Short-term rental rules · South Lake Tahoe, California
Short-term rentals in South Lake Tahoe, explained properly.
Vacation Home Rentals (VHRs) face no cap in the Tourist Core and commercial zones, but Residential zones are capped at 900 permits under a 2026 ordinance that replaced the voter-approved Measure T ban after a court struck that ban down. The Residential-zone cap is already full — new applications there join a waitlist with no processing timeline.
Draft. These rules were compiled from the official sources listed below but have not yet been checked line by line. Confirm with the city before making decisions.
At a glance
What you need to know before you buy or list
| Question | Answer |
|---|---|
| Are vacation home rentals allowed? | Yes. No cap applies in the Tourist Core and commercial zones. Residential zones are capped at 900 permits citywide.[1] |
| Measure T history | Measure T (2018) banned new residential-area VHR permits and forced existing ones to expire by the end of 2020; a 2025 court ruling struck down Measure T, and the city adopted Ordinance 2026-1203 (effective April 23, 2026) establishing the current 900-permit cap and waitlist system[1] |
| Residential zone waitlist | As of August 21, 2026, the 900-permit Residential zone cap has been reached; new applications join a waitlist with no stated processing timeline[1]Confirming |
| Occupancy limits (Residential zones) | Studio/1BR: 2. 2BR: 4. 3BR: 6. 4BR: 8. 5BR: 10. (Up to 5 children age 13 and under don't count toward the maximum.)[1] |
| Permit fees (2026) | Residential zones: $548 application, $285 inspection, $165 re-inspection, $670-$3,485 annual fee (tiered by occupancy). Non-residential zones: $548 application, $285 inspection, $200-$850 annual fee (tiered).[1] |
| Minimum renter age | 25 years old[1] |
| Combined guest tax | 12%-14% Transient Occupancy Tax plus a $4.00/night (hotels/motels) or $5.50/night (timeshares and agent-managed VHRs) Tourism Improvement District fee[2]Confirming |
| Attached condominiums | Attached condominiums may obtain VHR permits unless the property's HOA rules prohibit vacation rentals[1] |
| Permit transfers | Permits may be transferred to a family trust for estate-planning purposes[1] |
| Last researched | September 25, 2026 |
Watch this market
Want to know when South Lake Tahoe's rules change?
We watch South Lake Tahoe's official rule pages, council agendas and California legislation. When a change affecting short-term rentals is proposed or passed, we email you what changed, when it takes effect, and a link to the source.
No spam. Unsubscribe anytime. See our privacy policy.
Detailed rules
The full picture, section by section
Eligibility & zoning
| Tourist Core/commercial vs. Residential zones | The Tourist Core and commercial zones have no permit cap and standard regulations; Residential zones are capped at 900 total VHR permits citywide, with stricter occupancy limits[1] |
|---|---|
| Occupancy limits (non-residential zones) | Based on bedrooms or available parking spaces; up to 20 occupants where 5+ parking spaces are available[1] |
Licensing & application
| Application process | Submit application online, staff reviews within a 30-day window, pay application and inspection fees, schedule and complete an inspection, pay the annual occupancy fee, permit issued[1] |
|---|
Operations & requirements
| No commercial events | Weddings, parties, and other commercial events are prohibited at VHR properties[1] |
|---|---|
| Quiet hours | Noise is prohibited from 10 p.m. to 8 a.m.; the same hours apply to pool, spa, and hot tub use[1] |
| Property manager requirement | A property manager is required; the owner may serve in this role[1] |
| Advertising requirement | All advertising must include the permit number; residential-area VHR advertising must also include family-friendly language[1] |
| Required signage | Exterior signage, interior signage, emergency exit signage, and hot tub signage (where applicable) are all required[1] |
Taxes & fees
| Transient Occupancy Tax rate | 12% standard rate (increased from 10% after Measure P in 2017); some properties previously grandfathered at a 12% rate now collect 14%[2]Confirming |
|---|---|
| Tourism Improvement District (TID) fee | $4.00 per night for hotels and motels; $5.50 per night for timeshares and agent-managed vacation home rentals[2] |
| Room-night reporting | TOT payment submissions must now include room-night reporting[1] |
Changes
Recent and pending changes
Checked the City of South Lake Tahoe's Vacation Home Rentals page and Transient Occupancy Tax page as of the research date below. This market's regulatory history is unusually active: a 2018 voter-approved ban (Measure T) was struck down by a 2025 court ruling, and the city adopted a replacement ordinance (2026-1203) in April 2026 that itself hit its permit cap within months. Watch South Lake Tahoe City Council agendas closely for further amendments, and the VHR page directly for waitlist status changes.
Following a 2025 court ruling that struck down Measure T's residential-area VHR ban, the city adopted a new ordinance establishing a 900-permit cap with a waitlist for Residential zones, alongside updated fees, occupancy limits, and a minimum renter age of 25.
New Residential zone VHR applications began entering a waitlist as of August 21, 2026, with no stated timeline for processing, after the 900-permit cap was reached.
A 2025 court ruling struck down Measure T (2018), which had banned new residential-area VHR permits and forced existing permits to expire by the end of 2020.
Sources
Every rule above links to one of these
Newsletter
Not tracking South Lake Tahoe specifically?
One email a month with STR rule changes across the US markets we track.
No spam. Unsubscribe anytime. See our privacy policy.
Questions
Managing properties in several cities?
Tell us what you're trying to decide and which markets you operate in. We read every message.
This page is general information compiled from official 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.