Introduction

In Essex County, Massachusetts, short-term rentals (STRs) are regulated at the municipal level, with specific rules varying between towns like Essex and Salem. STRs, commonly referred to as "vacation rentals," are mostly legal but must comply with local regulations, including registration and tax obligations. In Essex, operators are subject to a 3% community impact fee in addition to a 6% local lodging tax for rentals lasting under 31 days. Properties thriving in this market include coastal homes and rural cabins, which attract both leisure travelers and those visiting for events in nearby towns. Salem has stricter regulations, allowing only owner-occupied rentals and requiring annual registration and inspections to obtain a Certificate of Fitness. Salem's market mainly caters to tourists, especially around historic sites and local events, while Essex also sees interest from business travelers due to its proximity to Boston. The Essex Economic Development Committee oversees local STR regulations, while the Salem Health Department manages the requirements in Salem. For more information, visit the official websites of Essex at Essex, MA Official Website and Salem at Salem, MA Official Website.

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Disclaimer

Lodge Compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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