedrooms and on every floor including basements, plus carbon monoxide alarms within 15 feet of each bedroom entrance.^7,25

No yearly night cap; 30 consecutive days per guest

Philadelphia sets no limit on rental nights per year for a licensed primary residence. The only time limit is that no guest may stay more than 30 consecutive days; the 180-day yearly cap that applied before 2022 was deleted.^2,3,6

Three unrelated occupants at most

A limited lodging home cannot be occupied by more than three people, owner and renters included, who are unrelated by blood, marriage, life partnership, adoption or foster-child status.^2,7

Guests of lodgers 8 a.m. to midnight; noise rules

Renters must be told that they may have guests only between 8 a.m. and midnight and that excessive noise is prohibited and fined.^7,25

Contact person for complaints

Hosts must give renters the contact information of the owner or a designee, who must handle any complaints, and must tell renters the trash and recycling days and provide proper containers.^7,25

No signs or conversion

A limited lodging home may not carry lodging signs, may not be changed so that it no longer resembles a private residence, and may not have a separate street-visible entrance for the rental.^7,9

Keep one year of records

Hosts keep records for at least one year showing that the home remained their primary residence, the dates it was rented and the number of renters, and give them to the City on request.^2,7

Ownership disclosure for companies

If the owner is not a natural person or a publicly traded company, the application must name each natural person with an equity interest above 49%, or the two with the largest interest.^1,3 Applies to: company-owned properties · In force since April 1, 2022

Median nightly rate, booked nights

$135

Taxes on that night (15.5%)

$21

Guest pays, before Airbnb and cleaning fees

$156

What the host still handles

• A Philadelphia Tax Identification Number and tax account, plus the free Commercial Activity License, before applying for the Limited Lodging Operator License
• A Business Income and Receipts Tax (BIRT) ID, which the L&I license page lists as a requirement
• A City Hotel Tax account on the Philadelphia Tax Center, with a return due on the 15th of every month for the previous month's rentals, for any booking a platform does not collect and remit; the City tells hosts to confirm that the platform is doing so
• A Pennsylvania Sales, Use, and Hotel Occupancy Tax license for direct bookings made without a booking agent^{10,11,12,13,14,26}

• Operating limited lodging without the required license is a Class II offense for each day of violation, with a maximum fine of $1,000 per violation.^3,5
• Knowingly giving false or misleading ownership or contact information is a Class III offense (up to $2,000 per violation), and each day is a separate offense.^3,5
• A fine of $2,000 for each monthly Hotel Tax return not filed, on top of interest and penalties on late payment.¹⁰
• Platforms must remove a listing within five business days of an L&I notice that the license is missing, so an unlicensed listing is taken down even before any fine.^3,17

1. August 22, 2026
   Building notification rule takes effect

   Sixty days after the June 23, 2026 signing, licensees must notify the owner, residents and other owners in the building, and landlords must disclose limited lodging in multi-family leases.⁴

2. June 23, 2026
   City Controller reports on short-term rental compliance

   The Controller's review found that 1,327 of 3,734 Airbnb listings analyzed in one month had inactive, expired or ineligible licenses, and recommended validating platform license data against City records and reviewing penalties.^15,16

3. June 23, 2026
   Bill No. 260241 adds building notice duties

   Council passed Bill No. 260241 on June 11, 2026 and the Mayor signed it on June 23, 2026. It requires a licensee to notify the owner and the building's residents and owners, and requires landlords of multi-family buildings to disclose in leases whether limited lodging is licensed; it takes effect 60 days after signing.⁴

4. June 11, 2026 Lapsed
   Council adopts the fiscal 2027 budget without the short-term rental tax

   City Council approved the fiscal 2027 operating budget on June 11, 2026 without the proposed hotel and short-term rental tax; it did not have the nine votes needed for passage. The hotel tax on a Philadelphia stay remains 15.5%.²⁰

5. May 27, 2026 Not in force
   Mayor proposes a 6 percent increase in taxes on short-term rentals

   The Parker administration announced a proposal for a 6 percent increase on existing taxes applied to short-term rentals, together with a 0.6 percent hotel tax increase, to fund street-homelessness programs; it needed Council adoption and authorization by the Commonwealth.²¹

6. July 12, 2023
   L&I starts telling platforms to delist unlicensed rentals

   L&I began notifying booking agents such as Airbnb and Vrbo to remove unlicensed listings within five business days, after finding that nearly 85% (about 1,500 to 1,700) of short-term rentals in the city were unlicensed.¹⁷

7. July 21, 2022
   Platform deadline moved to January 1, 2023

   The City extended the deadline for booking platforms to collect valid license numbers from July 1, 2022 to January 1, 2023, while saying the legal requirement to be licensed was unchanged.¹⁸

8. April 1, 2022
   License and zoning requirements take effect

   The licensing sections of Bill No. 210081 took effect on April 1, 2022.¹

9. June 23, 2021
   Bill No. 210081 rewrites Philadelphia's short-term rental rules

   Council's Bill No. 210081, approved June 23, 2021, created the Limited Lodging Operator License and the booking-agent license, required primary-resident hosting and listing through a licensed platform, and removed the earlier yearly limits of 90 and 180 days on limited lodging.^1,3

Estimate what a Philadelphia home could earn

1. 1. Philadelphia Code Section 9-3909, Limited Lodging Operator License · City of Philadelphia (American Legal Publishing)
2. 2. Philadelphia Code Section 14-604(13), Limited Lodging (zoning code) · City of Philadelphia (American Legal Publishing)
3. 3. Bill No. 210081, limited lodging and hotels booking agent licensing (text) · Philadelphia City Council
4. 4. Bill No. 260241, notice to owners and residents of a building regarding limited lodging (certified copy) · Philadelphia City Council (American Legal Publishing)
5. 5. Philadelphia Code Section 1-109, Fines and Penalties · City of Philadelphia (American Legal Publishing)
6. 6. Get a Limited Lodging Operator License · City of Philadelphia Department of Licenses and Inspections
7. 7. Rent your property (short-term) · City of Philadelphia
8. 8. FAQ: Can I rent my unit as a short-term rental/limited lodging? What permits or licenses do I need? (PZ_003, Rev 9.2025) · City of Philadelphia Department of Licenses and Inspections
9. 9. Amendments to Regulations Under Sections 9-3909 and 9-3910 of The Philadelphia Code · City of Philadelphia Department of Licenses and Inspections and Department of Public Health
10. 10. Hotel Tax · City of Philadelphia Department of Revenue
11. 11. Sales, Use, and Hotel Occupancy Tax · City of Philadelphia Department of Revenue
12. 12. Operating or considering a short-term rental in Philly? Read this first (August 25, 2026) · City of Philadelphia Department of Revenue
13. 13. Home-sharing/Third-party Broker Rentals · Pennsylvania Department of Revenue
14. 14. Hotel Occupancy Tax - Booking Agents · Pennsylvania Department of Revenue
15. 15. Short-Term Rentals in Philadelphia: Compliance, Licensing, and Enforcement (June 23, 2026) · Office of the City Controller, City of Philadelphia
16. 16. City Controller Finds One-Third of Short-Term Rentals Cannot Be Matched to City's Licensing Records (June 23, 2026) · Office of the City Controller, City of Philadelphia
17. 17. Unlicensed Short-Term Rental Properties Delisting Process Begins (July 2023) · City of Philadelphia Department of Licenses and Inspections
18. 18. Updated guidance on required zoning permits and licenses for Philadelphia short-term rentals and hosts (July 2022) · City of Philadelphia Department of Commerce
19. 19. Licenses and Inspections Business Licenses (OpenDataPhilly) · City of Philadelphia
20. 20. Philadelphia City Council approved the Fiscal Year 2027 operating and capital budgets on Thursday, June 11 · Philadelphia City Council
21. 21. Parker Administration Announces Tentative Agreement on Revised Hotel and Short-Term Rental Tax Proposal as Part of FY27 One Philly, One Future Budget (May 27, 2026) · City of Philadelphia Office of the Mayor and Department of Revenue
22. 22. Get a Zoning Permit to change the use of a property · City of Philadelphia Department of Licenses and Inspections
23. 23. The Short-Term Rental Industry in Pennsylvania: A Staff Study (March 2025) · Joint State Government Commission, Pennsylvania General Assembly
24. 24. Get a Rental License · City of Philadelphia Department of Licenses and Inspections
25. 25. Philadelphia, PA · Airbnb Help Center
26. 26. Occupancy tax collection and remittance by Airbnb in Pennsylvania · Airbnb Help Center