What are the short-term rental rules and taxes in the Poconos (Monroe County, PA)?

In the Poconos, three levels of government touch a short-term rental. Pennsylvania charges hotel occupancy tax, Monroe County charges its own hotel room rental tax, and each township or borough decides whether you need a rental permit and what the operating rules are. This page covers the state and county taxes for all of Monroe County, and the rental rules in Pocono Township (Tannersville area) in detail, with a short note on Tobyhanna Township.

Checked on Nov 4, 2026. Township rules differ a lot, so check yours. This is not legal or tax advice; confirm with your township, the Monroe County Treasurer or a CPA.

Do you need a permit or registration

Your township or borough

In Monroe County, rental permits are local. Ask your municipality's zoning office first. The two townships below both require one.

Pocono Township

Yes. The township's Transient Dwelling Use of Single-Family Dwellings Ordinance (opens in a new tab), adopted Sep 16, 2019 (Ord. 2019-07) and amended Mar 15, 2021 (Ord. 2021-02), requires a transient dwelling unit (TDU) license before you rent. Key points:

• Where it applies. The chapter says it applies only within the Commercial and Recreational zoning districts. The township's zoning and building codes page (opens in a new tab) lists a Change of Use to TDU application and a TDU permit application for this use. Ask the zoning office whether your parcel qualifies before you list.
• License. One per unit, in the owner's name, not transferable. A sale needs a new application.
• License year. Nov 1 to Oct 31, renewed every year. Renewal requires that all hotel and sales taxes owed are paid.
• Fee. Set in the township fee schedule and paid at application. The township's posted fee schedule PDF couldn't be read, so confirm the current fee at 570-629-1922.
• Review. The township has 15 business days after a complete application to inspect and act.

The township's 2025 TDU application (opens in a new tab) asks for:

• A copy of your deed
• Septic details, a professional septic evaluation and proof of pumping within 12 months (if on private septic)
• Your current Monroe County Hotel Room Excise Tax Certificate
• Your current Pennsylvania Sales and Use Tax Permit
• A signed trespass waiver allowing inspections
• Proof of $500,000 general liability insurance per occurrence. See short-term rental insurance basics.

Tobyhanna Township, briefly

Tobyhanna Township (offices in Pocono Pines) also requires a permit for each unit. Its STR page (opens in a new tab) says the ordinance passed Jun 28, 2022, was amended Oct 3, 2022 and is being enforced. You apply through the township's online portal. The code chapter (opens in a new tab) requires $500,000 in liability insurance, a septic evaluation if you're not on central sewer and your permit number in each listing's permit field. A 2022 township FAQ lists fees, occupancy and minimum stays, but a later amendment draft changes some of them, so confirm current numbers at 570-646-1212.

Occupancy and sales taxes

State. The Pennsylvania Department of Revenue's home-sharing page (opens in a new tab) sets the hotel occupancy tax at 6% on rooms, apartments and houses rented for less than 30 days to the same person, including rentals booked through online brokers.

County. The Monroe County Treasurer's hotel tax page (opens in a new tab) sets 3% on every rental of a room with a bed, and its definition of "hotel" includes guesthouses, homesteads and any cabin. The county's rules and regulations (opens in a new tab) apply the tax to stays under 30 days.

None of the official pages we read show a township lodging tax in Monroe County.

What Airbnb and Vrbo collect for you there

Airbnb. Airbnb's Pennsylvania tax article (opens in a new tab) lists:

• Pennsylvania Hotel Occupancy Tax at 6% of the listing price including cleaning and guest fees, for 29 nights and shorter.
• "Locally administered occupancy taxes" that vary by city and county, typically 0% to 8.5%.

It doesn't name Monroe County. Before you assume Airbnb pays the county's 3%, check the tax lines on your Airbnb transaction history and ask the Treasurer.

Vrbo. Vrbo's US tax list (states N to Z) (opens in a new tab) shows it collects:

• Pennsylvania State Hotel Occupancy Tax for stays under 30 nights, since Feb 1, 2019
• The County Hotel Room Rental Tax for a group of counties that includes Monroe, since Apr 1, 2019

It lists no rates and notes that exemptions vary by locality.

What stays your job:

• Direct bookings. Collect and remit both the 6% state tax and the 3% county tax.
• County returns. The county's registration form asks whether you list on Airbnb or Vrbo. The quarterly form doesn't say platform bookings are exempt from reporting, so file every quarter and ask the Treasurer how to report platform-paid stays.
• Township renewals. Pocono Township won't renew a TDU license unless your hotel and sales taxes are paid.

Filing and registering for what you file yourself

Monroe County hotel tax. From the county's rules and forms:

• Register with the county's hotel tax registration form (opens in a new tab). The rules give no deadline, but Pocono Township and Tobyhanna both ask for the county certificate before they issue a permit.
• File the quarterly report (opens in a new tab) on or before the 25th day of the month after each calendar quarter.
• If no tax is due, file anyway, marked "NO TAX DUE."
• Late payments carry 1.5% interest a month.
• Keep records at the business location.

Pennsylvania hotel occupancy tax. The Department of Revenue says:

• If you book only through a site that confirms it collects and remits the tax, you should not register for a license.
• Otherwise, register for a Sales, Use and Hotel Occupancy Tax License through myPATH and file and pay there.

A conflict to sort out. Pocono Township's application asks for a current Pennsylvania Sales and Use Tax Permit, and Tobyhanna posts a PA sales tax self-declaration form. If you're platform-only and have no state license, ask your township what to submit instead.

Other local rules

These are from Pocono Township's ordinance. Other townships differ.

Occupancy. Overnight, two people per bedroom plus four, up to 14, whichever is less. Daytime guests at any one time can't exceed 75% of the overnight maximum.

Bedrooms and septic. Bedrooms can't exceed the number on the sewage permit. With no permit on record, the limit is three unless the sewage enforcement officer confirms the system can take more. A septic failure stops rentals until it's fixed.

Parking and outdoor use. No parking on the street or in the yard. No tents, RVs, campers or buses on the property, and no sleeping outdoors overnight.

Local contact. You live there, or a designated person in charge lives or has an office within 15 miles. That person must respond to the code official within one hour of being notified of a violation or disturbance. Tell the township in writing within 14 days if ownership or the contact changes.

Noise and trash. You're responsible for guests' noise. Failing to stop a disturbance brings a notice of violation. The ordinance sets no quiet hours. You must provide adequate trash storage and weekly pickup.

Other limits:

• The guest who signs the rental agreement must be at least 21.
• No subleasing.
• No fireworks or floating lanterns.
• The home can't look visibly different from the surrounding houses.
• A public notice placard stays posted on the front door at all times.
• Ads can't show more occupancy than your license allows.

Penalties. $500 to $1,000 per violation plus court costs and attorney's fees, and each day counts separately. Correction deadlines are no more than seven days. Two uncured or repeated violations mean a one-year revocation or denied renewal.

Safety items. Pocono Township's ordinance doesn't list them. Tobyhanna's code asks for smoke detectors in and outside each bedroom and on each floor, a CO detector with fuel-burning heat or an attached garage, and a kitchen extinguisher. For counts, see how many smoke and CO alarms a rental needs.

Where to check for changes

• Pocono Township TDU ordinance (opens in a new tab) and zoning and building codes page (opens in a new tab)
• Tobyhanna Township STR page (opens in a new tab)
• Monroe County hotel tax page (opens in a new tab)
• Pennsylvania Department of Revenue, home-sharing (opens in a new tab)
• Airbnb Pennsylvania taxes (opens in a new tab) and Vrbo tax list (opens in a new tab)

For other markets, see how to find the rules for your city. For income tax, see short-term rental taxes for US hosts. More guides for running a rental are at /hosting/.