Guide · Cost to run
What it costs to run a Denver short-term rental.
The license is cheap. The cost in Denver is the rule behind it: only your primary residence qualifies, so the price question is whether you can license the property at all.
The short answer
Four numbers to know
| License | $50 application plus $100 a year The license renews every year. The license number must appear in every listing. |
|---|---|
| Taxes | 14.75% of the stay 10.75% Denver lodger's tax plus 4% state and special-district sales tax. |
| Insurance | $1 million liability coverage Proof is part of the application, along with HOA affidavits where they apply. |
| Fines | Up to $999 per incident Enforcement is complaint-driven plus proactive inspections, and booking platforms must block unlicensed listings. |
Fixed cost
What the license costs
The columns show how many booked nights, at an example nightly rate before tax, cover each amount (examples, not forecasts).
| Item | Amount | Nights at $150 | Nights at $250 | Nights at $400 |
|---|---|---|---|---|
| Application fee | $50 | 0.3 | 0.2 | 0.1 |
| Annual license fee | $100 | 0.7 | 0.4 | 0.3 |
| First year, both | $150 | 1.0 | 0.6 | 0.4 |
Source: Denver Department of Licensing and Consumer Protection, short-term rental FAQ, and Denver Revised Municipal Code Chapter 33, read October 7, 2026. Not included: a Denver business license, lodger's tax account setup, insurance premiums and HOA paperwork.
Guest-paid, but it shapes your price
The tax stack on a stay
An illustration: 3 nights at $300 is a $900 rental price. At the combined rate, tax comes to about $132.75.
| Tax | Rate | On the $900 example |
|---|---|---|
| Denver lodger's tax | 10.75% | $96.75 |
| State and special-district sales tax (state, RTD, cultural) | 4.0% | $36.00 |
| Total | 14.75% | $132.75 |
This is a simplified illustration on the base rental price. Denver's lodger's tax applies to the total price charged, including mandatory fees, for stays under 30 days, and is remitted to Denver Treasury. Denver's own tax guides for short-term rentals set out what is taxable, so read them before you price.
The real constraint
Whether you can get a license
| Primary residence | Required The unit must be the license holder's primary residence, checked on several factors. Second homes and investment properties cannot be licensed. |
|---|---|
| ADUs | Allowed if you live in the main house Only one rental contract can run at a time. |
| Local contact | A local responsible party Plus a business license, a lodger's tax ID, insurance and HOA affidavits with the application. |
Full sourced rules, with evidence for each line, are on the Denver market page. For a mountain-town contrast, see Denver vs Breckenridge.
Stay current
Get Denver rule changes
No spam. Unsubscribe anytime. See our privacy policy.