Vermont Short-Term Rental Rules by Town: Burlington's $120 Registration, Montgomery's $300 Fee, Stowe's Proposed Cap and the 3 Percent State Surcharge

If you plan to rent a house, apartment or room to visitors in Vermont, you have to satisfy two layers of rules. The state taxes the stay and sets a few licensing thresholds. Your town decides whether a short-term rental is allowed at all, how it is registered and what it costs. Vermont does not have a statewide short-term rental registry in force, so the town is where most of the work happens. Vermont short-term rental rules by town differ more than most hosts expect, and they change often.

This guide walks through the steps in order, then compares the rules in several towns. Treat every figure here as a starting point and confirm it with the named agency or town office before you commit money.

What You Need Before You Start

• The street address and parcel details for each unit you plan to rent
• Your deed or lease, plus written permission from the owner if you are not the owner
• A count of bedrooms and the maximum number of guests for each unit
• A Department of Taxes registration, or the information needed to register at tax.vermont.gov/business/register
• The contact information for your town's zoning administrator or clerk
• Your insurance declarations page, since several towns ask for proof of coverage
• A budget that includes town registration fees, the state rooms tax and any local option tax

Step-by-Step: Getting Your Rental Legal

1. Confirm your town allows short-term rentals. Read the town's zoning bylaws, then call the zoning administrator. Towns may regulate short-term rentals as a separate use from residential rentals under 24 V.S.A. 4412(1)(F)(ii), so a unit that works as a long-term rental may not work as a short-term one. Some towns restrict who may host. South Burlington limits short-term rentals to owner-occupied units and accessory dwelling units, and existing rentals are grandfathered to April 2028. Norwich's interim bylaw, which runs to July 2028, requires that the lot be the owner's sole primary residence.
2. Decide whether you are a state tax filer. The state treats a furnished dwelling or unit rented to the transient public for fewer than 30 consecutive days, and for more than 14 days a year, as a short-term rental. If you rent only through booking platforms, the platform generally registers, collects and remits the tax, and you may not need to register yourself. If you rent directly, or rent both directly and through platforms, you register with the Department of Taxes. Registration is free, and you file Form MRT-441.
3. Check whether you need a lodging license. The Vermont Department of Health generally requires a lodging license for properties with 3 or more guest rooms or units, or where food is prepared on site. A rental of 2 or fewer units without food service generally does not need one. Not every Airbnb needs a lodging license, so confirm with the Health Department before you assume either way.
4. Register with the town and pay the fee. Many towns now run a registry with an initial fee, a renewal fee or both. Ask whether the fee is charged per unit or per bedroom, and whether it renews on a fixed calendar date. Killington, for example, sets its fees by bedroom count.
5. Set up your business entity, if you need one. Vermont has no general business license. If you form an LLC, you file Articles of Organization with the Secretary of State's Business Services Division. The filing fee is $155. Online filings are normally processed in less than 1 business day, while mailed filings take 7 to 10 business days. Every Vermont LLC must maintain a registered agent, either an individual resident of Vermont or a business organization with a place of business in Vermont. The LLC annual report costs $45 and is due by March 31 for a calendar-year LLC. Pass-through entities, including LLCs taxed as partnerships, owe a $250 minimum annual entity tax, paid with Form BI-471 or BI-476. That tax does not apply to a disregarded single-member LLC.
6. Collect and remit the rooms tax correctly. Short-term rentals owe the 9% rooms tax, plus a 3% surcharge on rents collected on or after August 1, 2024 under Act 183 of 2024, plus any 1% local option tax your town has adopted. The surcharge is added on top of the 9% rooms tax. It does not replace it. Hotels licensed under 18 V.S.A. chapter 85 are exempt from the surcharge.
7. Report the income on your Vermont personal return. Rental income goes on your Vermont personal income tax return. Vermont's personal income tax has four brackets, from 3.35% to 8.75% for tax year 2025. Keep nightly rate, night count and tax records for every stay.
8. Meet the conditions your town attaches. These often include a local agent, off-street parking, fire inspection for larger groups, trash rules and a designated operator. Build these into your checklist before you accept the first booking.

Town-by-Town Comparison

The table below lists what is on record for each town as of 2026. Rules change often, so confirm each figure with the town before you rely on it.

Town	Type of rule	Fee on record	Confirm with
Burlington	Registration under Ordinance 6.6, adopted April 27, 2026 and effective May 26, 2026	$120 per unit per year. Owner-occupied dwellings of two or fewer units and partial-unit rentals pay $80. Whole-unit short-term rentals add $120, for $240 total. The city also levies a 9% gross receipts tax on short-term rentals.	Burlington housing division
Killington	Registration through the Zoning Administrator, one per unit, running November 1 to October 31 and renewed by November 15, with no proration	Set by bedroom count. The schedule on the town page covers 2023 to 2024.	Town of Killington
Stowe	New rules adopted by a 5 to 0 Selectboard vote in July 2026, with an aspirational cap of 850	Not stated in published coverage	Stowe Town Clerk
Montgomery	Registry ordinance (town FAQ dated November 15, 2025). A local agent is required if the owner lives more than 25 miles away.	$300 initial and $250 renewal per dwelling unit. Fines range from $200 to $800.	Montgomery town office
Dover	Registry ordinance, plus a one-hour response requirement and a bear-proof trash rule	$125 annual fee, per the town's registration page	Town of Dover
Norwich	Interim bylaw through July 2028. The lot must be the owner's sole primary residence, and the permit expires December 31.	$250 application fee	Town of Norwich
North Bennington (village)	Ordinance adopted November 2025	$100 annual fee	Village office
Warren	Registry ordinance adopted September 17, 2025	Not confirmed here	Town of Warren
South Burlington	Rental registry since April 2024. Short-term rentals limited to owner-occupied units and accessory dwelling units.	Not confirmed here	City of South Burlington

Burlington

Burlington's ordinance is the most recent major change on this list. Its 2022 FAQ described an April 1 annual registration and a rule requiring the host to be on site. Those details may no longer apply after the 2026 ordinance, so ask the Burlington housing division which deadlines and host requirements are current.

Stowe

Stowe's Selectboard voted 5 to 0 in July 2026 for new rules with an aspirational cap of 850 short-term rentals. The town counted about 1,450 rentals, and about 600 of them are commercial or inactive. Non-resident owners were required to register by September 15, 2026, and that date has passed. Non-residents who register later enter a lottery, which operates only once the count drops below 850. Homestead owners may hold at most two licenses. The cap is aspirational, not a hard limit, and the fee is not stated in published coverage, so confirm it with the Stowe Town Clerk.

Montgomery

Montgomery's registry is one of the most expensive on the list. The $300 initial fee and $250 renewal apply to each dwelling unit, so a host with three units faces $900 in initial fees. If you live more than 25 miles from the property, you need a local agent.

Activity levels also vary. In December 2025, active rentals in Bennington County totaled 228 in Manchester, 201 in Winhall, 92 in Peru, 84 in Bennington, 69 in Dorset, 65 in Arlington and 26 in Pownal. Towns with high counts are the ones most likely to tighten their rules.

Expected Results

If you complete these steps in order, you may end up with a rental that is documented, registered and easier to defend if a neighbor, zoning officer or auditor asks questions. Hosts who check the town rules before buying or listing a property could avoid the cost of converting a unit later. Results depend on your town, your property and how quickly the rules change, so these outcomes are possible rather than guaranteed.

Common Mistakes to Avoid

• Treating state tax registration as town permission. Vermont has no statewide registry in force, and the town decides whether your unit can be rented short term.
• Treating the 3% surcharge as a replacement for the 9% rooms tax. The surcharge is added to the 9% tax.
• Using old fee schedules. Killington's 2023 to 2024 schedule and Burlington's 2022 FAQ may be out of date.
• Assuming the platform handles everything. If you also rent directly, you still register and file Form MRT-441.
• Missing a registration window. Stowe's September 15, 2026 deadline has passed, and late non-resident owners now face a lottery.
• Forgetting the entity tax. A multi-member LLC owes the $250 minimum entity tax even if it has little income.

Tips for Staying Compliant

• Call the zoning administrator before you buy or list a property.
• Keep a log of nights rented so you can tell whether you pass the more than 14 days and fewer than 30 consecutive days thresholds.
• Ask whether a town rule is grandfathered before you assume your existing rental is protected.
• Calendar every renewal date, especially the November 15 Killington deadline and the annual Vermont LLC report due March 31.

Where to Confirm Current Requirements

• Vermont Secretary of State, Business Services Division: sos.vermont.gov/business-services
• Business search: bizfilings.vermont.gov/business/businesssearch
• Online Business Service Center: bizfilings.vermont.gov/homepage
• Vermont Department of Taxes: tax.vermont.gov
• Vermont Small Business Development Center, free advising: vtsbdc.org

Disclaimer

This article is informational only. It is not legal, tax or financial advice. Rules change often, so confirm current requirements with the named agency or town office. If your situation is complex, such as several properties, a multi-member LLC or a unit in a town with a pending cap, talk with a qualified attorney or CPA before you act.