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 in March 2025. Since August 21, 2026, new Residential-zone applications go onto a waitlist as the city approaches the cap, and the city gives no processing timeline.
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, commercial and recreational zones. Residential zones are capped at 900 permits citywide. Hosted rentals (owner present, not the entire dwelling) are not subject to the VHR regulations but need a separate hosted rental permit ($281 per renewal period). [1] |
| Measure T history | Measure T (approved by voters Nov. 6, 2018) banned new residential-area VHR permits, with existing residential permits expiring in 2021, and exempted permanent residents (QVHR permits). On March 13, 2025, El Dorado County Superior Court struck down Measure T in its entirety, finding the permanent-resident exception unconstitutional; the City Council voted not to appeal on April 1, 2025. Interim Ordinance 2025-1200 took effect July 17, 2025, and Ordinance 2026-1203 (adopted March 24, 2026, effective April 23, 2026) set the current 900-permit Residential cap and waitlist, replacing a 150-foot buffer between VHRs [1] [2] |
| Residential zone waitlist | Effective August 21, 2026, new Residential-zone applications go onto a waitlist as the city approaches the 900-permit cap; waitlisted applications are not reviewed until a space opens, and the city gives no ETA. The waitlist does not apply in the Tourist Core or commercial zones. [1] [2] |
| Occupancy limits (Residential zones) | Studio/1BR: 2. 2BR: 4. 3BR: 6. 4BR: 8. 5BR: 10. (Up to 5 children age 13 and under, or 2 in a studio, don't count toward the maximum.) Occupancy is also limited by the number of paved parking spaces. [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, $165 re-inspection, $200-$850 annual fee (tiered by occupancy). [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 [3]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] |
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Detailed rules
The full picture, section by section
Eligibility & zoning
| Tourist Core/commercial vs. Residential zones | The Tourist Core, commercial and recreational zones have no permit cap and are regulated under the rules that apply to the Tourist Core Area Plan; Residential zones (yellow on the city zoning map) are capped at 900 total VHR permits citywide, with stricter occupancy limits, higher annual fees and property-manager and monitoring-device requirements [1] |
|---|---|
| Occupancy limits (non-residential zones) | Limited by both paved parking (4 occupants per space: 1 space = 4 up to 5 spaces = 20) and bedrooms (studio 4, 1BR 6, 2BR 8, 3BR 10, 4BR 12, 5BR 14); the lower of the two applies [1] |
Licensing & application
| Application process | Submit application online, staff reviews within a 30-day window, pay application and inspection fees, schedule and pass an inspection (or pay the re-inspection fee), pay the annual occupancy fee, staff issues the permit. Since August 21, 2026, new Residential-zone applications are waitlisted and not reviewed until a space opens. [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 | Required for VHRs outside the Tourist Core Area Plan (Residential areas); the owner may serve. The manager must check guests in (in person or virtually) and verify identities, keep a 24/7 local contact number, and respond in person within 60 minutes to complaints; indoor noise and outdoor video monitoring devices that alert the manager 24/7 are required [1] [2] |
| 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% [3]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 [3]Confirming |
| Room-night reporting | TOT payment submissions must now include room-night reporting [1] |
Changes
Recent and pending changes
We re-checked the City of South Lake Tahoe's Vacation Home Rentals page and the codified VHR rules (City Code 3.50.400, eCode360), and searched news from the last six months for further amendments, litigation or cap changes; none found beyond the August 21, 2026 waitlist. The city's Transient Occupancy Tax page could not be loaded, so tax figures await a browser check. This market's regulatory history is unusually active: a 2018 voter-approved ban (Measure T) was struck down in March 2025, an interim ordinance (2025-1200) took effect July 2025, and a replacement ordinance (2026-1203) took effect April 2026, with Residential applications waitlisted within four months. Watch City Council agendas for further amendments and the VHR page for waitlist status changes. The market covers the incorporated city only; unincorporated El Dorado County (Tahoe basin) has separate rules.
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.
Effective August 21, 2026, new Residential zone VHR applications go onto a waitlist as the city approaches the 900-permit cap. Waitlisted applications are not reviewed until a space becomes available, with no stated timeline.
On March 13, 2025, El Dorado County Superior Court struck down Measure T (2018) in its entirety, finding its permanent-resident exception unconstitutional. Measure T had banned new residential-area VHR permits, and existing residential permits expired in 2021. The City Council voted not to appeal on April 1, 2025.
After the court struck down Measure T, the City Council adopted Ordinance 2025-1200 on June 17, 2025, reopening residential VHR permits under stricter rules (including a 150-foot buffer between VHRs). It was in force until Ordinance 2026-1203 replaced the buffer with the 900-permit cap on April 23, 2026.
Sources
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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.