Birmingham, AL Short-Term Rentals: Permit Requirements (2026)

Birmingham regulates short-term rentals primarily through the City of Birmingham Business License framework administered by the Department of Planning, Engineering & Permits (City Hall, Room 210; (205) 254-2333) and the Tax and License Division (City Hall, TL-100, 710 North 20th Street; (205) 254-2198). Every operator who rents a dwelling for stays of less than 180 consecutive days must apply for a Birmingham Business License and a Tax Certificate by submitting the City of Birmingham Business License Application and the Application for Tax Certificate together; published fees are a $150 application and a $100 annual renewal, with all business licenses renewing by January 1 of each year. Birmingham does not currently have a standalone STR ordinance with specific hosted vs. non-hosted permit categories: city officials began drafting one in 2023, released a public draft in July 2024 distinguishing owner-occupied (hosted) from non-owner-occupied (non-hosted) short-term rentals and proposing zoning, parking, and occupancy standards, but the ordinance has not been formally adopted as of this verification. Until adoption, all STR operations within city limits use the standard city business license, regardless of whether the owner lives on-site. Operators must collect and remit the combined lodgings tax of 13.5% on every booking under 180 consecutive days, broken down as: Alabama state lodgings tax 5%, Jefferson County lodgings tax 2%, City of Birmingham lodgings tax 6.5%, plus a Birmingham per-room surcharge of $3 per room per night. Private restrictions (HOA covenants, deed restrictions, condo bylaws) may further limit short-term rental use even where city licensing allows it. Birmingham retains general zoning authority and may apply existing zoning, fire, and property-maintenance codes to STR properties.