Short-term rental rules · Annapolis, Maryland
Short-term rentals in Annapolis, explained properly.
This page covers the City of Annapolis, Maryland (city limits, Anne Arundel County). Every short-term rental (stays of up to 90 consecutive days) needs an annual City short-term rental license ($650 owner-occupied, $750 not owner-occupied), held by the owner, who must live in the City or use a City-based property manager; each owner may hold only one. A moratorium bars new licenses for homes that are not owner-occupied until about March 9, 2027, and non-owner-occupied licenses are capped at 10% of homes on each blockface, with a lottery from November 1, 2027. Anne Arundel County charges an 8% occupancy tax, and Maryland's 6% sales tax and statewide safety rules also apply (see state law below).
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are short-term rentals allowed? | Yes, with a City short-term rental license, but no new licenses are being issued for homes that are not owner-occupied until about March 9, 2027 (moratorium), and non-owner-occupied licenses are capped at 10% of homes on each blockface. The Zoning Code does not list short-term rentals as a use; check with Planning and Zoning for your property[1][2][3]ClauseClauseClauseClauseClause |
| Moratorium on new licenses | Yes, in effect: Ordinance O-40-25 (adopted March 9, 2026, effective on passage) bars new short-term rental licenses for 12 months, so until about March 9, 2027. It does not apply to renewals of existing licenses in full compliance or to owner-occupied homes (owner lives there more than 50% of the year, with proof). Applications filed but not approved before March 9, 2026 are not processed during the moratorium[2]ClauseClauseClauseClauseClauseClauseClauseClause |
| Cap on non-owner-occupied rentals (blockface cap) | Yes: on each blockface (one side of a street between two intersecting streets or features), non-owner-occupied short-term rental licenses may not exceed 10% of the residential units, and a blockface with fewer than ten units may have at most one. Owner-occupied rentals are exempt. Existing over-cap licenses may renew until November 1, 2027; after that, licenses on over-cap blockfaces are allocated by lottery[1][3]ClauseClauseClauseClauseClauseClauseClauseClause |
| Who can hold a license? Must the owner live there? | The property owner must hold the license and must either live in the City or use a property manager who lives or has a primary office in the City. Each licensee (counting all entities the person has an interest in) may hold only one short-term rental license, for one dwelling unit. The Code does not require the owner to live in the home, but owner-occupied homes are exempt from the moratorium and the blockface cap[1][4]ClauseClauseClauseClauseClauseClause |
| License fee and term | $650 a year for an owner-occupied short-term rental license and $750 a year for a non-owner-occupied one; licenses are renewed annually[5]Clause |
| Anne Arundel County occupancy (hotel) tax | 8% Anne Arundel County occupancy tax on the rent (since July 1, 2023), reported and paid monthly through the City's Citizen Self-Service portal; Maryland's 6% sales and use tax also applies (see state law below). No combined total is shown[6][5][1]ClauseClauseClauseClauseClauseClause |
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Detailed rules
The full picture, section by section
Licensing, operations and enforcement
| Applying for a license | Apply online through the City's Citizen Self-Service portal. The application names the owner, any property manager, any condominium or homeowners association, and every hosting platform and host alias; a license cannot be issued unless the association's rules allow it. The City inspects all rooms before issuing the license[6][1][5]ClauseClauseClauseClause Section 17.44.090(B) lists what the application must include: the owner's name, residential address, phone numbers and email as listed with SDAT; the property manager's details (changes reported within five calendar days); association consent if its rules require it; and a list of the platforms to be used with an attestation of all host aliases, the matching legal names and contact information. Under 17.44.090(F) the licensee must make sure the whole premises meets building, residential maintenance, electrical and plumbing codes and smoke detector, carbon monoxide detector and lead-paint rules, and the Department inspects all rooms and units before issuing the license. The Rental Licensing Procedures page says all rentals are inspected once each year. |
|---|---|
| License number in listings; no signs | The license number must appear conspicuously in every written and electronic ad and listing, including on hosting platforms; no sign on the property may advertise it as a short-term rental unless the Director approves[1]ClauseClause Section 17.44.090(B)(3)(d)(iii) and (C)(3). |
| Operating rules | At least one guest over 21 must be present for the whole stay; no rental of more than 90 days to a single tenant; overnight occupancy follows the City's residential property maintenance code (Chapter 17.40); keep records of all guests' names, addresses and phone numbers; licenses cannot be transferred[1]ClauseClauseClauseClause Section 17.44.090(C)(6)-(9). Short-term rental licenses are not issued for bed and breakfast homes, hotels, motels or inns (17.44.090(C)(5)). |
| Naval Academy graduation and boat shows | A short-term rental license is not required for homes rented only during the Naval Academy graduation ceremonies, the spring and fall sailboat and powerboat shows, or other events named by Council resolution; the City asks these hosts to file a free short-term rental registration in its portal for tax purposes[1][6]ClauseClauseClause Section 17.44.090(G)(2) exempts these rentals from the license, and 17.44.090(D)(1)(c) exempts rentals during the boat shows and Commission Week from the blockface limits. The City's Short Term Rental Portal page says hosts renting only during the boat shows or Navy graduation apply for a free short-term rental registration; the Rental Licensing Procedures page describes it as a license with no fee. |
| Denial, suspension and revocation | A license must meet every requirement throughout its term or it is denied or revoked; a property with three verified nuisance violations is denied a license or may have it revoked, and the City notifies platforms when a license is suspended or revoked[1]ClauseClauseClause Section 17.44.090(H)(1)-(2). Other grounds include a material adverse effect on public health, safety and welfare, excessive noise or traffic or unruly behavior tied to the rental, and fraud or false statements in the application. A nuisance includes a code violation that significantly affects neighbors or harms their health, safety or welfare, a City tax violation tied to the property, and three or more police or other law-enforcement responses to complaints or calls within 180 days (17.44.110). The owner or property manager must have been notified of each nuisance complaint, and the Director of Planning and Zoning decides which complaints are valid. |
| Penalties | Renting without a license is a municipal infraction, fined per unit per day after a 15-day notice period; breaking the short-term rental rules also brings fines set each year by City Council resolution, besides denial or revocation[1]ClauseClause Section 17.44.010(B) and 17.44.090(H)(3). The fine amounts are set by resolution; this page does not show them. |
State law that also applies
| Maryland state sales tax on short-term rentals | 6% Maryland sales and use tax: the Tax-General Article counts a short-term rental (the temporary use of a home or part of one to lodge transient guests for pay) as taxable tangible personal property, taxed at 6 cents on each dollar[7][8][9]ClauseClauseClauseClauseClause Section 11-101 of the Tax-General Article defines a short-term rental as the temporary use of a short-term rental unit (a residential dwelling unit or part of one, including a house, apartment, condominium or cooperative) to provide accommodation to transient guests for lodging purposes in exchange for consideration, and lists both an accommodation (a right to occupy a room or lodgings as a transient guest) and a short-term rental as tangible personal property. Section 11-104(a) sets the general sales and use tax rate at 6 cents for each exact dollar of the taxable price. The Comptroller of Maryland's 2016 tax alert on accommodations says that individuals who rent out their homes or rooms are accommodations providers who must register with the Comptroller and collect the tax, that the tax does not apply to monthly or permanent residents, and that all rentals in resort areas for terms of 4 months or less are subject to the tax. Local room or hotel taxes are shown on each place's page. |
|---|---|
| Do booking platforms collect the state sales tax? | Yes: Maryland law makes a short-term rental platform a vendor, counts bookings made through it as sales, and requires vendors to collect the sales and use tax from the guest; tax is due on the full amount the guest pays, not counting other taxes remitted[7][10][9]ClauseClauseClauseClauseClause Section 11-101 defines a short-term rental platform as an Internet-based digital entity that advertises short-term rental units and is paid for facilitating reservations or processing booking transactions for the owner, operator or manager, and lists a short-term rental platform as a vendor. Section 11-403(a)(5) says sales include a booking transaction made through a short-term rental platform, and 11-403(b) requires a vendor to collect the sales and use tax from the buyer. Under 11-101(l)(5), when a platform facilitates a stay, the taxable price is the full amount the guest pays, not counting any tax remitted to a taxing authority; a commission paid by the host after the booking is not included. The Comptroller's 2016 alert says hosting platforms that collect payments on behalf of an owner must register and collect the tax, and that an owner's duty to collect is waived only when the platform gives the owner a resale certificate. A 2025 law (Chapter 638) rewrites these definitions from July 1, 2027 so that an accommodations intermediary includes a short-term rental platform. The sources read do not say whether a host who books through a platform that collects must still file returns; check with the Comptroller. |
| Statewide short-term rental law? | Yes, a statewide safety law (in effect since October 1, 2026): hosts of rentals offered for less than 30 consecutive days must post an evacuation diagram and emergency numbers and provide a working fire extinguisher, smoke alarms and carbon monoxide alarms; booking services must tell hosts about these rules. There is no statewide short-term rental license, ban or cap, and the law does not limit local rules[11][12]ClauseClauseClauseClauseClauseClauseClause Chapter 9 of the 2026 Laws of Maryland (House Bill 1221) added Public Safety Article sections 9-1101 to 9-1106, effective October 1, 2026. They apply only to a short-term rental unit offered for less than 30 consecutive days. The host must conspicuously post an evacuation diagram identifying all exits and a list of emergency numbers for police and fire rescue, and provide a working fire extinguisher and working smoke and carbon monoxide alarms. Booking services must electronically notify hosts of these requirements and require each host to provide the inspection confirmation for each unit. By July 1, 2028, each county and Baltimore City must, by local law or regulation, require annual inspections of all short-term rental units for these requirements (this does not apply to a county that prohibits short-term rentals) and may charge an inspection fee. The law does not require a county or Baltimore City to allow short-term rentals and does not preempt other local measures. In the 2026 session, House Bill 993 (local rules on short-term rentals run by tenants) passed the House; its last action shown, on April 13, 2026, was Second Reading Passed in the Senate, and it has no chapter number. |
Changes
Recent and pending changes
We read the Annapolis City Code on Municode (Supplement 2025 Update 3, codified through Ordinance O-16-26 and Resolution R-29-26, passed July 27, 2026): Chapter 17.44 (rental unit licenses, including 17.44.090 short-term rentals and 17.44.110 definitions), the Zoning Code definitions (21.72.010), use tables (21.48) and accessory dwelling standards (21.64.010), and Titles 6 and 7 (no City hotel tax found); the City's Rental Licensing Procedures, Short Term Rental Portal and tax remittance pages; and City Council legislation on Legistar from June 2025 to October 2026, including Ordinance O-40-25 (moratorium), the Planning and Zoning Department's September 2026 interim briefing, Resolution R-33-26 (short-term rental fines, adopted September 28, 2026) and pending Ordinance O-11-26. We will watch the Code, the Council's legislation and the moratorium's expiry.
Adopted March 9, 2026 and effective on passage: no new short-term rental licenses for 12 months, except for owner-occupied homes; renewals of existing licenses in full compliance continue. The City must report findings and any recommended Code changes no later than 60 days before the moratorium ends. The Planning and Zoning Department's September 2026 interim briefing lists options under study, including a stricter owner-occupied definition, limits on rental days, and zoning restrictions on non-owner-occupied rentals in some districts.
Added the blockface cap, phase-in and lottery to section 17.44.090(D); over-cap licenses may renew until November 1, 2027, after which licenses are allocated by lottery with priority for City and County residents.
O-11-26 (Allowing Long-Term Room Rentals in Private Homes) mainly creates a rooming house license, but it also rewrites section 17.44.110 and its first-reader text adds a definition: owner-occupied means the owner's primary residence is the licensed premises and the owner lives there at least 183 days per calendar year. That would affect which short-term rentals count as owner-occupied for the blockface cap. The City Council adopted it on first reader on May 26, 2026 and closed the public hearing on September 14, 2026; it had not been adopted as of October 8, 2026, and the final wording may change.
From October 1, 2026, hosts of rentals offered for less than 30 consecutive days must post an evacuation diagram and emergency numbers and provide a fire extinguisher and working smoke and carbon monoxide alarms; booking services must notify hosts. Each county must require annual inspections of short-term rental units by July 1, 2028. The sources read do not say how a Worcester County inspection law would apply inside the Town.
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This page is general information compiled from public sources, not legal or tax advice. HOA rules, deed restrictions and zoning for a specific property can be stricter. Confirm with the local permitting office and a qualified professional before buying or listing a property.