Short-term rental rules in Palm Beach County have gotten more layered over the past few years, and buyers eyeing a condo or single-family home as an Airbnb income property need to clear three separate hurdles before they ever list a night on the calendar: a state license, a county tax registration, and whatever the HOA or condo documents say.
Short-Term Rental Rules in Palm Beach County Start With a State License
Florida’s Division of Hotels and Restaurants requires a vacation rental license for any property rented short-term, classified as either a Vacation Rental Dwelling or a Vacation Rental Condo. The application runs about $50 plus roughly $170 for a full year, with a small added education fee for single-unit owners. Skipping this step is one of the most common mistakes first-time investors make, since the county tax accounts below cannot be set up without it.
The County’s Tourist Development Tax and Business Tax Receipt
Once the state license is in hand, Palm Beach County requires a Tourist Development Tax account, set up through the Tax Collector’s portal using the property’s Property Control Number. That generates a nine-digit TDT account, which is required before applying for the short-term rental Business Tax Receipt, priced around $33 for a full year. The receipt cannot be transferred between owners or properties, renews every September 30, and penalties start accruing October 1 if it lapses.
The Real Math: 12.5% in Combined Taxes on Every Stay
Between the Tourist Development Tax, Florida’s state sales tax, and the local school capital outlay surtax, hosts owe roughly 12.5% in combined tax on every stay of six months or less, including mandatory fees like cleaning charges. Airbnb and other platforms generally do not remit this to the county on the host’s behalf, so owners must file returns monthly, even a $0.00 return in a month with no bookings.
Why Your HOA or Condo Documents Can Override All of This
None of the above matters if the property’s association documents say otherwise. Palm Beach County’s ordinance is explicit that it does not override restrictions written into HOA declarations, condo covenants, or lease terms. A six-month minimum lease requirement or a blanket rental ban in the association’s governing documents beats a fully licensed, fully taxed short-term rental every time. Buyers should request and read the HOA or condo docs before assuming a property can be rented on Airbnb, not after closing.
What This Means If You’re Buying to Rent
For a buyer working with our team, that means pulling association rules and any existing rental restrictions during the inspection period, not treating it as a formality. We regularly help clients evaluate short-term rental potential across Palm Beach County alongside more traditional investment options.
Thinking about buying a short-term rental property, or wondering what your current home could sell for to help fund one? The John Diaz Group can walk you through both. Call 844-456-4647 for a free home valuation. Hablamos español.
