Short-Term Rentals in Sussex County, DE (2026)

Permit Requirements

Sussex County, Delaware (which includes the major beach short-term rental markets of Rehoboth Beach, Bethany Beach, Lewes, Dewey Beach, Fenwick Island, Long Neck, Millsboro, and Milton) has NO unified countywide short-term rental zoning permit for unincorporated areas. Operators must comply with three separate frameworks: (1) the State of Delaware's 4.5% short-term rental lodging tax under HS 2 for HB 168 (signed September 30, 2024), administered by the Delaware Division of Revenue and effective for rental agreements entered into on or after January 1, 2025; (2) the Sussex County 3% local lodging tax under Sussex County Code Chapter 103, Article VI (originally enacted 2020 for hotels/motels/tourist homes; expanded by Ordinance 2687 to include short-term rentals in the unincorporated areas effective with the State's STR lodging tax); and (3) municipal rental licenses for incorporated towns (Rehoboth Beach $150 annually, Bethany Beach $100 annually plus 7% local tax, Lewes $100 annually, Dewey Beach $188 base + $15/bedroom over 2). Sussex County itself does not currently issue a separate STR zoning permit for unincorporated parcels; the county relies on Chapter 115 (Zoning) for use compatibility and the state-level Division of Revenue business license for accommodations intermediaries.