What are the vacation rental rules and taxes in Palm Springs, California?

Answer9 min readBy HostCalmlyUpdated Nov 5, 2026How we check factsReport an error

Short answer

Every Palm Springs rental of 28 days or less without the owner present needs a city Vacation Rental Registration Certificate. Each owner gets one, and neighborhoods where vacation rentals reach 20% of homes stop taking applications. New certificates allow 26 contracts a year, and certificates from before Oct 17, 2022 keep 32 plus 4 summer stays. Guests pay an 11.5% TOT and a 1% TBID, filed monthly with the city. Airbnb's and Vrbo's tax lists don't name the city, so plan to collect and file it yourself.

The City of Palm Springs, in Riverside County, registers vacation rentals itself and collects its own lodging tax. A vacation rental there is a single-family home rented for 28 consecutive days or less while the owner isn't there. The city limits how many certificates each neighborhood can hold and how many bookings each home can take in a year, so those two numbers matter more than the application form. This page covers what the city and the platforms say.

Checked on Nov 5, 2026. This page reports what the official pages said that day. Confirm with the city before you list. This is not legal or tax advice; for your own situation, ask the city's Department of Special Program Compliance (DSPC), its TOT desk or a CPA.

Do you need a permit or registration

City of Palm Springs

Yes. The city's vacation rentals page (opens in a new tab) says vacation rentals and homeshares are allowed only as "ancillary and secondary uses" of a single-family home, need a registration certificate and are processed online through GovOS. The certificate is "a privilege; not a right." Apartments can't be registered.

The rules sit in Palm Springs Municipal Code Chapter 5.25 (opens in a new tab). The city's vacation rental FAQ (opens in a new tab) sets out the basics:

  • What counts. A vacation rental is a stay of 28 consecutive days or less with the owner away. Stays of 29 days or more aren't regulated. A homeshare is a stay of 28 days or less with the owner present the whole time.
  • One per owner. An owner can hold only one certificate. Spouses and registered partners count as one owner. Certificates issued before Jan 10, 2017 stay valid for the homes owned on that date.
  • Who can own. Corporations can't hold a certificate. Partnerships, LLPs and LLCs qualify only if they are made up of up to four natural persons.
  • No transfers. A buyer applies as a new applicant and can't take bookings until the new certificate is issued.
  • Insurance. At least $500,000 liability per occurrence for the whole certificate term.
  • Inspections. A building, fire and safety inspection every year, with the owner or agent present. A licensed contractor certifies the pool and spa every 5 years and on any change of ownership.
  • HOA letter. If the home is in an HOA, a letter from the board or management company confirming short-term rental doesn't violate the CC&Rs. The renewals page (opens in a new tab) says you need an updated letter at every renewal.
  • Estate homes. Homes with 5 or more bedrooms are estate homes. Certificates cover 5 or 6 bedrooms only, and a one-time Land Use Permit fee applies.
  • Timing. The FAQ says processing takes 30 to 90 days. An older city FAQ (opens in a new tab) says about 90 days for new applications and at least 30 days for renewals. You can't advertise or rent until you have written approval.

Fees. The city's comprehensive fee schedule (opens in a new tab) lists:

CertificateNewRenewal
Vacation rental$1,046$1,046
Junior vacation rental$523$523
Homeshare$261$261

The same schedule lists a $222 transfer fee. The FAQ adds a one-time $25 TOT permit fee. That schedule's cover says it runs from December 2025 through June 2026, and the city's fee schedule page (opens in a new tab) still lists only older schedules. We found no schedule for after June 2026, so confirm the amount with DSPC before you pay.

The neighborhood cap. The city's density page (opens in a new tab) says a neighborhood where vacation rentals reach 20% or more of residential households is capped. Applications there are returned, and you can ask for a place on that neighborhood's waiting list. Section 5.25.050 of the code says spots go to complete applications "first in time, first in right" when the share drops below 20%. The city publishes the share for each neighborhood as an Excel and PDF table and an online map on that page. Check your neighborhood before you buy. Junior certificates don't count toward the cap.

Contract limits per year. Every stay by someone other than you while you're away counts as a contract, paid or not. Ordinance 2118 (opens in a new tab), adopted Nov 12, 2025, sets these limits in Section 5.25.070(b):

CertificateContracts per calendar year
New (complete application after Oct 17, 2022)26
Existing (issued or applied for on or before Oct 17, 2022)32, plus up to 4 more that fall entirely in July to September
Junior certificate6
HomeshareNo limit
  • First-year limits are prorated, per the FAQ.
  • You can name up to five friends or family members who stay free without you present. Their stays don't count toward the limit, but you still file a contract summary before each one. You can change the list only at application or renewal.
  • The pages conflict on existing certificates. Ordinance 2118 removed a cut that would have dropped existing certificates to 26 on Jan 1, 2026. The online code (opens in a new tab) still shows that cut, and the city's FAQs still describe the 32-contract limit as ending Dec 31, 2025. The ordinance is the newest document, but confirm your own limit with DSPC.

Junior certificates. The fee schedule and FAQ describe a junior certificate with a lower fee and a 6-contract limit. The pages we read don't say who qualifies, so ask DSPC.

Renewal. The renewals page lists a renewal form, proof of insurance, the top page of your safety inspection and the HOA letter if you have one. You can update your friends and family list at the same time.

Outside city limits, briefly

The city's rules cover only homes inside Palm Springs. Nearby cities and unincorporated Riverside County are separate jurisdictions, so ask them about their own rules. Airbnb's California tax article (opens in a new tab) lists a 10% TOT for unincorporated Riverside County, which it says doesn't include the incorporated cities. Check which jurisdiction your parcel is in before you apply anywhere.

Occupancy and sales taxes

California has no statewide lodging tax; Airbnb's California article lists only local occupancy taxes. In Palm Springs, two charges apply to rent. Guests pay them, and you collect and remit them to the city.

TaxWho levies itRateStays covered
Transient occupancy tax (TOT)City of Palm Springs11.5%28 days or less
Tourism Business Improvement District (TBID)Collected by the city for the Greater Palm Springs CVB1%27 days or less
Total12.5%
  • TOT. Code Section 3.24.030 (opens in a new tab) sets the tax at 11.5% of rent. Group meeting hotels pay 13.5%. Section 3.24.020 defines a transient as a stay of 28 consecutive days or less.
  • TBID. The city's FAQ says the 1% assessment started on Jul 1, 2021, applies to stays of 27 days or less and is paid with your TOT. The city's TOT and TBID return form (opens in a new tab) shows the same 11.5% and 1%.
  • Exempt stays. The return form says stays over 28 days and federal employees with ID are exempt. You attach a list of guest names, dates and amounts to claim them.

What Airbnb and Vrbo collect for you there

Airbnb. Airbnb's California tax article has no entry for the City of Palm Springs. Its Riverside County entry lists a 10% TOT and a 1% Greater Palm Springs TBID, both on the listing price including cleaning fees, but that entry says it doesn't include incorporated cities. Airbnb's Palm Springs page (opens in a new tab) says the TOT must be reported and paid to the city each month and mentions the 1% TBID. It doesn't say Airbnb collects either one.

Vrbo. Vrbo's US tax list (states A to E) (opens in a new tab) has no entry for the City of Palm Springs. It lists a "Riverside County Greater Palm Springs TBID" for the County of Riverside on stays under 28 nights, starting Oct 1, 2026, with no rate. The list doesn't say whether that entry covers homes inside Palm Springs, so don't assume it does. Ask Vrbo and the city's TOT desk.

What the city says. The city's TOT page (opens in a new tab) says a return is due every month whether your home was rented or not. The city pages we read don't say any platform files Palm Springs TOT for you.

What stays your job:

  • Charge the 12.5% on every booking. Airbnb's custom tax tool (opens in a new tab) lets eligible hosts add a tax to a listing. Vrbo's lodging tax settings (opens in a new tab) can collect it and send it to you. Both say you still file and pay the tax yourself.
  • File and pay the city every month, including months with no bookings.
  • Direct bookings. Charge and remit both the TOT and the TBID yourself.

Filing and registering for the taxes you must file yourself

  • Register. The FAQ lists a one-time $25 TOT permit fee.
  • Portal. The TOT page says online payment moved to GovOS on Jul 1, 2024.
  • Monthly. One return covers both the TOT and the TBID.
  • Zero returns. File one for any month with no rentals. The city's FAQs say zero returns go on a form you email to the TOT desk, not through the online tool.
  • Due date. Code Section 3.24.070 (opens in a new tab) makes the tax delinquent if not received by the last working day of the month after the month it covers. A May return is due by the last working day of June.
  • Late payment. Section 3.24.100 adds the greater of $50 or 10% of the tax, plus interest of 1% a month or part of a month. Fraud adds 100%.
  • Suspension. Code Section 5.25.090 (opens in a new tab) suspends a certificate for 12 months if you fail to remit TOT after written notice.
  • Questions. The TOT desk is (760) 323-8226, Monday to Thursday, 7:30 am to 5:30 pm, or TOTDesk@palmspringsca.gov.

Other local rules

These come from Chapter 5.25 and the city's FAQ.

Occupancy. Two people per bedroom overnight, plus up to two children aged 12 or under:

BedroomsOvernightDaytime
126
248
3610
4812
5 (estate home)1014
6 (estate home)1216

Parking. One car per bedroom at any time, parked legally and not blocking traffic or driveways.

Contract summaries. Enter a summary in the city's online tool before each guest arrives. You don't submit the guest contract itself. A nuisance complaint with no summary on file brings a $2,500 citation and a 6-month suspension.

Meeting guests. The FAQ says guests must be met in person before arrival or within 24 hours of it.

Local contact. A contact must be reachable 24/7. Section 5.25.070(e) requires a phone response within 15 minutes of a hotline complaint, and an in-person response within 30 minutes for further complaints or when the city calls.

Noise. The code sets no quiet hours. Section 5.25.070(g) says any sound-producing device must be used inside the home and must not be audible at the property line. You must tell guests this rule. A noise monitor helps you hear about problems early; follow Airbnb's camera and noise monitor rules. See also how to prevent parties.

Trash. Cans stay out of public view except on pickup day, between 5 am and 8 pm. Walk-up service is required.

Maintenance. No repairs, yard work or pool cleaning from 5 pm Friday to 8 am Monday, except emergencies. Schedule your pool service around it. See pool safety for vacation rentals.

Postings and records.

  • Post the Good Neighbor Brochure inside the front door and the backyard door, and the certificate by the front door.
  • Guests sign the Statement of Rules and Regulations. Keep it, and the posted records, for 4 years.
  • Every ad must show your city ID number. The code also requires the maximum guest count on every ad, including platform listings.
  • The emergency info sign and your house manual can carry the same details for guests.

Enforcement. From Section 5.25.090 and the FAQ:

  • Administrative citations: $500 for a first violation and $1,000 for each one after.
  • A third violation in 12 months suspends the certificate for two years.
  • Operating or advertising without a certificate: $5,000 and permanent ineligibility. A continued violation is $10,000.
  • Advertising without the certificate number, renting without a contract summary or paying TOT late: $2,500 and a 6-month suspension for a first offense, then $5,000 and revocation.
  • Not filing a closure form within 7 days of selling or stopping rentals: $500.

Before the inspection. Check the safety checklist and how many smoke and CO alarms a rental needs before your annual city inspection. The city's safety inspection form is linked from the renewals page.

Where to check for changes

For another desert market, see Joshua Tree's rules and taxes. For other markets, see how to find the rules for your city. For income tax, see short-term rental taxes for US hosts. To see what a stay leaves you after platform fees, use the Airbnb fee calculator.

See your payout

Enter your nightly rate and cleaning fee. See what you keep after Airbnb's fee.

See what a stay pays after fees

Frequently asked questions

Can I get a new vacation rental certificate in Palm Springs?

Only if your neighborhood is under the cap and you don't already hold one. The city stops taking applications where vacation rentals reach 20% of residential households, and each owner can hold one certificate. Check the city's density table first.

How many bookings can a Palm Springs vacation rental take a year?

New certificates allow 26 contracts a calendar year. Certificates issued or applied for by Oct 17, 2022 allow 32, plus up to 4 more in July to September, under Ordinance 2118. Junior certificates allow 6. Up to five named friends or family don't count.

What is the TOT rate in Palm Springs?

Guests pay 12.5%: the city's 11.5% transient occupancy tax plus a 1% TBID assessment. The TOT covers stays of 28 days or less and the TBID stays of 27 days or less.

Does Airbnb collect Palm Springs TOT?

The official pages don't say it does. Airbnb's California tax list has no Palm Springs entry, and its county entry excludes incorporated cities. Plan to collect the tax yourself, and file monthly with the city.

Can I buy a Palm Springs home that's already a vacation rental and keep renting it?

Not straight away. Certificates don't transfer. You apply as a new applicant, the neighborhood cap and one-per-owner rule apply to you, and you can't take bookings until your own certificate is issued.