Colorado Short-Term Rental Laws (2026)

Colorado short-term rental compliance is primarily address-specific. State tax rules apply to taxable lodging, while cities and counties decide whether a property may operate, which license or permit is required, and what zoning, insurance, safety, occupancy, and local-tax rules apply.

This 2026 guide uses current official materials from the Colorado Department of Revenue, Denver, Colorado Springs, Fort Collins, and Aurora. It is a starting point, not a substitute for confirming the rules for the exact property address before listing or accepting bookings.

Colorado Short-Term Rental Laws - Quick Answer

State operating license: The official state materials reviewed do not establish one statewide short-term rental operating license. Local authorization is usually the decisive step.
State sales tax: Colorado imposes sales tax on the entire amount charged for taxable rooms and accommodations. The state rate is 2.9%, with additional state-administered and home-rule local taxes possible.
Thirty-day exemption: A room or accommodation rented to a permanent resident under a written agreement for at least 30 consecutive days may qualify for the state exemption if all conditions are met.
Marketplace bookings: A marketplace facilitator must collect applicable state and state-administered sales taxes, county lodging tax, and local marketing district tax on marketplace lodging. Municipal home-rule duties still need separate review.
Local approval: Denver, Colorado Springs, Fort Collins, Aurora, mountain towns, and counties use different eligibility and licensing systems.

Do not assume that a Colorado sales tax account or an Airbnb tax collection arrangement authorizes the property to operate. Tax registration and local land-use approval are separate compliance tracks.

Colorado State Tax Rules for Short-Term Lodging

The Colorado Department of Revenue's April 2026 Rooms and Accommodations guidance says Colorado sales tax applies to the furnishing of regular sleeping rooms or units in hotels, apartment hotels, inns, lodging houses, guest houses, motels, and similar accommodations. It also applies to specified lodging spaces in auto camps and trailer courts or parks.

The state sales tax rate is 2.9%. That is not necessarily the guest's total tax rate. Depending on the address, a booking may also involve city, county, special-district, county lodging, visitor-benefit, local marketing-district, or municipal lodging taxes.

Which Charges Are Taxable?

Colorado DOR says tax generally applies to the entire amount charged for the room or accommodation. A separately stated cleaning charge is generally part of the taxable lodging charge. Optional services that are genuinely available without renting the accommodation may be treated differently, so operators should classify fees using current DOR guidance rather than assuming every separately stated charge is exempt.

Thirty-Consecutive-Day Exemption

Colorado sales tax does not apply to an accommodation rented to a natural person when the renter is a permanent resident of the accommodation and has a written agreement for at least 30 consecutive days. A long reservation does not automatically qualify - the permanent-resident and written-agreement requirements both matter. State-administered local taxes extend a related exemption to qualifying legal entities under the conditions described by DOR.

Sales Tax License and Marketplace Responsibilities

Anyone offering taxable rooms or accommodations must obtain a Colorado sales tax license, collect the applicable tax, and file and remit as required. A person engaged exclusively in exempt accommodation rentals does not need that state sales tax license.

For rooms offered through an online marketplace, Colorado says the marketplace facilitator must collect and remit applicable state and state-administered taxes, including applicable county lodging and local marketing-district taxes. This does not eliminate the host's need to:

confirm what the platform collects for the exact listing;
register or file zero returns where an account or local rule requires them;
collect taxes on direct bookings that the platform does not handle; and
check municipal home-rule taxes, which Colorado DOR does not administer.

Colorado's DR 1003 lodging tax publication identifies county lodging and local marketing-district rates administered by the state. A home-rule city may require a separate local account and return.

Denver Short-Term Rental Rules

Denver defines a short-term rental as a residential dwelling unit offered for one to 29 days. The City and County of Denver's official STR page requires a short-term rental license, and the rental must be the license holder's primary residence.

Denver defines primary residence as the place where a person's habitation is fixed for the license term and the person's usual place of return. A person can have only one primary residence. The city may consider legal addresses, voting and vehicle records, tax records, employment, where the applicant actually returns, and how often the unit is rented. A homestead or tax designation alone does not establish eligibility.

Denver hosts should also:

obtain and maintain the required lodger's tax account;
provide owner permission if the applicant is a renter;
place the STR license number in advertisements;
maintain at least $1 million in liability coverage, either independently or through qualifying platform coverage;
follow Denver safety, zoning, tax, and operating rules; and
submit renewal before expiration.

Denver says a complete pending renewal can continue operating while the renewal is reviewed. A late renewal can cause a platform to disable new reservations. Operators should use Denver's current application and renewal pages rather than relying on an old fee or processing-time summary.

Colorado Springs Short-Term Rental Rules

Colorado Springs requires a city short-term rental permit before operating. The city distinguishes owner-occupied and non-owner-occupied rentals.

Owner-Occupied and Non-Owner-Occupied

Colorado Springs defines an owner-occupied STR as a property physically occupied by the owner for at least 185 days per year. New non-owner-occupied rentals are prohibited in specified single-family zoning districts, including R-E, R-1 9, R-1 6, and single-family PDZ districts, subject to the city's current exceptions. In zones where a non-owner-occupied rental is allowed, it generally must be at least 500 feet from another non-owner-occupied STR.

Permit Requirements

The city's current materials list an annual permit fee of $124.95 per listing, separate from sales-tax licensing. A permit is valid for one year and does not transfer with the property. The application requires items such as:

a Colorado Springs sales tax license customer ID;
a safety self-inspection certification;
proof of at least $500,000 in property liability insurance or qualifying platform coverage;
a 24-hour local contact who can respond within one hour;
the owner-occupied or non-owner-occupied classification; and
acknowledgment of the city's operating rules.

The permit and Good Neighbor Guidelines must be displayed in the rental. Verify zoning and separation before paying for an application because a complete tax account does not make an ineligible parcel eligible.

Owners considering this market can also review Checkmate's Colorado Springs Airbnb management page.

Fort Collins Short-Term Rental Rules

Fort Collins treats rentals offered for less than 30 consecutive days as short-term rentals. Both primary and non-primary rentals exist, but the city's STR zoning map and licensing page control where each type is allowed.

Green map areas: primary STRs only.
Yellow map areas: primary and non-primary STRs.
No mapped color: STRs are not allowed under the city's map guidance.

A primary STR owner must live at the property for at least nine months per year and provide proof of residence. Only the owner may operate the STR, and the property may be rented to only one party at a time. Accessory dwelling units may not be used as STRs under the current city FAQ.

Licensing, Tax, and Renewal

Fort Collins currently lists a $500 non-refundable initial license fee and a $500 annual renewal fee. Renewal is due on or before June 30 and is not prorated. Operators must obtain the city's sales and lodging tax license before submitting the STR application.

The city currently lists a combined 11.05% accommodations tax - 8.05% combined sales tax plus a 3% city lodging tax. Tax rates and district boundaries can change, so confirm the exact address in the city's tax system. Platform collection may cover bookings processed through the platform, while direct bookings require the operator to collect and remit applicable tax.

Fort Collins also requires off-street parking based on bedrooms rented - one space for one or two bedrooms, two spaces for three or four, and three spaces for five or six. A sale does not transfer the STR license. A new owner must apply under current rules and deadlines.

For local operational support, see Checkmate's Fort Collins Airbnb management page.

Aurora Short-Term Rental Rules

Aurora treats rentals for less than 30 days as lodging services. Under the city's current Short-Term Rentals FAQ, a residential STR generally must be the operator's primary residence, not a separate investment property, and must be allowed by the landlord or HOA.

Aurora requires a General Business and Lodger's Tax License before listing or operating, and the license number must appear in online advertisements. The October 2025 FAQ lists a $45 initial application and two-year license fee and a $27 two-year renewal fee.

Aurora Operating and Tax Rules

Only one booking group may occupy the home at a time.
Whole-home STR use is limited to 180 days per year under the current FAQ.
The host should confirm that homeowner's or platform insurance actually covers STR activity.
The business must remain secondary to residential use and comply with noise and home-occupation restrictions.

Aurora's city lodger's tax rate is 8%. The total rate varies by whether the property is in Adams, Arapahoe, or Douglas County. A platform may collect some taxes, but Aurora says the operator remains responsible for confirming correct collection and filing.

See Checkmate's Aurora Airbnb management page for market-specific management information.

Other Colorado Cities and Counties

Rules in resort communities and unincorporated counties can be more restrictive than the Front Range examples above. A jurisdiction may use license caps, primary-residence rules, zoning overlays, neighborhood notice, local-agent requirements, fire inspections, septic limits, parking standards, occupancy formulas, or separate excise and lodging taxes.

For any address outside the cities above, confirm all of the following with both the municipality and county:

Whether the parcel is inside city limits or unincorporated.
Whether STR use is allowed in the zoning district and building type.
Whether a cap, waitlist, moratorium, or transfer restriction applies.
Which business, lodging, sales-tax, and special-district accounts are required.
Whether an inspection, fire review, septic approval, or local responsible agent is required.
What occupancy, parking, noise, trash, signage, and advertising rules apply.

Colorado Host Compliance Checklist

Confirm jurisdiction. Use the property address to identify the municipality, county, zoning district, and any special district.
Confirm eligibility before spending money. Check primary-residence, owner-occupancy, zoning, spacing, cap, HOA, lease, and building-type restrictions.
Register for taxes. Obtain the Colorado sales tax license when required and open every required home-rule city, county, lodging, and marketing-district account.
Apply for local approval. Complete the city or county STR permit, business license, and inspection process before advertising when local rules require it.
Document insurance and safety. Keep proof of the required coverage, smoke and carbon-monoxide alarms, fire extinguishers, evacuation information, and inspection records.
Configure listings correctly. Display license numbers and required disclosures, and confirm minimum-stay, occupancy, and booking settings.
Audit platform collection. Determine exactly which taxes Airbnb, Vrbo, or another marketplace collects for the listing and handle direct-booking obligations separately.
Calendar renewals. Track every license, tax-return, inspection, and local-contact update deadline.

Common Colorado Compliance Mistakes

Assuming the 2.9% state rate is the guest's total lodging tax.
Assuming platform tax collection replaces a city STR license.
Applying before checking zoning, spacing, or primary-residence eligibility.
Using an outdated fee schedule or relying on a prior owner's nontransferable permit.
Treating a 30-day booking as exempt without a qualifying written agreement and permanent-resident status.
Failing to account for direct bookings, taxable cleaning charges, or home-rule municipal returns.

Official Sources

Bottom Line

Colorado hosts need both tax compliance and address-specific local authorization. Start with the state sales-tax treatment, then confirm zoning, primary-residence status, permits, insurance, operating limits, and local lodging taxes with the city and county responsible for the property. This guide is general information, not legal or tax advice.