Palm Springs Short-Term Rental Laws (2026)
Permits, taxes, caps, and penalties for Airbnb & vacation rentals in Palm Springs, California — from official sources, with citations. Reviewed 2026-07-02.
Permitted with Conditions
Palm Springs allows vacation rentals but tightly rations them â annual booking caps (26 contracts for new permits), a 20% per-neighborhood density ceiling with waitlists, and strict occupancy rules make this a compliance-heavy market.
Can you operate a short-term rental in Palm Springs?
Vacation rentals are legal in Palm Springs under Municipal Code Chapter 5.25 (Ordinance 1918), but this is one of the most regulated STR markets in the country. Every rental needs an annual Vacation Rental Registration Certificate and a TOT permit, the number of times you can rent per year is capped, and once 20% of homes in a neighborhood hold certificates, new applicants go on a waitlist.
Registration certificate required
You must hold a current Vacation Rental Registration Certificate from the city's Vacation Rental Compliance Department before renting short-term; an annual registration fee applies (see city fee schedule).
Annual booking caps
Permits issued after October 17, 2022 are limited to 26 rental contracts per calendar year. Legacy permits (issued on or before that date) get 32 contracts plus up to 4 extra in July-September (36 max).
20% neighborhood density cap
When 20% of the dwelling units in a defined neighborhood hold STR certificates, new standard applications are waitlisted â check your neighborhood's current percentage before buying.
TOT permit
A Transient Occupancy Tax permit is required alongside the registration certificate, with a one-time non-refundable $25 fee.
Junior permits
A junior permit category exists at roughly half the standard fee for qualifying smaller properties â ask the Vacation Rental Compliance Department whether your property qualifies.
Permits & licenses in Palm Springs
Expect a real application process through the Vacation Rental Compliance Department: certificate, TOT permit, and ongoing per-stay obligations. Check the density map first â in capped neighborhoods you'll be waitlisted.
- 1
Check neighborhood density
Confirm your neighborhood is under the 20% certificate cap; if it's at the cap, new standard permits go on a waitlist.
- 2
Apply for the registration certificate
File with the Vacation Rental Compliance Department and pay the annual registration fee (see city fee schedule); junior permits cost about half where they apply.
- 3
Get the TOT permit
Apply for the Transient Occupancy Tax permit ($25 one-time, non-refundable) so you can collect and remit the 11.5% TOT.
- 4
Set up compliant operations
Line up a responsible contact, guest registration/meet-and-greet procedures, and occupancy tracking to stay within the per-bedroom and contract limits.
- 5
Renew and count contracts
The certificate renews annually, and you must track rental contracts against your 26 (or 32+4) annual cap.
Fees: Annual registration fee applies (see city fee schedule); junior permits about 50% of standard; TOT permit $25 one-time.
Short-term rental taxes in Palm Springs
Palm Springs levies an 11.5% Transient Occupancy Tax on vacation rentals (13.5% applies to group-meeting hotels, not typical STRs). Hosts must hold a TOT permit and remit to the city.
| Level | Tax | Rate | Collected by | Filing |
|---|---|---|---|---|
| City | Transient Occupancy Tax (vacation rentals) | 11.5% | Host (platforms may collect â confirm with the city) | To City of Palm Springs per TOT schedule |
| City | TBID assessment (tourism business improvement district) | see source | Varies | With TOT (see city TOT/TBID page) |
These rules change — Palm Springs can amend them any month.
Compliance Watch monitors Palm Springs's official sources and emails you the day permits, caps, or taxes change: what changed, old vs. new, and what to do. $49/yr per property, 100% credited toward Tenby.
Watch my CA property →Operating rules
Occupancy limits
Overnight occupancy is capped at 2 persons per bedroom up to 8 total, plus up to 2 children age 12 or under, and up to 4 additional daytime guests.
§ Palm Springs Municipal Code Ch. 5.25
Contract counting
Every rental agreement counts against your annual cap (26 new / 32+4 legacy) â spreading bookings into longer stays is how most operators manage the limit.
§ Palm Springs Municipal Code Ch. 5.25
Responsible-party and guest requirements
The program includes owner/agent responsibility requirements for guest conduct, noise, and neighborhood impact, administered by the city's dedicated Vacation Rental Compliance Department.
§ Ordinance 1918 Tool Kit (see city)
Homeshare option
A separate homeshare category covers owners renting rooms while remaining on site â rules differ from whole-home vacation rentals (see city program pages).
§ Palm Springs vacation rental program
Penalties for illegal short-term rentals in Palm Springs
Palm Springs runs a dedicated compliance department and enforces actively; fines and certificate suspension/revocation are the levers. Exact fine amounts are set by the city (see source).
- ⚠Operating without a registration certificate is a violation of Municipal Code Ch. 5.25 (fines per city schedule â see source)
- ⚠Exceeding contract caps or occupancy limits can trigger citations and jeopardize the certificate
- ⚠A dedicated Vacation Rental Compliance Department (with a hotline) investigates complaints
- ⚠Neighborhoods at the 20% density cap accept no new standard certificates â losing a certificate in a capped neighborhood may mean a waitlist to return
Official sources
- [1]City of Palm Springs â Vacation Rentals
- [2]City of Palm Springs â Ordinance No. 1918 Tool Kit and FAQs
- [3]City of Palm Springs â Vacation Rental TOT and TBID Information
- [4]City of Palm Springs â Transient Occupancy Tax (TOT)
- [5]City of Palm Springs â Vacation Rental Neighborhood Percentage (Density)
- [6]Palm Springs Municipal Code Chapter 5.25 â Vacation Rentals (eCode360)
Summarized from the official sources above as of 2026-07-02. Informational, not legal advice — always confirm requirements with the jurisdiction before acting.
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