What are the short-term rental rules and taxes in Gulf Shores and Orange Beach, AL?

Alabama's beach towns run on one tax that does most of the work: a lodging tax stacked from the state, Baldwin County and the city. Each city also wants its own business license from the owner, even when a management company runs the rental. Everything below comes from the City of Gulf Shores, the City of Orange Beach, the Alabama Department of Revenue and the platforms' own pages, linked where it's used.

Checked on Nov 4, 2026.

Do you need a permit or registration

There's no separate state STR license in Alabama on the pages read. The permit layer is the city business license.

Gulf Shores

The city's rental license page (opens in a new tab) says every owner renting property in the corporate limits or the police jurisdiction must apply for a business license.

• Fee. Based on gross receipts under the city's Fee Schedule A, plus a $45 rental fee for short-term rentals.
• Renewal. Licenses expire Dec 31. Renewals are due Jan 1 and are delinquent after Jan 31.
• Review. Revenue checks the paperwork, Planning and Zoning checks zoning, and the Fire Marshal inspects if applicable.
• Local contact. You must name and keep a local emergency contact (Code Section 8-41).
• Documents. A copy of your driver's license and everything on the rental license checklist (opens in a new tab). Submit in person, by mail to P.O. Box 4089, Gulf Shores, AL 36547, or by email to revenuedivision@gulfshoresal.gov.

Safety inspection. The rental license page and the checklist say a safety inspection is required every 3 years. The city's rental safety ordinance (opens in a new tab) (No. 2168, adopted July 28, 2025) treats an inspection report as current if dated within five years before the license year. The two pages don't match, so ask the Building Department (251-968-1142) which cycle applies. The ordinance sets a $500 fine before license renewal for a unit out of compliance, and a hazard can bring a suspension order that stops rentals until it's fixed.

Orange Beach

The city's Finance FAQ (opens in a new tab) says a license is required to rent a condo or house, and it's the owner's responsibility, not the management company's.

• Licenses expire Dec 31, and you have until Jan 31 to renew without penalty.
• Apply and renew through the city's OpenGov portal (opens in a new tab).
• License payments aren't taken online. Card payments by phone carry a 2.95% convenience fee.
• The pages read don't list license fee amounts. Call Finance at 251-981-6096.

The city's new business guide (opens in a new tab) (2023) says to allow 7 to 10 working days for review and to get the license before you open to avoid penalties.

Zoning. None of the Orange Beach pages read says where short-term rentals are allowed or banned. Ask the city's planning office before buying a single-family home to rent.

Occupancy and sales taxes

Lodging tax

Combined, using these official rates:

• Gulf Shores city limits: 4% + 2% + 10% = 16%. Police jurisdiction 4% + 2% + 5% = 11%. Both totals and parts are on the city's lodging tax page (opens in a new tab).
• Orange Beach city limits: 4% + 2% + 10% = 16%, per the city's tax page (opens in a new tab) (for transactions on or after Sept 1, 2023). The new business guide says the city rate in the police jurisdiction is half the normal city rate, which makes 4% + 2% + 5% = 11%. That 11% is our sum. Orange Beach doesn't print it, so confirm it with the city.

Notes on the parts:

• The Alabama Department of Revenue (opens in a new tab) sets the state rate at 5% in 16 named Alabama Mountain Lakes counties and 4% everywhere else. Baldwin isn't one of the 16.
• ADOR's Gulf Shores notice (opens in a new tab) shows the city rate rising from 9% to 10% on Sept 1, 2023, with the police jurisdiction at half.
• Gulf Shores taxes rent plus parking and cleaning fees. Orange Beach taxes rent, cleaning fees and parking passes.
• ADOR excludes stays of 180 continuous days or more.

Sales tax is not shown on the lodging pages read. Whether any sales or rental tax applies to separate charges is not stated. Confirm with ADOR (334-242-1490).

What Airbnb and Vrbo collect for you there

Airbnb. Airbnb's Alabama tax article (opens in a new tab) says that effective Sept 15, 2026 it collects the Alabama state lodging tax (4% to 5%) and county and municipal lodging taxes collected by the state, on the listing price including cleaning and guest fees, for stays of 179 nights or fewer. It names Gulf Shores and Orange Beach each at 10% (5% in the police jurisdiction). It does not name Baldwin County separately.

Vrbo. Vrbo's A to E tax list (opens in a new tab) shows one Alabama entry, state lodging tax and state-administered local tax, for stays under 180 nights, starting Jan 1, 2025. It doesn't name Baldwin County, Gulf Shores or Orange Beach, or give rates. Check your Vrbo tax settings to see which lines it collects.

What stays your job:

• All three lodging taxes on direct bookings and any channel that doesn't collect them.
• Your city business license and, in Gulf Shores, the rental fee and inspection.
• If you use a management company, Gulf Shores says to make sure it collects and remits for you, and that you take over when you leave its program.

Whether you must still file returns for months with only Airbnb bookings is not stated on the pages read. Ask ADOR and the city.

Filing and registering for the taxes you must file yourself

Both cities send you to My Alabama Taxes (MAT) at myalabamataxes.alabama.gov (opens in a new tab). The Gulf Shores checklist says self-remitters register in MAT for lodging and local tax account numbers, then add Gulf Shores to the local tax account.

1. Register in MAT for the state lodgings tax and a local tax account, and add your city.
2. File monthly. Returns are due by the 20th of the following month, even with no income (Gulf Shores) or for revenue earned the month before (Orange Beach, May revenue due June 20).
3. Smaller filers. ADOR's lodgings tax FAQ (opens in a new tab) allows quarterly filing under $2,400 of prior-year state tax, twice-yearly under $1,200 and annual under $600. Request changes before Feb 20.
4. Discount. Paying state tax by the 20th earns 5% of the first $100 of tax and 2% of the rest. ADOR says local discounts match.
5. Late. Gulf Shores says late filing brings a penalty plus interest. The rate is not stated on the city page.

Contacts: Gulf Shores 251-968-2425, Orange Beach city taxes 251-981-6782, MAT help 251-344-4737.

This is not tax advice. An Alabama CPA can confirm your filing schedule.

Other local rules

• Gulf Shores inspection items. For houses and duplexes, the safety ordinance lists smoke detectors, fire extinguishers, stairs, emergency rescue openings, electrical, balconies and decks, pools, foundations and 911 addressing. It doesn't state CO alarm rules or extinguisher sizes. See our alarm count guide.
• Hurricane re-entry (Orange Beach). The FAQ says when a renter is present, one re-entry decal goes to the renter and one to the owner, and decals aren't issued once a named storm is in the Gulf.
• Occupancy, parking, noise. None of the city pages read sets STR occupancy caps, parking rules or noise hours. Ask each city's planning office and your HOA or condo association.

Our house rules template and emergency info sign help you post what you confirm.

Where to check for changes

• Gulf Shores rental license (opens in a new tab)
• Gulf Shores lodging tax (opens in a new tab)
• Orange Beach taxes (opens in a new tab)
• ADOR lodgings tax (opens in a new tab)
• Airbnb Alabama taxes (opens in a new tab)

For other markets, see short-term rental rules by city and the already hosting hub. To see what a booking leaves after fees, use the Airbnb fee calculator.