Delaware has no statewide short-term rental license; towns, especially the beach towns, set the permit and zoning rules. Since January 1, 2025, short-term rentals owe a 4.5% state lodging tax.

Delaware Division of Revenue

In Delaware, there isn't a statewide definition for short-term rentals. Instead, the definition and regulation of short-term rentals are left to individual municipalities. This means that different towns and cities in Delaware may have their own specific definitions and regulations concerning short-term rentals. For example, in Rehoboth Beach, short-term rentals are defined as lodging offered for periods of less than 30 consecutive days. Other towns may use similar or different criteria to define short-term rentals.

This decentralized approach to regulation means that the rules can vary significantly from one location to another within Delaware. For instance, some towns might restrict short-term rentals through zoning laws, require specific permits or licenses, or impose certain tax obligations on hosts. In Dover, there are strict regulations on short-term rentals, including a limit on the total number of days per calendar year a property can be rented and requirements for the property owners to be permanent residents and present in the home when not renting it out.

The definition and regulation of short-term rentals (STRs) vary by location, as there is no statewide standard. Many towns, especially beach towns, define STRs as lodging offered for periods of less than 30 days.

Since January 1, 2025, Delaware charges a 4.5% lodging tax on short-term rentals. Hotels, motels and tourist homes pay the separate 8% accommodations tax. Airbnb and Vrbo collect the state lodging tax on bookings made through them; you file for direct bookings. Some towns add local taxes.