San Diego Short-Term Rental Laws (2026)
Permits, taxes, caps, and penalties for Airbnb & vacation rentals in San Diego, California — from official sources, with citations. Reviewed 2026-07-02.
Permitted with Conditions
Short-term rentals are legal in San Diego but require a Short-Term Residential Occupancy (STRO) license under a four-tier system, with capped and currently sold-out whole-home licenses for Mission Beach (Tier 4) and limited remaining citywide whole-home licenses (Tier 3).
Can you operate a short-term rental in San Diego?
San Diego regulates any rental of a dwelling unit (or part of one) for less than one month as Short-Term Residential Occupancy under Municipal Code Chapter 5, Article 10. Every host needs an STRO license in one of four tiers before operating, and operating without one has been a violation since May 1, 2023. Whole-home rentals are capped: Tier 3 licenses are limited to 1% of San Diego's total housing units, and Tier 4 (Mission Beach) is capped at 30% of that community's dwelling units and is currently fully allocated.
STRO license required
Renting a dwelling unit or part of one for less than one month requires an STRO license. Operating without a license after May 1, 2023 is a violation subject to enforcement, civil penalties, and license revocation.
Four-tier system
Tier 1 covers part-time rental of 20 days or less per year; Tier 2 is home sharing where the host lives onsite (absences up to 90 days/year allowed); Tier 3 is whole-home rental over 20 days/year outside Mission Beach; Tier 4 is whole-home rental in Mission Beach.
Whole-home caps and lottery
Tier 3 is capped at 1% of San Diego's total housing units (as of July 2, 2026: 4,825 issued, 781 remaining). Tier 4 (Mission Beach) is capped at 30% of the Mission Beach Community Planning Area's units and is exhausted â 1,097 issued, 0 remaining, application period closed and waitlist exhausted.
One license per host, non-transferable
A host may hold only one STRO license at a time and may not operate more than one dwelling unit for STRO. Licenses are not transferable between owners or to a different dwelling unit.
Tier 3/4 minimum use requirement
Tier 3 and Tier 4 hosts must actually use the license at least 90 days per year and submit quarterly reports demonstrating utilization â you can't sit on a scarce whole-home license.
Permits & licenses in San Diego
Licenses are issued by the Office of the City Treasurer, are valid for two years from issuance, and require active city tax accounts before you apply. Tier 3 has limited remaining capacity and Tier 4 is closed, so tier availability is the first thing to check.
- 1
Get a TOT certificate
Obtain a Transient Occupancy Registration Certificate from the Office of the City Treasurer before renting to guests staying less than one month. An active TOT certificate is a prerequisite for the STRO application.
- 2
Open a Rental Unit Business Tax account
Property owners need a current Rental Unit Business Tax account; non-owner hosts (e.g., lessees) need a Business Tax Certificate plus right-to-occupy documentation such as landlord permission.
- 3
Choose your tier and apply
Pick the tier matching your use (Tier 1 part-time, Tier 2 home share, Tier 3 whole home citywide, Tier 4 Mission Beach). Tier 3 has limited licenses remaining; Tier 4 applications are closed with the waitlist exhausted.
- 4
Pay fees and receive license
Pay the non-refundable application and license fees. The license is valid for two years from issuance and is tied to you and the specific dwelling unit.
- 5
Maintain compliance
Tier 3/4 hosts must meet the 90-day annual utilization minimum and file quarterly utilization reports; all hosts must keep tax accounts current and renew before the two-year expiration.
Fees: Effective March 1, 2025: Tiers 1-2 pay a $33 application fee plus a $193-$284 license fee; Tiers 3-4 pay a $41 application fee plus a $1,129 license fee. All fees are non-refundable; licenses last two years.
Short-term rental taxes in San Diego
California has no state lodging tax, so the burden is city-level: San Diego TOT (rate varies by tax zone since Measure C took effect May 1, 2025), a possible TMD assessment for large lodging businesses, and the annual Rental Unit Business Tax on all residential rentals. Operators must collect TOT from guests at the same time as rent and remit monthly.
| Level | Tax | Rate | Collected by | Filing |
|---|---|---|---|---|
| City | Transient Occupancy Tax (TOT) | 11.75% / 12.75% / 13.75% by tax zone (effective May 1, 2025, per Measure C; was 10.50% through April 30, 2025) | Varies | Monthly, due by the last day of the following month |
| District | Tourism Marketing District (TMD) assessment | 2.00% â applies only to lodging businesses with 70 or more rooms, so most STR hosts are exempt | Host | Remitted with TOT (see source) |
| City | Rental Unit Business Tax | $50.00 base + $5.00 per unit for single family/condo (higher schedules for larger properties), plus $4.00 state-mandated accessibility fee per AB 2164 | Host | Annually, generally due March 1 |
These rules change — San Diego can amend them any month.
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Watch my CA property →Operating rules
Minimum-stay threshold defines STRO
Any stay of less than one month (first calendar day to the corresponding day the next month) is short-term occupancy subject to the STRO ordinance and TOT. Rentals of a month or longer fall outside the STRO program.
§ SDMC Ch. 5, Art. 10, Div. 1
Local contact and exterior notice
Hosts must designate a local contact and post a notice on the exterior of the dwelling, visible from the sidewalk or public right-of-way, showing the TOT certificate number, STRO license number, and host/local contact phone number (8.5x11 inches, all caps, black bold 20-point font). Contact changes must be filed with STRO Administration.
§ STRO Host Operating Requirements
Good Neighbor Policy
The city publishes a Good Neighbor Policy that hosts must maintain and make available to guests, covering neighborhood conduct expectations (noise, trash, parking).
§ STRO Host Operating Requirements
TOT collection at booking
TOT must be collected from guests at the same time as rent; the operator (owner, lessee, or managing agent) is responsible for collection and remittance to the City Treasurer each month.
§ SDMC Ch. III, Art. 5, Div. 1
Platform rules and quarterly reporting
Hosting platforms have their own obligations under the ordinance (SDMC Ch. 5, Art. 10, Div. 2), and Tier 3/4 hosts must file quarterly reports demonstrating the 90-day minimum utilization.
§ SDMC Ch. 5, Art. 10, Div. 2
Penalties for illegal short-term rentals in San Diego
Enforcement has been live since May 1, 2023: unlicensed operation triggers enforcement actions, civil penalties, and license revocation, and tax delinquency accrues daily penalties. Losing a Tier 3 or Tier 4 license is especially costly because remaining capacity is scarce or zero.
- ⚠Operating STRO without a license after May 1, 2023 is a violation subject to enforcement actions, civil penalties, and revocation of any license held (STRO Program).
- ⚠Late TOT/TMD remittance: penalty of 1% of the amount due for the first delinquent day plus one-third of 1% per day thereafter, capped at 25% (SDMC Ch. III, Art. 5).
- ⚠Late Rental Unit Business Tax: penalty of $25.00 or 10% of the tax due, whichever is greater, plus 1% monthly interest; the Treasurer bills retroactively up to three years.
- ⚠STRO application and license fees are non-refundable, and licenses are non-transferable â a revoked Tier 4 (Mission Beach) license cannot currently be replaced since 0 licenses remain and the waitlist is exhausted.
- ⚠Tier 3/4 hosts who fail the 90-day annual utilization requirement (verified via quarterly reports) risk losing their capped license.
Official sources
- [1]Short-Term Residential Occupancy (STRO) â City of San Diego Office of the City Treasurer
- [2]Transient Occupancy Tax (TOT) â City of San Diego Office of the City Treasurer
- [3]Rental Unit Business Tax Fees â City of San Diego
- [4]Rental Unit Business Tax General Information â City of San Diego
- [5]STRO Host Operating Requirements (PDF) â City of San Diego
- [6]STRO License Local Contact Update Form (PDF) â City of San Diego
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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