What are the short-term rental rules and taxes in Panama City Beach and Bay County, FL?

Panama City Beach hosts have a state license, a city or county certificate with a fire inspection, and a county tourist tax that, according to the county, no booking platform files for you. Bay County also moved that tax from the Clerk to the Tax Collector on Oct 1, 2026. Everything below comes from Florida DBPR, the Florida Department of Revenue, the City of Panama City Beach, Bay County and the platforms' own pages, linked where it's used.

Checked on Nov 4, 2026.

Do you need a permit or registration

Florida DBPR vacation rental license (statewide)

The Division of Hotels and Restaurants' vacation rental licensing guide (opens in a new tab) says renting an entire unit needs a license if it's rented more than three times in a calendar year for less than 30 days or a calendar month (whichever is less), or if it's advertised as regularly rented to guests. Renting one room in a home doesn't need a DBPR license.

Fees for one unit: $50 application + $10 HEP fee + $170 full-year license ($90 half-year), so a new single-unit license is $230 for a full year. Renewals are the $10 HEP fee plus the license fee. Bay County is in DBPR District 6, which renews June 1, with the half-year fee starting Dec 1. Online applications usually process in one to two business days. Questions go to 850-487-1395.

City of Panama City Beach Vacation Rental Certificate

The city's short-term rental page (opens in a new tab) and its fire inspections page (opens in a new tab) say every vacation rental inside city limits must hold a Vacation Rental Certificate under Ordinance 1632 (passed Sept 28, 2023). Your city Local Business Tax Receipt (BTR) number doubles as the certificate number.

To register, create an account on the city's STR portal and upload:

• A notarized Vacation Rental Registration Affidavit.
• Proof of your DBPR license.
• Proof of Bay County tourist development tax registration.
• A valid Panama City Beach BTR number.
• A pool inspection, if one applies.

After payment the city schedules a fire inspection. You may keep renting while you wait. The certificate renews every year. Fines are $500 for a first offense, $1,000 for a second and $1,000 plus one-year revocation for a third within 12 months. Contact Fire Inspections at 850-233-5100 ext. 2413 or fireinspections@pcbfl.gov.

Unincorporated Bay County Short-Term Vacation Rental Certificate

Bay County's STVR inspections page (opens in a new tab) says Ordinance 23-18 (Aug 1, 2023) requires a county certificate for one- to four-family homes in unincorporated areas. High-rise condos and apartment complexes are exempt. Submit through the county's fire prevention portal:

• Notarized affidavit and fire safety self-inspection checklist.
• Tourist development tax registration and DBPR license.
• A Health Department pool certificate when five or more properties share a pool.
• A DBPR balcony inspection certificate for rentals over two stories.

Fees: $250 initial inspection, $50 re-inspection, $100 lock-out and $150 renewal. Recertify every year and at any change of ownership. Status questions go to 850-248-6040.

Occupancy and sales taxes

Combined, using these official rates: 6% + 1% + 5% = 12%. The pages read show no separate City of Panama City Beach lodging tax. Confirm with the city if your software shows one.

Where the tourist tax applies: DOR's chart (revised Oct 2026) limits Bay's 5% to ZIP codes 32401, 32404, 32405, 32407, 32408, 32410 and the Bay County part of 32413. The Bay County Clerk's tourist tax page (opens in a new tab) describes the district by area instead, including Panama City Beach, Panama City and Mexico Beach city limits and the area south of Panama City Beach Parkway. If you're near a boundary, ask the Tax Collector.

What's taxed: DOR says rentals of six months or less. The Clerk's page says room charges plus required guest fees such as cleaning, pet and resort fees are taxable, and refundable deposits are not. Bay's two surtaxes run to Dec 31, 2030 and Dec 31, 2036.

What Airbnb and Vrbo collect for you there

Airbnb. Airbnb's Florida tax article (opens in a new tab) says it collects the 6% Florida transient rental tax and the county surtax (0.5% to 1.5%) on stays of 182 nights or fewer, including cleaning fees. Its list of counties where it collects tourist development tax does not include Bay.

Vrbo. Vrbo's F to M tax list (opens in a new tab) shows a statewide line for the state transient rentals tax and discretionary county surtax on stays under 184 nights. Its county tourist tax lists don't name Bay, but its county tourist tax line also reads "All Florida counties", which conflicts with Bay County's statement below. Check what your Vrbo tax settings show.

Bay County's position. The Clerk's page says Airbnb, Vrbo and HomeAway do not collect or remit the Bay tax, the county has no agreement with them, and the owner must collect and remit the 5%.

What stays your job:

• The 5% Bay tourist development tax on every booking, platform or direct.
• State tax and surtax on direct bookings, and surtax on any channel that doesn't remit it.
• Your DBPR license, city or county certificate and BTR.

Whether you must still file a state return for platform-remitted bookings is not stated on the DOR brochure read. Ask Florida DOR when you register.

Filing and registering for the taxes you must file yourself

Bay County tourist development tax. The Clerk's notice (opens in a new tab) says administration moved to the Bay County Tax Collector on Oct 1, 2026, and the reporting system stays the same. Tax Collector customer service is 850-248-8555 (BayCountyFLTax.gov/TDT). The Clerk's tax page, written before the move, says:

1. File monthly by the 20th of the following month, even with no income.
2. File and pay on time online to keep a 2.5% collection allowance, capped at $30.
3. Late reports lose the allowance and owe interest and a penalty of at least $50.

Confirm these terms with the Tax Collector, since they were published by the Clerk.

Florida sales tax. DOR's brochure says each rental location must be registered separately. Returns (Form DR-15) are due on the 1st and late after the 20th of the month after each period, and you file even when no tax is due.

This is not tax advice. A Florida CPA can confirm how platform-remitted bookings show on your returns.

Other local rules

From the city's STR page and the county's STVR page:

• Occupancy. Neither sets a fixed number. The fire inspector sets maximum occupancy, and you post it inside.
• Inside posting (city). Near the main entrance or on the fridge: address, responsible party and phone, maximum occupancy, trash days, nearest hospital and a 911 reminder, beach flag information and penalties, Leave No Trace rules, an evacuation map at least 8.5 x 11 inches, and a notice about noise, parking and occupancy ordinances.
• Inside posting (county). Similar, plus the Bay County noise ordinance notice, sea turtle nesting rules and approved parking spaces. Rentals over two stories need an evacuation plan on each bedroom door.
• Outside sign. City homes need a street-visible sign (condos a door or window decal) with the responsible party, a 24/7 number and the certificate number. County signs are no larger than 18 x 12 inches.
• Advertising. The county requires your certificate number on every platform.
• Safety items. The city inspects fire extinguishers (serviced by a Florida-certified company), smoke detectors, exits and electrical. DBPR requires smoke detectors in every unit. Neither page states CO alarm rules. See our alarm count guide.

Our house rules template and emergency info sign help you build the postings.

Where to check for changes

• Panama City Beach short-term rentals (opens in a new tab)
• Bay County STVR inspections (opens in a new tab)
• Bay County Clerk tourist tax notice (opens in a new tab)
• DBPR vacation rental guide (opens in a new tab)
• Airbnb Florida 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 and the tourist tax you remit, use the Airbnb fee calculator.